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Advice: To opt out or not?

New Contributor

Re: Advice: To opt out or not?


Really? You think that rate is permanent and can't be changed? I hope you are right but I thought all my "fixed" rates were permanent........ until all of them were raised. Shows what I know. 

Time can heal all wounds and a low FICO. 


It's permanent as long as you pay everything 100% on time and don't overdraft, or become delinquent in some way.  So far I've been safe.  But you're right, there are conditions. 

 

It keeps me pretty paranoid.  I call every couple of months, just to make sure that it's permanent, and I always get them to repeat what the conditions are.  As long as they have to stick to their contracts, I should be fine.

Message 21 of 44
New Contributor

Re: Advice: To opt out or not?


dee wrote:
From what I am hearing and now seeing, nothing is fixed.  They can change rates on any card now to any rate.  No matter what.

Unless the government gives them the right to back out on contracts (wouldn't surprise me), they can't.  You just have to be very careful you are within the rules of the agreement.

Message 22 of 44
Established Member

Re: Advice: To opt out or not?

Well, it's fixed for as long as 'they' say it's fixed.  Never for the amount of time 'you' take to pay off the loan/card.  For some it could take them over 40 years!!
Message 23 of 44
New Contributor

Re: Advice: To opt out or not?


dee wrote:
Well, it's fixed for as long as 'they' say it's fixed.  Never for the amount of time 'you' take to pay off the loan/card.  For some it could take them over 40 years!!

I've had some for over 4 years.  I mean, they plain-as-day say "the life of the loan."

 

If you are saying they now have the right to void standing contracts, that's a different story.  But I see no evidence for that. For starters, it would be illegal.  They may be acting pretty disgraceful right now, but let's not exagerate.

 

If there is evidence of this actually happening, I'd like to see it.

 

 

Message 24 of 44
Established Member

Re: Advice: To opt out or not?

As far as I can see and what I am hearing, they are doing exactly that.  I would post your comment/question on that exact question and see how many respond.  From what I hear/see, they are changing the contracts.
Message 25 of 44
Established Member

Re: Advice: To opt out or not?

The Truth In Lending Act only requires that card issuers give you 15 days notice if they're going to change the rate on a "fixed-rate" account. Some states have laws that require a longer notice. But you're still vulnerable to rate changes. A more accurate title would be that they're an "almost fixed-rate" account.

 

Found the above info online. 

Message 26 of 44
Established Contributor

Re: Advice: To opt out or not?


dee wrote:
As far as I can see and what I am hearing, they are doing exactly that.  I would post your comment/question on that exact question and see how many respond.  From what I hear/see, they are changing the contracts.

I'm pretty certain that's not the case.  I'm sure if you were to read through the agreement you signed you would find a clause basically stating that the creditor has the right change the terms and conditions of the card (i.e., the interest rate) as it sees fit.  

Message 27 of 44
New Contributor

Re: Advice: To opt out or not?


dee wrote:

The Truth In Lending Act only requires that card issuers give you 15 days notice if they're going to change the rate on a "fixed-rate" account. Some states have laws that require a longer notice. But you're still vulnerable to rate changes. A more accurate title would be that they're an "almost fixed-rate" account.

 

Found the above info online. 


 

That's different.  That's a fixed rate account, not a specific balance transer offer.

 

For example, many balance transfer offers were "6 month", "1 year" or "2 years"....  Others (the best ones) were for the life of the loan.  These specify the time period.  They are not simply called "fixed rate".  The time period is explicitly stated.  They can't legally change that time period.

 

Message 28 of 44
New Contributor

Re: Advice: To opt out or not?


GomerPyle wrote:

For your information the Credit Card Accountability, Responsibility and Disclosure Act in February 2010 forces CCC to apply payments in excess of the minimum owed to the balance with the highest interest rate, and then to other balances in descending order. I believe this change will affect your calculations.


Do you know if these laws will be applicable to closed accounts?  Or only open accounts?

Message 29 of 44
Moderator Emeritus

Re: Advice: To opt out or not?


bogfrog wrote:

dee wrote:

The Truth In Lending Act only requires that card issuers give you 15 days notice if they're going to change the rate on a "fixed-rate" account. Some states have laws that require a longer notice. But you're still vulnerable to rate changes. A more accurate title would be that they're an "almost fixed-rate" account.

 

Found the above info online. 


 

That's different.  That's a fixed rate account, not a specific balance transer offer.

 

For example, many balance transfer offers were "6 month", "1 year" or "2 years"....  Others (the best ones) were for the life of the loan.  These specify the time period.  They are not simply called "fixed rate".  The time period is explicitly stated.  They can't legally change that time period.

 


Like I said before I hope you are right about this. For your sake and others in the same situation.

 

7/09
TU-742
EQ-779

 

Time can heal all wounds and a low FICO. 

Message 30 of 44