We receive a lot of complaints about credit card companies and the number of complaints about some large banks has increased recently. Recent interest rate increases, credit limit decreases, and general mistreatment of consumers has become rampant. Consequently, many people look for a place to voice their complaints. Oftentimes, requesting a supervisor when you are talking to your credit card company can get you better results than the first person you talk to. As a rule, its always best to ask for a supervisor right away, especially if you have an important issue.
However, getting a credit card problem resolved can be difficult and many feel cheated by their credit card companies. If you fall into this category, we suggest you report your bank to the FTC, which handles consumer credit card complaints. Also, we’d appreciate it if you left a comment here so others can learn what credit card companies are doing.
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February 17th, 2009 at 2:00 pm
My HSBC direct rewards card advertised a 16% interest on cash advances. I had the card three years, and never used this. Finally, last month I took a cash advance, my first, and they raised my cash advance interest rate to 58%! When I sent an e-mail asking if this was an error, I was told that my agreement stated, (in so many words), that they could raise my interest any amount at any time for any reason, and that was that. I have never been late, never missed a payment, and almost always paid more than the amount owed. Needless to say, I will be transferring my balance to another card, and destroying this one.
February 19th, 2009 at 12:13 pm
Cheryl,
This is one of the most disgusting credit card tactic I have ever head of. I hope you are able to transfer the balance immediately. If you can provide a little more detail, I’d like to write a full blog report on this.
Thanks for sharing. Hopefully, this will keep others from using HSBC credit cards for cash advances, if not altogether.
February 23rd, 2009 at 11:45 am
My Wamu credit card is being moved to Chase on March 1, 2009. I first began this acct with PayPal, then WaMu bought PayPal. I have been with this company since 2005. This last year has been rough and I am struggling to pay down my balance. I have never been late with a payment. I have been over the limit for awhile now and could not make the extra payments to correct this. I was making the min. payments every month. This month, on Feb. 9th, 2009, I made a payment to get this acct UNDER the limit. As of this day, Feb. 23rd, 2009, it is under the limit. I get a letter in the mail telling me that they CLOSED my acct on Feb, 13th, 2009, because I was OVER THE LIMIT. Just because WaMu is changing to Chase, it shouldnt matter!!! I have successfully got the amount under the limit and they close my acct!! I dont understand this!! I am so mad at these companies. They both screwed me. I have emailed them, asking them about this and all they said was that their records show that the acct was closed on Feb. 13th, 2009. It just doesn’t make any sense to me and I am very angry. I fall into the catagory of being poor and have a very hard time trying to keep afloat.
February 24th, 2009 at 11:47 am
Cinthia,
I really hope everything works out okay. If you have good credit, you may be able to get a balance transfer to a credit card with a lower rate. Hopefully, you were not penalized with a higher rate by Chase when they closed your account.
It doesn’t seem like Chase is doing anything illegal. Within the fine print of your credit card agreement, the credit card company essentially states that they can close accounts at will. Its just a shame that the credit card companies are doing this to people who do their best to pay their bills.
March 3rd, 2009 at 11:14 am
I have had a Direct Merchants Bank MC for over 7 years and currently carry a balance of less than $1000. Effective in January the interest rate doubled to 29%. The card limit was $4400 but I just rcvd a letter from HSBC who took over the account 2 yrs ago and it states they are reducing my credit limit to $1110. The letter reads “We recently completed a loss mitigation review on our Direct Merchants Bank MC accounts. As a result of the class of accounts into which your account fell, the credit limit has been reduced to $1110.” I have never made a late payment and pay more than the minimum. This is unfair and a credit reduction of over $3000 will certainly affect my credit score! What rights do I have?? None!
March 3rd, 2009 at 5:04 pm
Chris,
This is yet another example of credit card companies punishing honest people for their less than honest mistakes. If this happened recently, I would try to get a new credit card as soon as possible, before the credit limit reduction has an effect on your credit score.
Its really unfortunate, but you are dead on about having no rights. When you accept the terms and conditions of a credit card, you are basically signing your life away. The only way to get back at them is to take your business elsewhere. (and with a 29% interest rate, you definitely should!)
Thanks for posting and I hope you can get your business away from those thieves.
March 8th, 2009 at 9:43 am
Why has there been no class action lawsuits against credit card companies who are decreasing customer’s credit scores by arbitrarily decreasing card limits and increasing interest? This is me. I have made payments on time, always paid more than the minimum (by at least 50%) and never gone past my limit.
March 10th, 2009 at 7:31 am
Sandra,
The sad truth is that the credit card companies can essentially do whatever they please to manage risk, and they appear to have the freedom to truly damage people’s credit scores with impunity. It is really upsetting to hear stories such as yours; the things these companies are doing are really unfair.
March 10th, 2009 at 9:12 am
Even though I have had a Capital One credit card for over ten years, paid on time, and paid more than the minimum payment at all times, I received notice from them that my interest rate would be tripling in May. I could accept this or close the account. In selecting to close the account, my attorney tells me that my credit score will be hurt. Is there any action I can take to mitigate the damage soon to be done? Apparently there is no regulation of this industry.
March 13th, 2009 at 12:59 pm
Pamela,
The best way to mitigate the damage is to open a new credit card account, which will increase your available credit. This, of course, is easier said than done. However, having available credit that you are not using is just about the only way to make up some of the damage done by having an account closed. ( You can view cards from other companies in the credit card comparison section of Smart Balance Transfers and apply online)
As to regulation, the consumer Credit Card Bill of Rights was passed, but does not go into effect for close to a year. In the interim, credit card companies are taking advantage of the lack of regulation to jack up rates and cut credit. Unfortunately, we essentially sign our rights away when we accept and activate a credit card. The credit card companies cover all the bases in the terms and conditions, and expressly reserve the right to raise rates at their own discretion.
