Both my wife an I hold Providian cards. I have had mine for over 3 years,she around year less. She has received a letter informing her of an incoming interest rate climb from 23.99 to 29.99% starting August. There were no reasons disclosed. Is this a regular overall interest climb for everybody? I haven't gotten similar letter but I suspect I will soon...maybe not. In the letter it states that you can either accept it or close the account before the new interest rate comes to life. Aren't there laws forbiding credit card issuers from going over the certain limit? We live in AR where there is a top line of interest on auto loan that the in state company may charge. I have heard that companies may do issue a card with like a 30% interest to people with high risk(especially after filing bankcrupcy). My wife's credit is pretty good, she just got a car loan from a major bank. What's the deal here? Please expand my knowledge. Thanks upfront.
Lot's of threads going on this topic already. A lot of us are getting these letters. They just don't want us anymore!
I didn't know that. I guess this also faces me. I got a problem with paying off that $4500. Almost a year ago I sweet talked Providian into lowering my interest form 23.99 to 16.99. They knew what they were doing heh? Nothing I can do, just pay my minimum and be bomarded with 30% interest. I can't afford to pay more than $50 over the minimum. When this new rate comes in, I'll be paying this till retirement.
Yeah, they are axing most of their good customers. Their CSR's have a pretty clueless script answer as to why. "Corporate Business Decision" BS Someone should call over there and totally raise hell until they can talk to someone who has a clue. If they want us gone, by all means, let them go. Close out and pay it off at your current APR, or BT it somewhere else and tell them where to go. I have NEVER heard a credit card customer service agent press closing your account so much ever! They really just don't care anymore.
If ~75% of the customers close and pay off the account in the next few months...WON'T THAT HURT THEM??? They are doing the 29.99% for WHO'S benefit????????
The benefit of the people who got this card and cannt get another credit line right now, and the benefit of themselves for basically making their customers decide to dump them. Ya know, there is probably a clause somewhere that says they cannot close so many accounts at once, so, they offer something barbaric and let their customers close themselves.
A national bank, like Providian National Bank, which issues the subprime Providian cards, is exempt from state interest rate ceilings. It has to do with federal law and the interstate commerce clause of the Constitution.
THE REAL TRUTH: Providian has been digging their own grave for years by scamming consumers and investors resulting in numerous class action lawsuits... NOW they are passing the buck... their loyal customers are paying for their legal fees with an interest rate hike. Nice. Do the world a favor- close your account, grab a shovel and help put these guys underground for good.
Providian wins short term on this either way. They are trying to get out of the subprime market. People who have options will close out their accounts and pay off their balances right away, so they have all of this incoming cash. People who have no choice but to keep their cards will be paying them almost 30% interest...so they will make money there. Short term, they can't lose. Long term...well...within the next two months I should have all three reports spotless and be in prime territory. If I close my accounts, they would not be able to pay me enough or give me enough incentives to ever hold another Providian product. Oh...only one of my cards got the rate hike...my Visa...Mastercard hasn't had any word as yet. L
I got the same letter the first of the year. I had a balance , but I closed my account immediately and kept my interest rate of 16.99. this card was my oldest TL, but I didn't care. I refused to pay those type of interest rate. My balance was 2,800. So at 29.99 it would take me forever to pay it off.
