topic Re: USAA lowering APR? in Credit Cards

USAA lowering APR?

Juan123 — Wed, 28 Jan 2015 23:00:33 GMT

I currently have a USAA card and the interest rate is absurd @ 21%

I've called multiple times about them lowering it and they always spit the same line about it being some sort of fair credit act where they are not allowed to lower interest rates anymore.

The balance is about $10,000 on the card so they pretty much have 0 incentive on lowering my interest rate anyway, my question is this:

Has anyone had success at having USAA lowering your interest rate?

I feel like they're BS'ing me really hard.

Re: USAA lowering APR?

Juan123 — Fri, 30 Jan 2015 13:26:53 GMT

bump

Re: USAA lowering APR?

takeshi74 — Fri, 30 Jan 2015 13:33:18 GMT

@Juan123 wrote:
Has anyone had success at having USAA lowering your interest rate?

Yup. They've automatically decreased my APR's a couple of times and I think I have request and received APR reductions as well.

APR's are based on your credit. If your APR is high with any creditor it's because of concerns with your credit. If your credit improves and the creditor allows for APR reductions then you may qualify for one but APR reduction aren't just handed out in exchange for time or because you're unhappy with the APR that you qualified for.

@Juan123 wrote:
bump

Don't overlook prior threads as well:

https://www.google.com/webhp?sourceid=chrome-instant&ion=1&espv=2&es_th=1&ie=UTF-8#q=usaa%20apr%20reduction%20site%3aficoforums.myfico.com&es_th=1

Re: USAA lowering APR?

Juan123 — Fri, 30 Jan 2015 13:36:23 GMT

Well the thing is that as stated in my original post, they quoted a law as to why they can't lower my APR.

Is there an actual law that requires them to deny an APR reduction or is it just shenanigans?

Re: USAA lowering APR?

Anonymous — Fri, 30 Jan 2015 16:36:09 GMT

@Juan123 wrote:
Well the thing is that as stated in my original post, they quoted a law as to why they can't lower my APR.

Is there an actual law that requires them to deny an APR reduction or is it just shenanigans?

There is no such law.

Re: USAA lowering APR?

score_building — Fri, 30 Jan 2015 20:56:45 GMT

@Juan123 wrote:
Well the thing is that as stated in my original post, they quoted a law as to why they can't lower my APR.

Is there an actual law that requires them to deny an APR reduction or is it just shenanigans?

No but asking for an APRD with a 10k balance is sorta like looking for gold at the end of the rainbow.

Prepare to qualify for a zero/ low interest promo, moving the balance from the high rate, rather than an apparently futile APRD request.

Re: USAA lowering APR?

Juan123 — Fri, 27 Mar 2015 17:51:37 GMT

I sent USAA an e-mail and heres a portion of the response.....

USAA supports many of the provisions of the new credit card practices law, because they provide more protections to consumers who use credit cards. USAA will continue to provide highly competitive credit cards that offer benefits such as low Annual Percentage Rates (APR), flexible rewards, special lower APRs for deployed active duty military members and no annual fee. And we will do all of that with the same great customer service that earned USAA a top spot on Business Week's Customer Service Champs list three years running.

Unfortunately, one of the provisions of the act prohibits us from lowering the variable APRs of open accounts. You are welcome to apply for another credit card account on usaa.com. Please go to Our Products, then to Credit Cards to apply. You might be eligible for a lower variable APR on a new credit card account.

Is this true?!?!??!

Re: USAA lowering APR?

Anonymous — Fri, 27 Mar 2015 18:04:43 GMT

@Juan123 wrote:
I sent USAA an e-mail and heres a portion of the response.....

USAA supports many of the provisions of the new credit card practices law, because they provide more protections to consumers who use credit cards. USAA will continue to provide highly competitive credit cards that offer benefits such as low Annual Percentage Rates (APR), flexible rewards, special lower APRs for deployed active duty military members and no annual fee. And we will do all of that with the same great customer service that earned USAA a top spot on Business Week's Customer Service Champs list three years running.

