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Established Contributor
Posts: 781
Registered: ‎12-17-2012
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Secured card deposit account interest rate....can I enforce this.

I have 2 secured cards from New Millenium bank that I have had since 2005. Both cards have the max limit of  $5000 each.

 

I was looking over my original credit card agreement and I noticed that the deposit section states that interest will be paid at 6% for first 3 months, 2% for 2 years and then 2% thereafter.  Obviously 2% is much higher than what any banks are offering today, and it seems strange that the agreement does not address interest rate fluctuationsnin any way. I noticed that on my statements it shows that the accounts are only being paid an interest rate of 0.14%. 

 

Can I force them to honor the 2% as per the credit card agreement. What would be the best way to go about this. I don't believe the interest is compounded but I've had these accounts for 8 years, so at 2% per year it is around $200 per year so it's a significant amount of money.

 



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Moderator Emeritus
Posts: 10,860
Registered: ‎12-30-2011
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Re: Secured card deposit account interest rate....can I enforce this.

I think you'd need to talk to a lawyer on this one; banks can change your account type and presumably conditions associated with it (balance requirements, fees etc) with absurd ease as I found out on my own BOFA depository accounts which changed no fewer than 3 times over a 7 year period much to my annoyance.

 

Every single T+C you clicked through would need to be looked at for starters, and then other than asking them you're stuck taking them to small claims court I suspect.  

 

This forum isn't really geared towards legal advice, also moving the topic to General.

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