I have just received two change of terms inserts with my statement. The current APR is 9.99. The terms state new default APRs, raise the APR for cash advances and contain a few other consumer unfriendly provisions such as a 2% surcharge on foreign transactions, requiring arbitration of disputes, and an adjustment in the APR to 19.99 if the account is closed. While I don't like any of this, I don't feel like I'm much affected by it. The purchase/balance transfer APR remains the same for accounts in good standing and I never close an account until it has a -0- balance.
IF YOU OPT-OUT OF CHANGES...they will CLOSE the account for you, and RAISE your rate to 19.99%...1.00% HIGHER THAN THE RATE THEY WERE GOING TO GIVE YOU!!!!! THEY WIN BOTH WAYS~~~YOU LOSE BOTH WAYS!!!
I got my card in April with a teaser rate that is expiring next month. I also recently got an insert changing my terms including my apr. My intention had been to contact Nextcard anyway to ask for an apr. reduction and credit limit increase. I contacted them via Planet Feedback when the rep. I telephoned said there was nothing that could be offered to me at this time as I am on the teaser rate. The 2 responses I got from the Executive office to the planet Feedback letter can be summarized as follows: There is nothing we can do you at this time in regard to your apr. or credit limit as your account is so new. You will be considered for future promotional offers. We hope to keep you as a customer Mr. Jim. No big deal. The card will be paid off when I get my next statement. I like the $6,500 credit limit. When the account is 6 months old, I'll contact Nextcard again. Jim
George-- It's not win both ways for Nextcard. If you opt out of the changes, you are opting out the change to 19.99 which they would impose if the account is closed. Also, you could make the argument (if they close the account) that the rate doesn't apply since the change of terms notice says the rate goes to 19.99 if YOU close it. If they try to impose that rate after you opted out, they would be violating the agreement that you made when you got the card and you could file an action in court for declaratory relief against the additional finance charges and the threat to your credit standing if you refused to pay--since you've also opted out of the provisions which would force you to arbitration.
