CFNA (Firestone) raising interest rate

[tcbofade]

Holy cow!

DW and I both got letters in the mail.   They're raising the interest rate to 34.99% and charging a $5.99 monthly fee if you'd like to receive a paper statement.

Are either of those even legal in this country?

After a 22 minute hold, both accounts are now closed.

Sheesh.

[longtimelurker]

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@tcbofade wrote:

Holy cow!

DW and I both got letters in the mail.   They're raising the interest rate to 34.99% and charging a $5.99 monthly fee if you'd like to receive a paper statement.

Are either of those even legal in this country?

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According to Companies can legally charge for paper statements in most states | verifythis.com, it's legal federally to charge for paper states, and only PA and NY prohibit it under state law  (I assume that is for residents of those states rather than businesses incorporated there can't charge anyone)

[coldfusion]

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@tcbofade wrote:

Holy cow!

DW and I both got letters in the mail.   They're raising the interest rate to 34.99% and charging a $5.99 monthly fee if you'd like to receive a paper statement.

Are either of those even legal in this country?

After a 22 minute hold, both accounts are now closed.

Sheesh.

---

At a federal level yes these are legal,  and most if not all states have exceptions when it comes to rate caps and usury laws when it comes to credit card debt.

Thumbs-up for you and DW closing the cards.

Synchrony already started charging a monthly rate within the last year if you wanted paper statements.

[Creditwiser]

Deplorable.  Although they frequently offer 0% for 6 months, there labor and parts rates are high, and they often use parts of a lessor quality. I have an account with them that I keep for the - just in case I dont feel like doing it myself situations.

[Snook_on_the_Line]

At least for the Lowe's card, sync only charges the $1.99 for a paper statement in months when your balance is above $.50.  

so the months that I don't use my card, which is most of them, they don't send a statement.   

[Tdatb64]

Synchrony isn't charging me for paper statements for my Amazon Store Card.

[ptatohed]

You don't get a card like this to carry a balance at its regular APR.  You get a card like this to take advantage of the 0% offers for X months which you pay off in full before X months.  Turn off paper statements.  I don't see the problem nor see the need to close the card if you could otherwise benefit from its 0% offers just because they raise their regular APR or force you to go paperless.  

[tcbofade]

You are not wrong, but I disagree.

35%?   That's theft.

DW and I haven't paid credit card interest in years, but once upon a time, we DID have to carry balances on cards that we were paying interest on.

After years and years (13 for me, 11 for her), they're going to raise our interest rate to 35%?

That says pretty clearly that they don't value our business at all and that's OK.

$6 for the luxury of a paper statement?  That's ludicrous!

At this point, we still use Firestone for oil changes and tire rotation, but that's about it... we can afford to pay in full with other cards...

You know, ones with interest rates in the low teens and no fee for paper statements...

[ptatohed]

I hear you.  I, personally, just don't take moves like this from my card issuers personally.  You're not the only one who is being raised to 35%.  

I didn't like how my Lowe's card started imposing a paper statement fee.  I find it incredibly tacky, unprofessional, and terrible customer service.  But, I love my 5% and Lowe's rewards so I turned off paper statements and I move on.