I just received a letter from them. They are changing the terms of my account. Interest was 16.9% after December 1, 2002, my interest is changing to 23.9%. This is because "Our decision to change your Account was based on the following reasons: Payments are low compared to balance owed." The idiots tell me what my monthly payment is - I always pay a little over my minimum while I've been paying off something else! I guess I'll call them when I get back in the office after while. By the way, this is Household Bank!
YUCK!!! how in the heck can they do that? I guess they feel that they can makes tons of money off of you..
Maybe they think you have nowhere to go, and that you're paying just above minimum because you are having a hard time paying - that's the "Gotcha!" game the card companies play. I hope you have someplace to transfer that balance!!
Don't feel bad, MBNA does the same thing. I had been making payments on time for two straight years and allowed the balance to go over 60% of total credit line. After a few months (2-3?) I received a letter that my interest rate was going from 12.9 to 18.9%. Gotta love their logic though..."maybe he'll pay us off quick and dump the card if he doesn't like his new terms". Grand intelligence indeed.
You think that's bad? Check out the AT&T Universal APR small print: "Your annual % rates may also vary if... you fail to make a payment to us OR ANY OTHER CREDITOR WHEN DUE..." (caps mine) Forgive me if I'm misunderstanding a concept. If a company checks your CR, aren't they checking to see what everyone Else is saying about you? A creditor doesn't need to check your CR to see how you're paying Them. Ergo, the concept of Account Reviews by existing Creditors is either 1) an indication that they can't communicate properly between their own departments and have to have the APR folks check your CR to find out if you've paid, rather than call the Payment Processing folks down the hall (Fire them all!) or 2) an outright LIE to the American Consumer so that Creditors can trade on Gossip and raise % rates at their whim, while maintaining the flimsiest shroud of economic plausibility and hoping that no one will notice. Guess what... we're noticing...
Forgive my newbie ego - but that #2 point really impresses me and I think it applies to the entire credit industry. I shall now wallow in my own 15 bytes of fame. You are excused and may leave at any time..... "Guess what... we're noticing" I love it !!!! lol
At the moment, I don't have anywhere to bt it to. Don't really need it, I just finished doing the voluntary payoff to AMEX from the BK years ago. I wrote to PFB to see if they will keep it the same, if not, it's only about $2500, it'll take me about 2-1/2 months to pay them off - and tell them what to do with the card. Not having a hard time paying more than minimum, I've just been paying my boat way down, bought it last summer - already half paid for. Gotta have a boat in TX!
