In Sept. 2007, I was one day late on a cc pmnt. The card belonged to WaMu at the time, it has since transferred to Chase. The next day my interest rate was raised to 31.99%. I had a 9500 credit limit, and was using 6-7,000. Last year I paid off 5,000, now my balance is down to 960. I have been emailing Chase for days to ask why my interest rate will not be lowered. Each time they reply they tell me to contact them in 6 months. They also said that 6 months ago, and 6 months before that! Does anyone know of a law that states that a cc company must give you an answer as to why they will not lower the rate? I have paid faithfully since that day in 2007 - never missed a payment date and have the card almost paid off. Morally & ethically is seems that they are obligated to give me a REASON for not lowering my interest rate. The last email I received this morning was a riot: due to the economy we cannot lower your rate at this time. I don't know how to get an answer from them. Any suggestions anyone???? Thanks!
There is no statute that requires banks to provide any reason for not responding to your request. If their contract with you on the account permitted the interest rate hike, then you are at their mercy and likely out of luck. Pay down the balance as quickly as you can.
However, if it is a penalty rate, they will now have to lower it after six consecutive on-time payments. That's part of the CARD act that took effect yesterday. But now the regular interest rates are almost what used to be a penalty rate. Another offshoot of the CARD act. Ask if your APR is a penalty rate. If so, ask them to lower it if you've made six consecutive on-time payments. But don't be surprised if the "regular" rate is only about a percent lower. Even people with perfect credit have seen their rates raised, some into the mid-to-high 20% range. And it goes along with the credit line decrease. Again, thank your Congress critters for passing the CARD act.
Well, look at how they did it. Gave the banks more than enough time to jack rates and cut limits. Just follow the money. The two biggest recipents of money from the financial sector were Chris Dodd (Chair of the Banking Committee) and Barack Obama. Yes, Congress replied to the outcry of the people, but only after they made sure their financial interests were taken care of. It always works that way. Hold out your hand to the government and it seems when they take care of you they manage to cut off a figure or two in the process.
Hedwig: AGREED! In January, the 4 out of 5 credit cards I have raised the rates by at LEAST 4%, and Citibank cut my limits by a total of $10,000 between the two cards I have with them....I sent them a fabulous scathing letter via Planet Feedback. I don't expect a response, in fact I would almost expect a restraining order from the CEO...here's a copy of my letter (I'd like to toot my own horn on it)
@Hedwig: Thanks for your answer. Do you know if the lowering of the interest rate (after 6 months) applies only to credit that is used after February 22nd? I've heard that none of the new laws are grandfathered to balances that were incurred before Feb. 22nd ~ which won't help me in the least.
No, I don't know. That seems to be the missing piece of the puzzle. I haven't read the actual law, only highlights. Apex may know when he comes by.
