I have a fleet card with a 15,000 limit and it started as a low interest 9.9% and all of a sudden after it got to a 3,000 balance with balance transfers it went to 16%. I called and was told that the decision was made to increase based on my credit report. The funny thing is my credit is better now then it was when we got the card and the limit. Are there any suggestions and can they do it?
About the only thing you can do it to xfer the balance OFF of that card. ***DO NOT CLOSE THE ACCOUNT OR THREATEN TO CLOSE IT UNTIL IT'S PAID OFF*** Fleet has a punitive interest rate for "closed' accounts somewhere around 26%. I doubt anyone can do much for you at customer service - if you've been a long-time customer you may want to try talking to a supervisor, but that's a crap-shoot. Check your credit reports - has something changed (utilization ratios, recent derragatory, someone else fiddlin' with your credit?). Good luck- mj
Something happened with my brother-in-law. His APR shot up and they gave him the same reply. Soooo he paid off the balance and now only has his $11.00 Palm VII monthly charge. Best regards, Sam
Is this a common practice? Anyone have any other examples? Seems kind of unfair, but I am not that naive .
Yes, they can do it and yes it is fair. The only way to deal with creditors is from a position of strength. The only way to build strentgh is to exercise your credit. It will bring lower rates and higher limits. You must do it when your credit is strong, so you can be prepared. Rates are presently in a downward spiral, if they are raising your rate now, imagine what is going to happen in a couple of years when the rates start going back up. This is the time to build strong credit. Always have available credit to payoff any creditor that dares to raise their rate on you. They will comeback begging for you to borrow again. They need you more than you need them. www.creditsense.com
Mathewsa1, Same exact thing happened to me. What you need to do is contact customer service to find out which report they pulled...probably TransUnion. Call TransUnion's automated line and order your report (it should be free). Wait the freaking 2 weeks to receive the report via snail mail (I don't know why TransUnion does it this way). Once you have the report in hand make sure there are no major changes (everything will probably be in perfect condition...Fleet is famous for this stunt). Type a letter to Fleet's credit department telling them to reduce your interest rate back to its previous rate along with a copy of your credit report to: Fleet National Bank Attn: Credit Department, PO Box 1568, Harsham, PA. Send it return receipt. It will take Fleet 3 weeks to reply, but they should reduce the interest rate back. Once you receive the letter from Fleet contact their Customer Service (if you can call it that) and dispute the additional finance charges that you accrued in the mean time. This will take an additional month or two, but they will send you a refund. Until then transfer the balance to another card (if not it will continue to be charged at the 16.99% rate). Once you have your refund back cancel Fleet (they're skunks in my book). Hope this helps. If you need any additional help let me know. Dani
No need to get excited, this is a common Fleet/FirstUSA fraud tactic. The solution is simple: If your credit really is better, you should qualify for a credit card from one of the better lenders. Saar
Thee are two Class Actions against Fleet right now for the very same actions you are talking about. Here is a link: http://www.lieffcabraser.com/fleet.htm
Dani, this is exactly the kind of detailed information that makes this board so great! Can you imagine what would happen to the lending industry if Joe and Jane Average Consumer read this board? Thanks!