April 2nd, 2009 at 9:00 pm
I have had a Chase Disney card for several years and yes I do carry a balance. I recieved a notice in January or February that the rate was going to change. I called Chase and asked. I was told that the letter was just fyi in case the rate changed. So I was given incorrect information becase when my statement came today I did see that the interest rate went up 5%. I called and was told I could either close the account or live with the higher rate.
I do believe that Chase recieved “bail out” money and this is how the company rewards it custiomers? Is there anything that can be done to gets the rates back to what they were?
April 7th, 2009 at 10:47 am
Anne,
Unfortunately, it is unlikely Chase will lower your interest rate anytime soon. When credit card companies hit consumers with interest rate increases, they tend to be unwilling to change their minds in the short term.
Ultimately, the best way to deal with the situation may be to do a 0% balance transfer to a new credit card, which will save you money on interest for a year. For example, with a 14% interest rate, you will save about $140 for every $1000 transferred.
Also, if you can get a new balance transfer credit card, you should keep your old Chase account open, as closing that account can lower your credit score.
Hopefully, you can turn this negative event into a positive. Chase has given you a reason to think about your interest rate and consider better options such as 0% balance transfers. Why continue to give them your business when another company will treat you better?
For more information on available balance transfer offers, please see the balance transfer offers section of Smart Balance Transfers.
April 7th, 2009 at 11:53 am
[...] Tomorrow, getting a 0% rate for a year may not be an option. And as these options disappear, credit card companies continue to raise interest rates on consumers with good credit and long histories with their [...]
April 8th, 2009 at 11:16 am
I have aCHASE credit card, when I applied the offer stated a fixed 7.99 rate which I’ve had for 3 years. I have never been late on a payment; however, when I received my last statement they changed my fixed rate to a variable rate which is in the 11.99% range. When I called to complain they said they said they had sent me a letter stating the change where they were pretty much telling me take it or leave it meaning I had to pay the entire balance if I didn’t agree. I never received such letter but even if I had, I would not be able to pay off the entire balance. They were not willing to lower the interest or change to a fixed rate although I’ve NEVER been late with my payments nor do I carry any other credit card balances.
April 8th, 2009 at 7:56 pm
My APR, on my CITI MASTERCARD Account was increased without me being notified. When talking to CITI Bank, I was first told that notifications were in last months statements, and I had 24 days, from receiving the statement, or until March 31, to refuse the new APR. I found my statement and called back, all of a sudden, when I told them that I had my statements, they had sent seperate letters out in January. I had asked, right from the first, why they had nor sent out seperate letters. That was not their policy, I was informed. In less that fifteen minutes, that policy had changed, letters had been sent, and my APR could not be lowered to the orginal rate by anyone. I was also asked if I thought that the supervisor, that I was talking to, was responsible for delivery of the mail and that if I paid my account balance down, they may be able to lower my APR. Does anyone belive anything that CITI Bank says?
April 9th, 2009 at 9:10 am
Rubi,
Based on changes in available credit card offers and tons of complaints from consumers, its becoming pretty clear that banks are using every trick in the book (all of which appear to be legal) to cancel fixed rate deals.
Trying to deal with banks has become futile. I’ve yet to hear from a consumer who has been able to get a rate increase reversed. The only real option is to transfer your balance (which will actually save you money in the long run) and pay down debt. The banks in our country our cash hungry, and your credit card debt is essentially an open invitation for them to eat from your wallet.
Hopefully, you can transfer your balance to a new card and pay it down at a 0% interest rate.
April 9th, 2009 at 9:16 am
Charles,
I sympathize with you and completely share your outrage. In all likelihood, Citi sent you a letter that probably looked like junk mail and you ended up tossing it the garbage. We’ve all become accustomed to tossing junk credit card mail offers in the garbage, so these rate increase notices often go unread.
Even if you do open them, you’ll need an attorney and an accountant to understand the fine print, as the true details are often hard to uncover.
The only course of action I can recommend is doing a balance transfer. This will secure you a 0% rate for a year and stop the flow of your money into Citi’s wallet. If they’re mistreating you, you might as well stop giving them your money to pay interest. That is truly the only revenge available.
April 12th, 2009 at 6:09 pm
Hi I am having difficulty with what began as a providain-bought out by Wamu-now bought out by Chast credit account. We have had this card this since ‘o5 at least. Always making above the minimums and paid off balances a number of times.
On March 10 we logged on to our account and selected the option to “pay off balance”, paying 1470.60$ to pay it off. In the next few days we recieved a payment confirmation email, a thanks for swithching to paperless statements email(wich we never did) but just disregarded thinking oh well its paid off, whatever. I just happened to be checking our accounts online and found a balance on this account-31 days after I thought it had been paid in full. The balance was 26.70 in interest added three days AFTER we “paid the balance in full” unbeknownst to us(Mind you I never recieved a paper statement OR the paperless statement they had thanked me for signing up for!!) that a fee was added, and NOT included in the payoff. Then this balance of 26.70 sat on the account for less that 30 days and we didnt know it was there, and then they charged us a 15.00$ LATE FEE!!
I was furuious always trying to maintain good credit and paying off the balance and now they report me late on a balance they unbeknownst to me had charged my account. I called them and wanted them to reverse the fees, wanting to know why they would offer a “payoff” option if it doesnt really pay off the account? they refused to reverse either charges and said our account was to YOUNG to recieve customer service! WHAT?? that statement doesnt even make sense they sent me emails as a “customer service” for payment confirmation, and for thanking me for switching to paperless statements.
Chase refused to be of any assistance in the matter at all. We did ask for, and speak to a supervisor telling them that even if lets say we “pay-off” this supposed balance of ours whose to say the whole thing wouldnt happen again-implementing fees on a account we think we are paying off. They refused to be of help, not reversing any of the charges and only giving us a address we could write our complaint to. We told them we would be writting the FTC also.
