Does anyone know what the interest rate cap for Ohio (if there is one)? I thought that it was 24.99%.
I PFB'd Providian regarding my rate increase on my secured visa card. I pointed out that in 08/01, my credit was worse and received a 23.99% rate. Now, in October 2002, and my credit has improved, they want to up my rate to 28.99%? Illogical. The letter states that if I make 12 consecutive payments on time, aaaaaaaannnnnnnnnnnndddddddd they are satisfied with my credit report that they pull, my rate will go back down. This is like saying "If we feel like it , which we won't, we will lower your rate." I'm so mad!
If a credit card company has a real bank that accepts deposits, they may export their interest rates anywhere in the country. An interstate banking compact gives them that right. State usury laws don't apply.
Well, at least I'm not the only one getting slammed with the increase. Just got a letter today stating the exact same thing: rate going from 23.99 to 28.99 and I'm in Michigan. I have had the card for over 2 years and never made a single late payment. In fact, my limit has gone from $500 to $2700 over the same period. Not sure why the sudden increase, but they blame it on a recent review of my account, including an Experian credit report. I did some research but it appears that there is no maximum interest rate that can be charged on a credit card. The only good news is that a 25-day grace period was added, so I could conceivably pay off the card every month and avoid the interest. Of course, if I had that kind of money, I wouldn't be carrying a balance of $2200. They also will allow you to close the account to avoid the increase, then you could just make monthly payments until it was paid in full at the current rate of 23.99. Of course, you lose the benefit of using the card when you close the account. What really burns me is that they wait until one month after hitting me with the $59 annual fee to pull this crap, knowing good and well that I most likely won't close the account now that I've paid the fee. Anyway, I'm open for suggestions if anybody has a good idea on how to fight this.