Unfortunately, one of the provisions of the act prohibits us from lowering the variable APRs of open accounts. You are welcome to apply for another credit card account on usaa.com. Please go to Our Products, then to Credit Cards to apply. You might be eligible for a lower variable APR on a new credit card account.

Is this true?!?!??!

I've never heard of any law that says that they can't lower APRs. Lots of creditors lower APRs for their customers so I'm at a loss to understand wht USAA would cite an 'act' as a reason for them saying no. I'm not sure that you're going to get much cooperation from them from here on.

Re: USAA lowering APR?

Anonymous — Fri, 27 Mar 2015 19:05:53 GMT

@Juan123 wrote:
I sent USAA an e-mail and heres a portion of the response.....

USAA supports many of the provisions of the new credit card practices law, because they provide more protections to consumers who use credit cards. USAA will continue to provide highly competitive credit cards that offer benefits such as low Annual Percentage Rates (APR), flexible rewards, special lower APRs for deployed active duty military members and no annual fee. And we will do all of that with the same great customer service that earned USAA a top spot on Business Week's Customer Service Champs list three years running.

Unfortunately, one of the provisions of the act prohibits us from lowering the variable APRs of open accounts. You are welcome to apply for another credit card account on usaa.com. Please go to Our Products, then to Credit Cards to apply. You might be eligible for a lower variable APR on a new credit card account.

Is this true?!?!??!

There is nothing in the 2009 CARD Act that prohibits them from lowering APRs. As a matter of fact they are required to review accounts that have had an AA rate increase every six months and lower the APR if things have improved.

Either they're being dishonest or they have really bad in house attorneys.....

Send a response thanking them for the information and politely asking for the provision in the law that prohibits it. Should be a fascinating answer....if they give one.

Re: USAA lowering APR?

Juan123 — Sat, 28 Mar 2015 14:08:00 GMT

@Anonymous wrote:
@Juan123 wrote:
I sent USAA an e-mail and heres a portion of the response.....

USAA supports many of the provisions of the new credit card practices law, because they provide more protections to consumers who use credit cards. USAA will continue to provide highly competitive credit cards that offer benefits such as low Annual Percentage Rates (APR), flexible rewards, special lower APRs for deployed active duty military members and no annual fee. And we will do all of that with the same great customer service that earned USAA a top spot on Business Week's Customer Service Champs list three years running.

Unfortunately, one of the provisions of the act prohibits us from lowering the variable APRs of open accounts. You are welcome to apply for another credit card account on usaa.com. Please go to Our Products, then to Credit Cards to apply. You might be eligible for a lower variable APR on a new credit card account.

Is this true?!?!??!
There is nothing in the 2009 CARD Act that prohibits them from lowering APRs. As a matter of fact they are required to review accounts that have had an AA rate increase every six months and lower the APR if things have improved.

Either they're being dishonest or they have really bad in house attorneys.....

Send a response thanking them for the information and politely asking for the provision in the law that prohibits it. Should be a fascinating answer....if they give one.

sent them a message stating just that, we'll see what they say.

Re: USAA lowering APR?

Juan123 — Sun, 29 Mar 2015 19:02:43 GMT

Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223

Re: USAA lowering APR?

score_building — Sun, 29 Mar 2015 19:28:25 GMT

@Juan123 wrote:
Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223

Malarkey! Just wow that they would send another response, so patently lacking in merit

Obviously the spirit of a law intended to aid consumers from abuse in lending, doesn't bar lender review for more favorable terms, but rather usurious increases. What a crock.

Re: USAA lowering APR?

Imperfectfuture — Sun, 29 Mar 2015 19:25:08 GMT

The official text says can't change terms the first 12 months card is open (unless penalty apr is induced).

This is rewording to say no.

Re: USAA lowering APR?

Anonymous — Sun, 29 Mar 2015 20:35:51 GMT

@Juan123 wrote:
Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223

They're completely wrong. There's nothing in the 2009 act that prohibits them from lowering it.