In this day and age when it is all over the news that credit card companies are in big trouble for fraudulent charges how do we fight charges that we feel is innaccurate? this is a small balance on our account and I hate to have it dammage our credit but I feel like they try to blackmale you into just paying it to save them negative reporting on your credit, but this could just go on and on and seems very underhanded. I am FURIOUS!
April 13th, 2009 at 8:08 am
Michelle,
This is one of the most absurd rip-offs I have heard of. And over such a small amount of money. It really shows how desperate the banks are for fees.
Basically, there are a couple of things you can try here, some of which should work.
First, make a payment, if only just the minimum, so your account is not past due. This can really hurt your credit score.
Second, apply for a new credit card from a different company, but don’t close this account, as that can also hurt your credit score. If there is no annual fee, simply leave it open.
Third, call customer service and do the following:
1.) If you get a foreign representative, ask for a U.S. based customer service rep.
2.) Be really nice to the U.S. rep, as its not their fault. Its unfair company policy. You want that rep to help you, so it helps if you get along with him or her.
3.) If the representative can’t do anything, ask for a supervisor. Again, be as nice as possible.
4.) If the supervisor can’t help you, ask for their supervisor. If you get the runaround, hang up and try the process one or two more times. If you’re lucky, you might get someone willing to help.
If this fails (or if it succeeds), take your business elsewhere. In the end, the only way to hurt the companies that hurt you is to take your business to one of their competitors.
I hope this helps and would love to hear from you if you have any luck.
April 17th, 2009 at 1:28 pm
I am furious that while banks are getting huge bailouts and the prime rate is lower than ever, they turn around and blackmail us for even more money in all kinds of unfair and underhanded ways. Why can’t they bring some laws that does not allow this? The credit card banks are starting to use predatory, practically Mafia lending practices – the only thing missing is someone breaking your leg for not paying enough… the interst rates are already easily comparable to Mafia rates!
I have several credit card company complaints.
One: Capital One – I have 2 cards with them, had both for several years, never late, always pay more than minimum. I got rate increase notices on both, doubling and trippling the rates and going from fixed to variable. I can “opt out” only by closing them, which I did becasue i just can not see doubling and trippling my interst payment to them. But now I will basically be paying cards I can no longer use and wil have no open credit on.
TWO: Chase, upon takign over WaMu raised the interest on that card. Not a lot, but it’s still annoying that just becasue they took over, I have to pay more. Again, never late, never overlimit, always pay more than minimum.
THREE: Juniper. These peole are the worst. I had an 11.99% rate. One month last year I went over the limit by like $3.00 for 2 days (before I noticed and paid extra) becasue I forgot about the timing of an automatic charge. Next month I paid more, but because they added in additonal fees and charges, that pushed me slightly over the limit again – and then they raised my interest to 28% because I was over limit “twice”. But the second time it was all their extra charges that pushed me over!!!! Then even after several months of being on time and under the limit, they would not budge to lower it. I transfered most of it off to my other cards (as much as I could, but I did not have a lot of credit open and I can’t seem to get another card). Now that my balance is down to a grand or so with them, they finally lowered it by 2%. TWO percent!!!! After they suddenly raised it by 25%, now that I paid 75% of teh balance off they “reward me” by going down by 2%!!!
These credit card banks ENRAGE me. My blood pressure goes up dealing with them. You get to the point that you really just want to do a bankruptcy because they make it impossible to pay off your debt by being so greedy and unfair. They push us into a corner, they don’t care what they do to us, so why should we care? And no one helps us, because they are free to do anything they want, legally. We need legislation to put limits on what they can do. There should be limits to how much over the Prime Rate they can charge – like maybe 5% over the Prime Rate max. It’s ridiculous that the Prime Rate is near 3% and they charge upper teens and twenties % interes, 6 or more times the Priem Rate!!! There should be limits to fees, limits to how often interest rates can be rasied, and by how much, etc. As it is, the consumer gets really nailed by them. And our only option seems to be to bend over.
April 17th, 2009 at 1:35 pm
PS: Don’t even get me started on the foreign customer service reps. After taking all our money, they won’t even provide U.S. jobs with it. And you can hardly even understand those people and they don’t seemt to understand you, all they do is read their dumb script “I would be very happy to help you with that” but they do not help at all.
April 17th, 2009 at 1:45 pm
And by the way my son was a victim of the credit reduction trick – suddenly several thousand dollars in open credit disappearing, with his limits coming down to just above his balance. And unused cards being closed. He has never been late, never over limit, alwyas paying more than minimum. They find a way to mess with just about everyone who uses credit.
April 20th, 2009 at 8:08 am
Agnes,
Three companies, and each seems worse than the others. I haven’t heard much about Juniper before, but I’m not surprised they raised your rate to nearly 30%. These companies are looking for any reason to put customers into default, so they can charge loan shark rates.
Chase and Capital One have had a lot of complaints lately, although it seems Capital One has just started playing the rate increase gain. Consumers with any Capital One debt should be wary.
I’m really sorry to hear how poorly you’ve been treated and hope you can get a 0% balance transfer to help get you out from under the finger of these extortionist interest rates.
April 20th, 2009 at 7:50 pm
At least by reading the comments, I know I am not alone in my fury. I had a Chase credit card, and was never late on a payment. My last statement arrived two weeks late, several days past the due date. I called to explain, but they refused to waive my fee. I asked to speak to a Supervisor, who offered to waive the increase in my interest rate that was triggered by the late payment, but refused to waive the late fee. I got really angry, and told him I was canceling my account, and paying off the balance. I knew this would hurt my credit score, but I was so angry, I just wanted to reject them. I just received my last statement, and there is an ADDITIONAL $37 fee for the interest charged during the two weeks I DID NOT EVEN KNOW I WAS LATE FOR! I called again, and of course, they could care less, and refused to do anything about it. I told them I was reporting them to the FTC. He didn’t care.
