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Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008
0

Re: WHOA 29.99%!!!!

Because the new laws, once effective, will prevent a hike on existing balances, the CCC's have decided to hike the rates prior to effect and then possibly offer promotional rates after so that they are not cornered.

 

 

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: WHOA 29.99%!!!!

[ Edited ]

There are two applicable sections of the Credit CARD Act of 2009:

 

SEC. 101. PROTECTION OF CREDIT CARDHOLDERS.

ADVANCE NOTICE OF RATE INCREASE AND OTHER CHANGES

REQUIRED.—

‘‘(1) ADVANCE NOTICE OF INCREASE IN INTEREST RATEREQUIRED.

In the case of any credit card account under an

open end consumer credit plan, a creditor shall provide a written

notice of an increase in an annual percentage rate (except

in the case of an increase described in paragraph (1), (2),

or (3) of section 171(b)) not later than 45 days prior to the

effective date of the increase."

 

and

 

SEC. 171. LIMITS ON INTEREST RATE, FEE, AND FINANCE CHARGE

INCREASES APPLICABLE TO OUTSTANDING BALANCES.

(c) REPAYMENT OF OUTSTANDING BALANCE.

‘‘(1) IN GENERAL.—The creditor shall not change the terms

governing the repayment of any outstanding balance, except

that the creditor may provide the obligor with one of the

methods described in paragraph (2) of repaying any outstanding

balance, or a method that is no less beneficial to the obligor

than one of those methods."

Message Edited by creditwherecreditisdue on 07-22-2009 10:20 PM
Regular Contributor
Macroman
Posts: 129
Registered: ‎05-17-2008
0

Re: WHOA 29.99%!!!!

CCC have also decided in general that they'd like CC balances to be lower so they are encouraging us to pay off. Almost every large card issuer has done something in this regard.
Established Contributor
pattycake
Posts: 760
Registered: ‎04-30-2007
0

Re: WHOA 29.99%!!!!

I think a lot of card users will start to let some of their accounts default to get back at the CCC's, so the companies are bracing themselves.  

 

Call Citi's account retention department and see if they'll change the interest rate for you.  They didn't jack my account to 29.99% but it was raised to 18.99%.  So I called and told them that wasn't working for me and they dropped it to 11.99%.   

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
Established Contributor
Watchmann
Posts: 989
Registered: ‎05-14-2008
0

Re: WHOA 29.99%!!!!

[ Edited ]

In today's environment the answer is clear.....pay down your debt as fast as possible.  This sounds easy, of course, but a super efffort has to be made to get those balances down as low as possible as quickly as possible.  If this means cutting back on your way of living so be it.  Interest rates are going up and CL's are going down, partially through regular market forces and partly because of the unintended consequences by the laws that have recently been passed to try to 'help'.  Just being 'current' and carrying balances today is not the right answer.  More people have to go on the 'beans and rice' style of living of Dave Ramsey.

 

If people are going to let their accounts default to get back at the CCC's they are only hurting themselves in the long run.  We all got into this mess by signing for all those charges ourselves, and we are responsible for getting ourselves out.  

Message Edited by Watchmann on 08-02-2009 09:53 AM

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