I would probably be snarky and write back something like:

" If you don't want to lower my APR just say so instead of making up an excuse. Most major banks and other credit unions are routinely lowering APRs on request up to the current date. Either everyone else is violating the law or you are reading it wrong. I suggest you have your attorneys review it again or seek competent outside legal assistance. Even a cursory review would show that terms may be changed, they merely require more notice and there are some restrictions on applying the changes to existing balances. As a matter of fact there is a provision in the law that mandates that after a default APR is imposed the lender is required to review the account every six months and reduce the APR if there are no other problems. Obviously this would be impossible if your interpretation of a total prohibition were correct."

Re: USAA lowering APR?

elim — Sun, 29 Mar 2015 20:42:40 GMT

you carrying many balances?

how much on that 10k card?

Re: USAA lowering APR?

Juan123 — Sun, 29 Mar 2015 21:33:22 GMT

@Anonymous wrote:
@Juan123 wrote:
Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223
They're completely wrong. There's nothing in the 2009 act that prohibits them from lowering it.

I would probably be snarky and write back something like:

" If you don't want to lower my APR just say so instead of making up an excuse. Most major banks and other credit unions are routinely lowering APRs on request up to the current date. Either everyone else is violating the law or you are reading it wrong. I suggest you have your attorneys review it again or seek competent outside legal assistance. Even a cursory review would show that terms may be changed, they merely require more notice and there are some restrictions on applying the changes to existing balances. As a matter of fact there is a provision in the law that mandates that after a default APR is imposed the lender is required to review the account every six months and reduce the APR if there are no other problems. Obviously this would be impossible if your interpretation of a total prohibition were correct."

thanks for that, i'm not sure if i'm ready to be snarky yet lol. I'll definitely use that if it gets to that point though.

If they are indeed breaking the law, where or who would i report them to?

Re: USAA lowering APR?

Anonymous — Sun, 29 Mar 2015 21:40:31 GMT

@Juan123 wrote:
@Anonymous wrote:
@Juan123 wrote:
Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223
They're completely wrong. There's nothing in the 2009 act that prohibits them from lowering it.

I would probably be snarky and write back something like:

" If you don't want to lower my APR just say so instead of making up an excuse. Most major banks and other credit unions are routinely lowering APRs on request up to the current date. Either everyone else is violating the law or you are reading it wrong. I suggest you have your attorneys review it again or seek competent outside legal assistance. Even a cursory review would show that terms may be changed, they merely require more notice and there are some restrictions on applying the changes to existing balances. As a matter of fact there is a provision in the law that mandates that after a default APR is imposed the lender is required to review the account every six months and reduce the APR if there are no other problems. Obviously this would be impossible if your interpretation of a total prohibition were correct."

thanks for that, i'm not sure if i'm ready to be snarky yet lol. I'll definitely use that if it gets to that point though.

If they are indeed breaking the law, where or who would i report them to?

They aren't breaking the law. There is no legal requirement that they lower your APR. They are exhibiting poor customer service by citing the Card act erroneously as justification for not lowering the APR. Your options are either stick with card as is or once your balances are at 0, to take your credit card business elsewhere. USAA is great for insurance products but they certainly arent at the top of the list for banking products.

Re: USAA lowering APR?

Juan123 — Mon, 30 Mar 2015 00:24:23 GMT

@Anonymous wrote:
@Juan123 wrote:
@Anonymous wrote:
@Juan123 wrote:
Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223
They're completely wrong. There's nothing in the 2009 act that prohibits them from lowering it.

I would probably be snarky and write back something like:

" If you don't want to lower my APR just say so instead of making up an excuse. Most major banks and other credit unions are routinely lowering APRs on request up to the current date. Either everyone else is violating the law or you are reading it wrong. I suggest you have your attorneys review it again or seek competent outside legal assistance. Even a cursory review would show that terms may be changed, they merely require more notice and there are some restrictions on applying the changes to existing balances. As a matter of fact there is a provision in the law that mandates that after a default APR is imposed the lender is required to review the account every six months and reduce the APR if there are no other problems. Obviously this would be impossible if your interpretation of a total prohibition were correct."

thanks for that, i'm not sure if i'm ready to be snarky yet lol. I'll definitely use that if it gets to that point though.

