Banks have found a way to stick us AGAIN - This time it's PERSONAL!!

I've just come from my credit card payment website and I am pissed off ROYALLY! My credit card bank is Bank of America.

First, a little background. I was reading this article written by Clark Howard who I've listened to for years and decided to go check out my APR on my card. I haven't checked it in a while because I have a very good credit rating and pay all my bills on time. I had just assumed everything was alright.

Well, bite my A$$, I've had a 6.99% APR for at least four years now and guess what it is now... you ready?.... 28.99%!!!!!!!!!!!!!!!! I felt sick and got dizzy.. seriously...

This has GOT to be ILLEGAL! If not illegal it DEFINATELY is IMMORAL! Not only do they get my tax dollars and possibly my pension money (as stated in another thread) but they get my bill money too!

EDIT to add - I don't recall BoA EVER contacting me to alert me to the change... I pay attention to those things and cannot remember getting anything from them... they just did it... sneaky like...

[edit on 13/2/2009 by Iamonlyhuman]

Oh - by the way -

Clark Howard, the Atlanta, Georgia-based host of a nationally syndicated radio show, hosts a television show designed to help viewers save more, spend less and avoid getting ripped off during these tough economic times.

I recently had a massive hike on my credit card must be with all the defaults that are going on with people becoming unemployed or more likely another excuse to ripus all off

Yea I got the same thing too.

I guess the credit card companies and bankers don't are worried about the ability of the American consumer to pay back debts so they charge near usery rates.

The funny thing is that credit card companies and bankers are near insolvent themselves and the American taxpayer is dumping them money so they can stay afloat.

The question is, do these bailed out institutions pay the taxpayer back at 29.99% APR?

I doubt it.

that is total garbage! this makes me grateful that i've always been leery of credit cards and have only used them in case of emergency. BS man, that is just completely unfair to you. I wonder how many other people out there are dealing with massive hikes like that?

Lots and Lots of small print in those contracts isnt there?

What amazes most people and who would refuse to accept to if you say to them is that they can also within all credit card small print if you look properly, ask for a full and immediate (say 4 weeks notice) payment of the entire account and stop spending on it to, even if you have never once missed a payment.

Thats something to think about eh.... if all the Europeans and USA citizens were asked to clear their balance in 1 month.....well most would have to go bankrupt....

well in the UK anyhow a person in debt to a credit card of just £3,000 can be forced into bankruptcy by the Card company if they dont pay and hold assets, say in PROPERTY lol.

Read the small print is all I can say.

Kind regards,

Elf.

This isn't new. Citi bank did this to me 6-7 years ago.

They waited for it to get a nice hefty sum then slammed me with 29%. I was alright with what I borrowed(for all house improvments on my first house) innitially with the low rate but after it got jacked up I couldn't afford it.

I prided myself on good credit and the only time I was ever late was on a dept store card when I was 18, maybe 5 years before the citi charge up. So I called Citi and told them that I was never late on their card, they agreed but said they reserve the right to raise my rate due to being past due on anything from any given time in my life. Of coarse I pleaded that wasn't right, that business should just be between us and I have been on time paying. They didnt want to hear it.

I'm just now recovering from that one credit wise but it was a long struggle. So let these stories be a lesson to you youngsters. CC's are bad, VERY bad.

[edit on 13-2-2009 by Tyr Sog]

The only credit card that I have ever had was a Texaco card and at the time they did not charge interest at all.
When they did start to, it was that if you paid the whole amount there was no interest.
Early in life I learned to save for things I wanted.
This buy now pay later syndrome is a sickness foisted upon us.

Except for housing, There is likely little real reason why anyone should have to buy on credit.
Why should you need credit?
From the advertisements I see for people to check their credit rating, it seems to be a kind of social ranking system. They have everyone wanting to have that high score.

Right now there are lots of folks who have no money and no jobs and they are just not paying. These companies will settle for about half of what is owed. Otherwise they get nothing.

I say pay the principal if you can and no more. Let them eat their exhorbitant usury rates.

Originally posted by OhZone
The only credit card that I have ever had was a Texaco card and at the time they did not charge interest at all.
When they did start to, it was that if you paid the whole amount there was no interest.
Early in life I learned to save for things I wanted.
This buy now pay later syndrome is a sickness foisted upon us.