April 21st, 2009 at 9:04 am
Fran,
It is hard to keep from getting mad in these situations, but you are one of the few people I’ve heard from that was able to get their rate increase pulled. I understand your frustration, especially with the additional fees. Hopefully, if this happened very recently, you may be able to get a new credit card and do a balance transfer. This might help prevent some of the damage to your credit score, because it will increase your available credit. On top of that, you’ll also benefit from having a 0% APR.
These are tough times for all of us and our banks are not making it any easier. We’re all getting robbed by our banks, but your post should give hope to others that it is possible to get rate increases stopped.
Thanks for sharing and all the best.
April 23rd, 2009 at 1:06 pm
I had an account with Compass Bank and had used them before for a balance transfer that I paid off. I got an offer from them for 6.99% fixed for life on a balance transfer, with a 4% fee. I mistakenly used another check they had sent which had expired when I did the transfer, and I got my statement to find a $380 fee for using their check, 21.99% interest rate, and of course all this had put me over the limit on the card, so they added a $39 overlimit fee. I called them immediately and discovered my error, and with my excellent credit and good history with them, asked them about backing out some of the over $500 in fees they had charged me. Meanwhile they offerered me a six-month at 6.99% rate, and charged me twice for a “rate reduction fee” of $75! In the interim I made an online payment of $555.66 to pay all the fees while I was waiting to see if they would work with me on this. The supervisor was never available, and no one could ever help me. I moved the balance to another card and have sent them their card in the mail telling them to close my account. Personally, I don’t care if they report it, but I’m not paying another dime. I will add my side of the story to any report they make and let the other creditors decide. I am 46 years old and have built my credit up over a 20 year period, only to have these clowns take advantage of an honest mistake I made. They will not get another dime out of me. Watch out for Compass Bank.
April 24th, 2009 at 7:54 pm
Because this is such an extreme case, I am currently investigating this situation. I have attempted to contact Compass bank, but my call has yet to be returned. I am hoping to bring this issue to light and hoping we can get you some kind of renumeration from this bank.
May 10th, 2009 at 5:34 pm
I am trying to make a payment over the phone with Sears and CitiCard, because, I changed my bank info on the Sears site and it won’t let me place a payment for 6 business days and CitiCard because they said they felt there was fraudalent activity and replaced my card (which I activated). So I called both companies to make a payment over the phone and they wanted $14.95 for me to PAY THEM. Please Obama do something with these Credit Card companies, they are ripping off the American public and getting away with it.
May 11th, 2009 at 12:20 pm
Citibank is one of the most underhanded companies I have ever dealt with. I had signed up for one of their Drivers edge rewards points credit cards at 7% within two months the rate jumped to 12% no reason given. Next thing you know I have charges for their credit card protection being added which I never signed up for!! I never even knew they added this. After I attemtpted to collect on my points rewards I was told all these stipulations applied I could never get any of their worthless points. Further fraud occured when the rate jumped to 28%. I did have a late payment but was current a majority of the time. Come on in these economic times everybody forgets something. After closing the account I continued to get billed for this Protection Service to the point of being billed interest and late payments AFTER I closed the acccount. I spoke to their worthless representative and was told to file a fraud report for those charges. I received a letter stating I had forfeited those charges because I closed the account.And that was that!!!How rotten can you get!!! Citibank sucks I hope they rott in hell
May 12th, 2009 at 8:31 am
George,
Unfortunately, you got a strong taste of the old Citibank. Prior to being government owned, they were notorious for these issues. Lately, though, I really think they are doing what the government tells them to do, and that includes treating customers like human beings.
Nevertheless, Citi may never recover from its old escapades. You were clearly abused by every loophole they could find and I’m sorry you’ve had to waste so much money because of this.
May 12th, 2009 at 8:35 am
Marc,
Gonna send you an email with this info in case you don’t check back. I strongly suggest calling back again and doing the following. It may be difficult, as I understand you are mad, but it should work.
1.) Call customer service. If you don’t get a US based rep, ask for one.
2.) Be really, really polite. Explain that an issue with the website is the reason you need to pay by phone.
3.) If your Rep can’t help, ask for a supervisor.
4.) Do the polite explanation. If this doesn’t work;
5.) Repeat the process. If it doesn’t work, and you risk paying late, your best option is to pay the fee. I know its a total ripoff, but if they raise your rate, 14.95 will seem like a free lunch.
May 12th, 2009 at 9:20 am
I heard back from Marc and he managed to avoid the payment fee–but only by paying his balance in full!
He wrote, “More or less the steps I followed. I finally threw a fit for charging me a service charge for me making a payment to them. That worked with CitiCard and they said they wave the fee. Sears is now managed by CitiCard as well, but they wouldn’t budge for reasons that made no sense, so I paid the entire credit card off and they told me since I was paying it completely off they would not charge a fee (which makes even less sense – but not going to complain). ”
Is this what its come too? Pay us everything you got or we’ll nickle and dime you to death. I can’t imagine how any of these companies expect to keep good customers such as Marc who want to pay their bills. If they get everyone who can pay close accounts, they’ll be left with deadbeats. Perhaps that’s what they deserve.
May 13th, 2009 at 3:28 pm
I am a longtime card holder of a chase credit card with a rate of 9.99% I had heard horror stories about Banks raising the interest rate and fees on customers that have good credit and have never been late on payments. I was awaiting the little notice that this was going to happen to me, but I never receive this then this month’s bill show the new interest rate at 17.24%. I called and ask for a supervisor. I talked with John and he said he would see what he could do. He then stated that they had sent out a notice in Feb.09 that as of March 09 the rate would increase. I told him that this notice had never been delivered to me. I asked why my rate was increasing since I had never been late and have always paid more than the amount due(sometimes as much as three times). He said that they we doing it across the board. I told him that they had sent out the April bill at 9.99% and then the may bill had a charge shown as April fin chrg adj.This was on a bill that I had already paid. I then ask what he would do on the rate and he said that if I had contacted him before March09 he would have closed the account at the old rate and I could have paid it off at the old rate. I told him it was pretty damn obvious that March had already past. He then said he did not have to listen to cussing. So I then told him to close the account and place it somewhere else. This is ridiculous how these insitutions abuse consumers. The best thing is to close your accounts with the various banks and let them die on the vine. Let them starve with the uncredit worthy people that they issue cards to that do ever intend on paying them back.
