they can do it.
Many companies raised from 1-2% to 3-4%, 5% is kind of high but must be there way of trying to get some of these for the life balances paid down a little.
I too got that letter.
.....was told that they could file a hardship claim for me and lower my interest to 0% with a minimum balance of $263 for 60 months. At the end of the 5 year period my account would then be closed.
I'm now awaiting word on whether I'll qualify for hardship
If you accept the hardship deal you may possibly have numerous late payment notations inserted in your credit files which could trash your credit scores for a very long time. .
5% minimum sounds reasonable to me. I looked at my Chase accounts and the minimums are 2%. I looked at payment history and I saw one payment that was about 5%.
I have one account that is 3.99% for two years and am paying it at a fixed amount per month - that works out to 6% currently but will gradually rise to be 100% for the final month when it is paid off in 19 months.
If I paid 5% the whole time, it would still have a substantial balance in two years - that is just silly!