Except for housing, There is likely little real reason why anyone should have to buy on credit.
Why should you need credit?
From the advertisements I see for people to check their credit rating, it seems to be a kind of social ranking system. They have everyone wanting to have that high score.

Right now there are lots of folks who have no money and no jobs and they are just not paying. These companies will settle for about half of what is owed. Otherwise they get nothing.

I say pay the principal if you can and no more. Let them eat their exhorbitant usury rates.

agreed! but even better, if you can get away with NOT having a credit card at all, do not sign up for one! there are other ways to build credit, these things are a frigging trap designed to make money for the banks.

Originally posted by Iamonlyhuman


Well, bite my A$$, I've had a 6.99% APR for at least four years now and guess what it is now... you ready?.... 28.99%!!!!!!!!!!!!!!!! I felt sick and got dizzy.. seriously...

Didn't you get the memo?
They gave you the choice of opting out.....

BY PAYING OFF YOUR BALANCE and closing your account

Bankers are the scourge of the earth.

I have no more CCD debt, and I've half a mind to personally empty out all of my accounts.

However...

Since I'm aware that I only have half a mind, I'll need a couple days to mull it over.
I'm pretty sure I'm going to do it though, I just can't rationalize supporting a greedy institution that doesn't create so much as a single grain of rice while they line their pockets with our hard earned money.






[edit on 13-2-2009 by lernmore]

I belive the legal national interest rate is 30%. or maybe 29% so there are barely under the legal limit.
line 3

Originally posted by BeyondBelow
I belive the legal national interest rate is 30%. or maybe 29% so there are barely under the legal limit.
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nope...the fine print reads that they can charge any interest at any time for any reason...you have to read the fine print....they can charge you 100% interest if they want to.

perhaps it is time to flood senators and representives with a demand to pass legislation that lowers interest rates. We're giving these banks our hard earned money via bailouts, so I think we deserve a damned break!
It pisses me off just as bad as the op!

Oh yeah, welcome to "rate jacking" Even though you were never late on that card, being late on another card, or a utility payment is enough for them to do it. They only have another 15-16 months left before they cannot do this anymore. In the mean time they are jacking everyone they can.

TheWelder

They cant charge 100% interest.
But they can go up to 30.
And basically, they just have.
Balance Transfer your debt to another card company you might get like 0% interest for first 6 months.
Don't pay them 29%.

Originally posted by BorgHoffen
They cant charge 100% interest.
But they can go up to 30.
And basically, they just have.
Balance Transfer your debt to another card company you might get like 0% interest for first 6 months.
Don't pay them 29%.

Yeah... do they even offer those anymore? For so long, I've just thrown those offers away because my fixed rate was always better than the fixed rate after the introductory period. I wouldn't be surprised if banks didn't even offer those anymore.

Take a loan on your 401k if you can and pay it off... I did.

Most 401k plans you can borrow up to 50% of your vested balance and the interest goes back into your 401k in most cases.

Also, as another poster said, go get another card say from US bank which has 0% for the first 6 months and transfer that balance!

I've just been looking at the zero interest intro cards and the thought occurred to me that what they're doing is getting rid of all of the contracts with low fixed interest rates. Albeit 10% (with an "excellent" rating) is definitely better than 28.99%, it still sucks. I guess contracts with banks only benefit the banks... don't know why I would think anything else. As far as the 401K goes (actually it's a IRA in my case), I've been unemployed for 1 1/2 yrs and it's almost depleted.... oh well.. at least I have my house.... for now.

[edit on 13/2/2009 by Iamonlyhuman]

Oh, yea, I feel your pain! Just the other day, I received an 'important notice of a change in terms' through the mail. At least this particular credit card company was so nice to mail me something in black and white (with some color, too). I still could 'pay down [my] balance at my existing terms' by April 2009, 'decline this change and close [my] account'. So there is hope as soon as I could find a friggin' JOB! Allelujah! Amen!

I am so sorry. I think people should start canceling their credit cards, and boycott BofA, Wells Fargo, and a whole host of other banks who do this to their customers. STOP PAYING THEM. Force them down. Money is the only thing these guys respond to. If you cut off the crack the patient gets better after initial withdrawals.