May 14th, 2009 at 10:14 am
Louis,
I am sorry to hear about your predicament and I fear I will hear from a lot more customers who are about to get bad surprises like this in the mail. As I’ve told many others, if you have good credit, take advantage of a 0% balance transfer and move your debt to a different credit card.
Unfortunately, if they will not give you back the old rate, closing your account can negatively impact your credit score, which will make it tougher to get a new card with a 0% introductory rate. Thus, if you haven’t closed the account yet, you may want to consider keeping it open to protect your credit score.
Lastly, I know how angry you must be. However, you may want to try to contain your anger and try calling again. In the past, being nice could help you get somewhere with credit card companies. And with so many angry customers calling, a representative may be more receptive to your situation if you are extra nice. At the least, its worth a shot.
Again, I’m sorry this happened and hope you can find a better credit card company to do business with that will provide you a lower interest rate or a 0% rate on balance transfers.
May 14th, 2009 at 1:13 pm
I just got a letter yesterday from HSBC notifying me that my credit limit had been reduced from $3000 to $605 due to a serious delinquency or change in credit score. I was well under the credit limit to start with, have never been late on a payment, and my credit score is good and has not changed. I recently made a sizeable payment on that card just to get close to paying it off. When I called to find out the reason for the reduction, no one could tell me. They referred me to equifax, even though their letter says that they, and not equifax, made the decision.
May 15th, 2009 at 9:57 am
Mary,
I would use a free credit report trial and check all three of your credit scores. Perhaps something random, like an old bill or forgetten store credit card bill got sold to a collection agency that reported you as delinquent. Also, you may want to apply for a new credit card to get access to more credit. Perhaps another company won’t be as harsh as HSBC.
May 20th, 2009 at 8:27 am
I applied for Old Navy credit card at Old Navy store in Houston in Nov 07. I was given paper card and told I will receive permanent card and statement in mail. I never received the card or statement for card amount $ 129. In Feb I went to same Old Navy store and inquired. They said it seems card is lost we will send new card and statment also they assured me there will be no late paymenet. I received statement and card promptly in Feb 08 and paid off amount immediateley.
I have noticed the account has been reported as 30 day late payment to credit reporting agencies. I reported to Old Navy and they said they are writing to three credit reporting agencies to correct the record and remove this negative account because it was their fault. I also lodged complaint with these credit reporting agencies. So far inspite of Old Navy telling me they have tp remove late payment from record. Reporting agencies keep telling me they have inquired and are told by Old Navy late payment stays on record.
Please avdise what I can do further to get this corrected. It is affecting my credit score.
May 20th, 2009 at 9:51 am
Sanjeev,
In these type of situations, you are going to have to make a lot of phone calls. In order to get ths fixed, you’ll have to call Old Navy to get them to contact the credit report agency. If you can get them to put something in writing, that would help. You may get customer service reps who simply say what you want to hear to get you off the phone, but do nothing to help you.
You should also keep calling the credit agencies that show this delinquency. You can add a customer statement to your report while you wait for this to get fixed, though this won’t really help your score much. In the customer statment, you can explain your situation.
Also, if you have paid your account for the charges you made (not the late charges) that should get reported to the credit agency.
Unfornately, getting credit mistakes removed can be a huge hassle. You really have to be persistent with both the company and the credit agencies.
May 21st, 2009 at 10:36 am
I just received a letter from Capital One stating my CC interest rate is increasing from 14.5% to 22.9%!!!
I have never been late on a payment and usually pay off the balance before interest is due. I have had a $0.00
balance for the last 5 months on interest due. This is ridiculous, the Mafia loan sharks give better rates than this!
If I was to loan money at these rates I would go to jail for loan sharking!! Something has to be done to control these banks from doing whatever they please.
May 27th, 2009 at 5:32 pm
I have had a business credit card account with ADVANTA for several years now. Recently I have had a zero balance on the card yet I discovered a random $35.00 charge to my account. I called and asked about this and insisted the charge be removed. I was told that the $35.00 was a rewards charge that had always been on the card. I know this is not true because I kept my original agreement and I asked that they mail me the document that stated there would be an annual fee on the card for a rewards program. The documents they sent me were totally different than anything I had ever seen. I would and have never signed up for a REWARDS program on any card. Especially one that I would have to pay for. Anyway today I get a letter in the mail stating that “Your Advanta Business Card Account is funded by an independent trust which owns the balances you may owe on your account and provides funding for new transactions. We expect the trust to stop funding activity on our accounts. The trust also restricts our flexibility to fund activity on your account (remember I have a zero balance on this account). Unfortunately, as a result, effective May 30th all Advanta Business Credit Card accounts, including your account will be closed.”
Nice huh? Great way to do business and what was that bill that recently passed? Anything in there about closing 0 balance cards? This totally blows. I tried to call customer service but of course got a message saying they weren’t available to take my call even though I called at 6:00 pm and they supposedly stay open until 8:00pm.
Great way to do business ADVANTA. Let’s see how many people I can let know about this strategy.
June 8th, 2009 at 4:05 am
hi this is ritesh would like to complain against ABN AMBRO bank for mis leading people throught there collection agents in the month of august i had done a settelement with one kavita choudhry who claimed to be working with the bank i payed her the settlement amount after that for the next 6 months i didnt recieve any statement form the bank then suddenly in the month of january another personn bu the name of jeet asked me to pay 5000 more as the seetlement amount was short of 5000 then again i didnt recieve any statement then again in the month of may i am getting a call that i still have to apy the bank 40000 and the best part is after a few days all the contact numbers are not available i guess the bank is really minting money for a long of people like me
June 8th, 2009 at 9:35 am
Ritesh,
Sorry to hear about your problems. It looks like credit card companies around the world are attacking customers, not just in the U.S.
