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Frequent Contributor
Woolfman
Posts: 498
Registered: ‎01-29-2009

Re: Hooters Change in Terms

I got my letter in the mail today . APR going from 14.7 to 16.7 and no AF. not a big jump for me . I dont currently use it a bunch and never carry a balance . But my CL is only 1000.00 on that card. I think im gonna keep it for now since they didnt change anything with an AF .

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Established Member
Charlington
Posts: 21
Registered: ‎10-26-2009

Re: Hooters Change in Terms

I think we should all hold off on getting new credit cards until February 22,2010.
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Hooters Change in Terms


Charlington wrote:
I think we should all hold off on getting new credit cards until February 22,2010.

 

That might not be the wisest course of action.
Established Member
Charlington
Posts: 21
Registered: ‎10-26-2009

Re: Hooters Change in Terms

After Feb, 22, 2010, this will be the new normal, according to an article on msnmoney. (Six VERY GOOD REASONS to wait before opening any more new accounts.)

 

The new normal

Credit cards will be more transparent and easier to understand for everyday Americans.

Millions of credit card users will avoid retroactive interest rate increases on existing card balances and have more time to pay their monthly bills, greater advance notice of changes in credit card terms and fewer penalty fees, late charges and interest payments. The law also fundamentally changes the way credit card issuers market, bill and advertise credit cards.

Here are the highlights of the law:

 

 

1. Limited interest rate hikes:

Interest rate hikes on existing balances will be allowed only under limited conditions, such as when a promotional rate ends, there is a variable rate or if the cardholder makes a late payment. Interest rates on new transactions can increase only after the first year. Significant changes in termson accounts cannot occur without 45 days' advance notice of the change.

Universal default, the practice of raising interest rates on customers based on their payment records with other unrelated credit issuers (such as utility companies and other creditors), will end.

 

 

2. More time to pay monthly bills:

CCC will have to give card account holders "a reasonable amount of time" to make payments on monthly bills. That means payments will be due at least 21 days after they are mailed or delivered. Consumers have complained about due dates that change without notice or are moved up, giving them less time to pay their bills and increasing the likelihood of late fees.

Credit card issuers will no longer be able to set early morning or other arbitrary deadlines for payments. Cutoff times set before 5 p.m. on the payment due dates will be illegal under the new law. Payments due at those times or on weekends, holidays or when the card issuer is closed for business will not be subject to late fees.

 

 

3. Highest interest balances paid first:

When consumers have accounts that carry different interest rates for different types of purchases (i.e., cash advances, regular purchases, balance transfers or ATM withdrawals), payments in excess of the minimum amount due must go to balances with higher interest rates first.

Current industry practice is to apply all amounts over the minimum monthly payments to the lowest-interest balances first -- thus extending the time it takes to pay off higher-interest rate balances.

 

 

4. Limits on over-limit fees:

Consumers must "opt in" to over-limit fees. Those who opt out will have their transactions rejected if they exceed their credit limits, thus avoiding over-limit fees. Fees charged for going over the limit must be reasonable.

 

 

5. No more double-cycle billing and lower subprime fees:

Finance charges on outstanding credit card balances will be computed based on purchases made in the current cycle rather than going back to the previous billing cycle to calculate interest charges. So-called two-cycle or double-cycle billing hurts consumers who pay off their balances, because they are hit with finance charges from the previous cycle even though they have paid the bill in full.

People who get subprime credit cards and are charged account-opening fees that eat up their available balances will get some relief under the new law. These upfront fees cannot exceed 25% of the available credit limit in the first year of the card.

 

 

6. Minimum payments:

Credit card issuers must disclose to cardholders the consequences of making only minimum payments each month, namely how long it will take to pay off the entire balance if users only make the minimum monthly payment. Issuers must also provide information on how much users must pay each month if they want to pay off their balances within 12, 24 or 36 months, including the amount of interest.

 

 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Hooters Change in Terms

None of the enumerated are reasons to wait until February to open an account. These changes will apply to all accounts without regard to when they were opened. Meanwhile, I opened my Citi DP account in December 2008 and have a 6.99%V APR. The lowest rate currently available for a new DP account is 12.24%V. If I would have waited I would have screwed myself badly!
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: Hooters Change in Terms

Well, one reason to wait until after February is if you're looking for a rewards card.

I'm bitterly disillusioned about my once-desired Chase Freedom card, which still hasn't bothered to extend the three bonus categories to me (double points on airlines, that's it.) Other rewards cards are cutting back as well.

If I'm going to app for a rewards card, I want to have some semi-reassurance that the program won't change the moment I apply. While that can always happen, it seems particularly risky now.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Hooters Change in Terms

The problem with rewards cards is paying an APR bump for access to the program (points, cash back, etc.) and then having the rug pulled out from under you. They will curtail the program, but leave you with the APR bump. This could happen at any time. I still think the scales are tipped in favor of not waiting. What if some issuers haven't gotten around to instituting tougher approval guidelines but will do so by February 2010? In that case (which I view as quite possible) you might be approved now for a card you would not be approved for later. At the same time I am not advocating accelerating applications either. Best to have a plan and stick to it. If I had something I wanted to app for and it fit into my plan I would not wait.
Regular Contributor
Romeoo47
Posts: 201
Registered: ‎11-26-2007

Re: Hooters Change in Terms

I have officially closed my Hooters M/C.  I have called them several times over the past week and each CSR has indicated that they cannot waive the AF that is being imposed on my account starting 12/13.  So today I closed the card.  I guess I wasn't making them enough money. 
Frequent Contributor
nathan
Posts: 411
Registered: ‎04-18-2007

Re: Hooters Change in Terms

I am really contemplating to keep this cc or fire them. It is one of my oldest cc with the lowest limit of 2.5k. They increased my apr which I dont really care since I have never paid a dime in interest and want me to pay $48 af effective dec14. I will call them first and if they refuse to the waive the af, I will close it before the af hits on dec14. They have been generous to me though; i started at 1.5k about 1.5 yrs, and increased my cl twice without me asking.
Regular Contributor
Romeoo47
Posts: 201
Registered: ‎11-26-2007

Re: Hooters Change in Terms

nathan, my situation was the exact same as you except for the length of history with them and CLI.  I got the card a little over 2 years ago with a $5,000CL.  That have not increased the limit (I think it was because I got a mortgage after getting the card).  Anyway, I tried to get them to waive the AF but they refused.  I cashed in my points and closed the card.  It wasn't a hard decision for me.  I replaced the card with the Ameriprise World Elite Mastercard.  Good luck on trying to get them to waive the AF though!  Let me know if you manage to get them to do this.

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