If they are indeed breaking the law, where or who would i report them to?
They aren't breaking the law. There is no legal requirement that they lower your APR. They are exhibiting poor customer service by citing the Card act erroneously as justification for not lowering the APR. Your options are either stick with card as is or once your balances are at 0, to take your credit card business elsewhere. USAA is great for insurance products but they certainly arent at the top of the list for banking products.

I'm not saying there is a legal requirement for them to lower my APR but they're standing behind a law and citing the law incorrectly. Also like i've stated before i'm not the only one that's getting this from USAA, if they don't know the law correctly who knows how many people they could be affecting and since this is happening there has to be some sort of venue i can report them to.

Re: USAA lowering APR?

Anonymous — Mon, 30 Mar 2015 00:42:58 GMT

There is no one you can report them to. They could say they won't lower APRs because the world is flat or any other excuse. They are 'allowed' to misinterpret the law as long they don't do anything that violates the act. I'm all for you writing letters to them but at some point you're going to have to move on because it's not likely they are going to change their position.

Re: USAA lowering APR?

Imperfectfuture — Mon, 30 Mar 2015 01:12:38 GMT

@Anonymous wrote:
@Juan123 wrote:
@Anonymous wrote:
@Juan123 wrote:
Heres the reply

"Thank you for your email. I will be happy to assist you with your inquiry. Pursuant to the Federal Credit Card Act of 2009, signed into law by President Obama, Federally Regulated institutions are prohibited from changing the Terms and Conditions of a credit card agreement. Thus, the reason why were are unable to change your interest rate on your credit card.

Although, we were not able to decrease your interest rate, I would extend you the opportunity to speak with our Financial Improvement Team (FIT). This team concentrates on providing you assistance in debt management, budgeting and building/maintain credit. Please feel free to contact them at -210-531-8722,Monday to Friday: 7:30 a.m. 8 p.m. Saturday: 9 a.m. 4 p.m. All U.S. time zones (except Alaska and Hawaii). Time zone is determined by your phone's area code. Alaska and Hawaii codes use PST.

Thank you,
USAA"

Is this BS or not?

Looked around for a while, looks likes im not the only one: http://ficoforums.myfico.com/t5/Credit-Cards/Asking-your-Bank-for-an-Interest-Rate-reduction/td-p/2367223
They're completely wrong. There's nothing in the 2009 act that prohibits them from lowering it.

I would probably be snarky and write back something like:

" If you don't want to lower my APR just say so instead of making up an excuse. Most major banks and other credit unions are routinely lowering APRs on request up to the current date. Either everyone else is violating the law or you are reading it wrong. I suggest you have your attorneys review it again or seek competent outside legal assistance. Even a cursory review would show that terms may be changed, they merely require more notice and there are some restrictions on applying the changes to existing balances. As a matter of fact there is a provision in the law that mandates that after a default APR is imposed the lender is required to review the account every six months and reduce the APR if there are no other problems. Obviously this would be impossible if your interpretation of a total prohibition were correct."

thanks for that, i'm not sure if i'm ready to be snarky yet lol. I'll definitely use that if it gets to that point though.

If they are indeed breaking the law, where or who would i report them to?
They aren't breaking the law. There is no legal requirement that they lower your APR. They are exhibiting poor customer service by citing the Card act erroneously as justification for not lowering the APR. Your options are either stick with card as is or once your balances are at 0, to take your credit card business elsewhere. USAA is great for insurance products but they certainly arent at the top of the list for banking products.

Though not a veteran (related, but estranged), I concur with this statement. Many reports of overly stringent, low sl's, this kinda stuff. My own credit union is kinda conservative, but they don't make up stories for not lowering apr, they just say no.