June 14th, 2009 at 5:26 am
Chase Credit Card customer since ’06.
Fixed APR of 8.99%
NEVER, EVER late on any payments.
NEVER, EVER over-drafted my bank account.
In Feb. 09 Refinanced home mortgage @ 4.275%. GOOD CREDIT score, it has actually gotten better since the home refinance.
Here is the damaging unethical new practice of Chase.
Promotional “Rate Reduction for our most Valued Card members” (BEWARE!!!)
0.00% fixed APR until Feb. 2010 when you use the enclosed “Special Rate Checks.”
-Access extra cash
-Transfer high APR balances
-Pay unexpected expenses
-Use for large purchases
My card info
Credit Limit: $5,500
Previous Balance: $2,700.11 (NEVER over 50% of Limit)
Last payment: $1,350.11
Current Balance: $1,350.00 (Less than 25% of Limit)
I all but exhausted my bank account to pay (cash) to my Chase balance and cut it in half.
After checking on line to make sure that the payment had posted to my Chase balance, I deposited $1,350.00 in my bank using one of the promotional 0.00% checks from chase.
After checking on line with my bank, make sure that the Chase check had been posted, I proceeded to pay off two “high APR balances” (on line) in the amount of $1,200. I also paid my Gas, Electric, and two other credit card payments. Leaving only $124 in my bank.
A few days later I received a letter from Chase stating that the check of $1,350 was declined and that they had made the decision to change my credit limit to $1,800 due to late payments or not paid as agreed on accounts. (THIS IS FALSE!!! I have NEVER been late!! on any credit card accounts, never!!!)
My bank now has me over-drafted on every payment that I have made. Chase has my CASH, with which I could have paid all payments with absolutely no problems.
After HOURS of phone conversations with multiple Chase reps, I was transferred to (Keith) high level management in Delaware. After his thorough examination of my account history and current credit report, he admitted that there was no reason to change my credit limit or available funds and that he would correct it.
Sounds like problem solved? Read on.
My bank still has me seriously over-drafted. After talking with my bank, a possible solution was recommended. The bank suggested that I call Chase and have them reverse my $1350.11 CASH payment back into my bank account to cover my over-drafts. Sounds do-able? Read on.
I checked my Chase account to make sure the Delaware Manager had repaired and put my limit back at $5,500. Bingo!! Looks like he had kept his word.
I called Chase back to verify that their check would now be honored and solve the problem. After riding the phone merry-go-round I finally got a manager,(Helen) in Orlando, FL. I asked to have my $1,350.11 payment reversed back to my account to avoid the train wreck that Chase was about to cause and to call my bank and correct their mistake. Helen said that the payment COULD be reversed but would take up to 15 DAYS!!! (not an option). Helen said that I should have the bank just run the check through again and that the funds ARE available and your bank can call us to verify. Solved?
Looking at my Chase account online today, Saturday the 13th of June 2009,
Account status as follows:
Credit limit: $1,700
Balance: $1,350.00
Pending Charges: $2,700
Available Credit: $0
On Monday, I will most likely be in a financial train wreck. My damages will likely be in the hundreds of dollars.
And….No funds available to satisfy the over-drafts and penalties
My hard earned good credit is headed toward ruin.
All because I was told, in writing, that I would receive “Special Savings as a Most Valued Customer.”
If I issued a check from my Bank and then later stopped payment, I could be prosecuted for check fraud.
I need legal help.
I have been set up and torpedoed!
Chase is aware of their error(s) and could fix this travesty but they have not.
Is this legal what they have done to me?
Consequences and damage:
The potential for my financial destruction is in the works and Chase has not made their check good.
They have admitted that they had no legitimate cause for denial of payment.
Do I have any legal protection or recourse for what Chase has done to me?
June 15th, 2009 at 10:06 am
I am really sorry to hear about this–and I wish there was a solution readily available. In my opinion, it looks like one department of Chase sent you checks while a separate department decided to cut your limit. If this were done intentionally, it would be one of the most abhorrent credit card tactics I have ever read about. In an ideal world, Chase would have recognized the check. The run around they have given you really shows how useless and unreliable credit card companies have become.
The sad thing is the fact that they have probably done nothing legally incorrect and yet managed to throw you into financial disarray–I’m sure all the t’s were crossed and i’s dotted before this was done. Nevertheless, they are showing blatant disregard for the consequences of their actions.
The only positive I can take from this is that others will read it and hopefully avoid getting into such a situation. But this should not be the case. You should have never been put in this situation, let alone penalized hundreds of dollars in fees. I am really sorry and hope you can somehow get Chase to provide something you can use at your bank to get some of your fees reduced. This is really a sickening story–it really seems like good, honest people like yourself are the new “revenue sources” credit card companies are using to make up for the money not being paid to them by deadbeats.
June 18th, 2009 at 11:04 am
I took out a loan for $1100 two yrs ago from HSBC to purchase a computer from HP. I have paid faithfully with the exception of being late one or two months. However, I just found out that HSBC has been charging me late payments for more than a year. My payment is $28.00 per mo. and they charge 39.00 for the late fee plus another 15.00 for finance charges. After paying on this account for two years and making payments in excess of $100 at times including $200 just last month, I am still owing them more than 1100.00. This company is a class A predatory company with an outrageous record of deception and fraudulent manipulation in ripping poor, defenseless people and they need to be put out of business.
B. Harrigan
June 18th, 2009 at 11:05 am
I am asking other people who have been ripped off to come forth and lodge a complaint with the government and put these creeps out of business.
June 20th, 2009 at 6:23 pm
Beverly,
This is a really disgusting story. I can’t imagine what loophole they are using to charge these fees. Perhaps you can call them, or your state’s attorney general!, and see if you can get some assistance. This ranks as one of the most disgusting credit card stories I have ever heard.
June 23rd, 2009 at 8:11 pm
I loathe Chase Bank. I keep reading over and over and over that they have done nothing “legally wrong.” It is disgusting that the people who continue to pay their bills on time are being punished by this company and others. I have a balance on my Chase credit card account at the promotional fixed rate transfer balances that CHASE offered to me for life. I pay my bill on time. They sent me a notice stating that my minimum monthly payment would increase from 2% to 5% which more than doubles my minimum monthly amount. When I called Chase, a representative stated the reason for this change, which they can do at any time according to the agreement, is my account is “not profitable.” UNBELIEVABLE. THESE COMPANIES ARE NOT SATISFIED IF YOU PAY YOUR BILLS ON TIME. THEY WANT YOU TO PAY 30% interest and remain in debt for the rest of your life. CHASE knows that anyone who has a high balance on their card with a high monthly minimum that consumers cannot pay their new amount owed and thus forcing customers to lose their promotional rates and jacking them up to who knows what at their discretion. This is why people in this country who are trying to do the right thing are being screwed. These companies have got to be stopped. I bet my minimum monthly payment would be less than 1% owed on a 30% interest rate initiated by Chase. I WILL NEVER DO BUSINESS WITH THEM. Talk about taking advantage of people. They should not have received a dime of the bailout money. Additionally, they wanted to say that our new President doesn’t want Americans to charge anything frivolous and live on credit. Apparently these very people have never gone through a nasty divorce and had to pay legal fees, etc. Not everyone abuses credit cards but some people do have mishaps in their lives causing them to incur credit card debt.
June 23rd, 2009 at 9:26 pm
I’ve been receiving some 0% balance transfer offers from Discover Card in the mail. I’ve never been a Discover customer. My credit score is 730.
I’ve got a balance of $15,000 on the card you aren’t supposed to leave home with. They recently cut my limit and are charging me 27.99% interest! Based on reading your website, it seems that I should take Discover up on their offer, and perhaps apply for the Citi offer, then wait to see what kind of a credit limit I get before transferring the balance. Any chance that Amex will lower the rate if I contact them and tell them of my intention to transfer balance, or is that a waste of time in your opinion? Any suggestions appreciated.
June 25th, 2009 at 9:16 am
Jamie,
I’m sorry to hear about your situation. It really seems like good customers are the new cash cows for credit card companies. And while the banks are surely to blame, the new credit card laws aren’t helping either. Because they don’t take effect until next February, more and more credit card companies will be throwing good customers under the bus. Its really shameful.
June 25th, 2009 at 9:18 am
James,
In the past, calling up might have worked. And its still worth a shot. But from what I’ve heard lately, Amex will probably be very happy to give your balance to someone else and take their cash.
However, if you cannot get a balance transfer for the full amount, you should harass them about lowering your rate. 28% is loan shark territory.
June 25th, 2009 at 12:26 pm
We received a notice from Chase that our minimum payment was going to increase from 2% to 5% of the new balance due. This doubles the payment. Have excellent credit, have no late pays, no missed payments, pay extra when we can. They tell us that it is due to the economic downturn. How can demanding more help consumers? We were told that we have a month to figure it out, pay it or suffer the consequences. They have no offers or options for us, we should call consumer counseling or transfer to another credit card. Needless to say we are closing all Chase accounts.
July 1st, 2009 at 12:45 pm
We moved and didn’t receive my Disney Chase Bill for the month of May. I called on the 1st of June about it. The payment was due the 1st of June so I paid it over the phone that day. The customer service representative told me there would be no late fee. When I got June’s statement however, there was a late fee. I called customer service about it and they said they could not remove the late fee. I talked to a supervisor and they refused to remove the late fee as well. The payment went through on June 4th only a couple day late and yet they will not remove the late fee. I made the payment on time June 1st the day it was due but because the payment didn’t go through until the 4th of June they refused to remove the late fee. It is rediculous. Who do I talk to in order to get this problem fixed??
July 1st, 2009 at 3:28 pm
Unfortunately, you’ve talked to just about everyone who could help. A strategy that used to work is the wash, rinse, repeat-if the first set of people you talk to can’t help, call again. Lately, however, most banks have no interest in keeping their customers happy.
Also, be sure to check your interest rate. Chase may have used your late payment as a reason to put your account in default, which could lead to an interest rate of 29.99% or more.
July 3rd, 2009 at 12:30 pm
Read a selection of the worst credit card complaints and credit card practices from 2009
July 7th, 2009 at 12:13 pm
In April Emerge sent me a notice of changes for my account with instructions on what to do if I didn’t want the changes. Since they were changing my interest rate from 10.6 to 29.9 percent I called and cancelled the card thus (according to their own printed material) keeping the terms of account from changing. I noticed on a subsequent statement that the account was not closed. I have been calling repeatedly ever since and just get sent back and forth between departments. They have now closed my account but too late to keep my old terms in effect and nobody seems to be responsible for taking care of this consumer complaint. On a side note some reps will give me their employee number and some won’t.
July 7th, 2009 at 12:22 pm
Robert,
I’ve never heard of Emerge, so I don’t know a particular remedy. Have you asked to speak with supervisors? If the reps won’t put you through, I would threaten (and if no action is taken) follow through by contacting your state’s attorney general as well as the attorney general in the state they are located.
I’m of the opinon that large Federal agencies are overwhelmed with complaints and you may have more success with a local agency.
Also, if you called them with a cell phone to cancel your account, you should have a record of the date you called. You might be able to challenge their assertion that you did not opt out, especially if they are denying that you ever called.
July 7th, 2009 at 12:41 pm
A new article about an opt out request “lost in the mail” by a credit card company.
July 7th, 2009 at 6:45 pm
I have been a Discover card holder for thirteen years and recently was shocked by their fraudulent offer to decrease my APR. In January of 2009 I receive a call asking why I had not been using my card. When I explained that the APR was too high the representative offered to lower the APR to 11%. She also signed me up for a “Credit Tracker” program for $7.99 a month. I gladly began using my card and was shocked when I noticed the APR at 22.24%! I called and was told that my account APR had only been lowered to 19% (not the 11% as promised). It was also explained to me that my APR rose from the 19% to the 22.24% as a result of company policy.
Firstly, I am POSITIVE that the APR offered in January was 11%. I am truly amazed that a Discover representative would lie about my APR in order to get me to use my card!!! When I complained to customer service they were unwilling to even investigate the situation. Secondly, I don’t understand the justification in increasing my APR when I paid on time for years. Customer service said they the APR increase was not a reflection of my payment history or credit rating – they merely increased EVERYONES RATES due to a “company policy.”
I closed the “Credit Tracker” program, closed my Discover account, and made a formal complaint with the FTC.
July 8th, 2009 at 9:42 am
This is only the second complaint this website has received about Discover this year, which leads me to believe a customer service rep looking for commissions may have been behind this situation. As a whole, Discover has proven to be far and away the most consumer friendly credit card company during the past year.
July 10th, 2009 at 1:31 pm
We have a Chase Credit Card for well over 15 years and both of us just lost our jobs. I called to see if they had a hardship program and was told that the only thing they have is to close the account and set up a payment plan. I told them that I would rather not close the account and I would continue to make the minimum payments due to keep the account current. Then he told me to hold on while he checks one other thing and came back and said that they have no choice but to close the account because of our situation. I believe that this is discrimination against us and they had no right to close the account (but credit card companies can do whatever they want, right?) Well without hesitation within the next few days we got a letter stating that they closed our account, which shows very negative on our credit score and if I don’t pay that will even lower our score further. What are people supposed to do in the land of opportunity!!! Do we have any rights at all from credit card companies???
July 14th, 2009 at 10:08 pm
I have had a WaMu card since 1999, which recently migrated to Chase. The highest interest rate that Chase charges on their Credit Card (per their associates and contract) is 29.99%. My card has 30.24% on purchases and 14% on cash advances. I have contacted them on numerous occasions that I am paying $500 every month in payments and requested that my interest rate be reduced or matched to my cash advance rate.
I also contacted them that I would like to clear my balance to improve my credit rating and also push towards an interest rate reduction based on good payment and loyalty (this request was rejected as well).
Now that I paid the balance and started withdrawing cash and paying it off every month (versus making purchases; since interest rate is better on cash advances) – I received a letter today stating effective August 1st 2009; my contract will be changing on cash advances to either 1) No Cash advances or 2) 5% additional charge on cash advance and a reduced limit on Cash Advance 3) They now also have the right to reduce my credit limit.
I had paid this off to improve my credit score and rating – by showing large credit lines w/ little or no balance and also show length of credit history.
I am now cornered – since I can’t be hot headed and shut the account as 1) It will show that I do not have credit and 2) I will not be able to show the length of time of my oldest account
With Chase getting a government bailout – isn’t there a way to get the customers “might” and “right” back? It seems they can bully and dictate terms and also jeopardize ones ability to earn more credit i.e. business credit or home purchase. You do the right thing and even then they control not just their product terms but also jeopardize your rating and any future development (business investment and return). What happened to the US being the land of opportunity????
How can people start businesses and get loans to support the investment if everything hinges on your credit rating? I have not done anything wrong; in fact I am using cash to pay of my debt to show ability and improve my credit rating. Yet because of CHASE I will now NOT be able to improve my living by going into a business venture. I hope there is a way to reprimand CHASE for this injustice.
July 15th, 2009 at 11:20 am
Mr. Khan,
While I sympathize with you position, I just wanted to give you a heads up on cash advances. While it is absurd your interest rate was lower on those transactions, they were still charging you at least a 3% fee upfront. However, you should just pay the card down, keep it open for the sake of your credit score, and open a new account to use. As long as you have not been late on a payment during the past 12 months, someone will give you a better interest rate.
July 15th, 2009 at 1:46 pm
Appreciate your response #63 – I did pay down the entire balance. Although, they immediately reduced the credit by 50% and stated that in August they may lower it even more (they sent in a change of terms letter).
This screws up my credit rating – since my credit line was reduced. The whole purpose of paying them down was to improve my balance to credit line ratio.
July 15th, 2009 at 4:13 pm
These credit line decreases are becoming a bigger problem for people who pay off their balances. If I were a conspiracy theorist, I would say the banks are doing this to lower credit scores so that they can a.) charge more money to lend to you or b.) pretend they are lending to qualified borrowers, and that there aren’t that many qualified borrows.
But conspiracy or no conspiracy, these tactics are hurting responsible people who have the integrity to pay their debts.
July 15th, 2009 at 6:25 pm
Chase sent me a blank balance transfer check with my July statement, offering .99% for 6 months. My available credit on the same statement shows $10,484.
I made out the check for $1500 and deposited into my Chase (formerly Washington Mutual) checking account.
I tried to use my Chase credit card the next day and was declined. I called Chase and was told that they lowered my available limit by $8000 with no notice whatsoever. They said they would send me a letter in about a week. In the mean time Chase Credit bounced THEIR check to Chase Bank, causing 5 of my personal checks to bounce, and leaving me with a negative balance.
July 16th, 2009 at 12:04 pm
B Morgan,
I am very sorry to hear about this and was afraid this would be happening. I wrote recently about Chase and other banks using fine print to state that they reserve the right to decline all cash advance and balance transfer checks, even though they send them to you. This practice is not only unfair, but utterly absurd, and it will cost consumers dearly.
July 16th, 2009 at 8:49 pm
I have had my chase credit card for 6 years never late and pay off completely every year. i just found out my apr went from 6.99% to 15%. I called and asked why and he said the government has issued new laws in effect by 2010 that they are requeired to raise my rates and every credit card company has to do this per the government. Is this TRUE?
July 17th, 2009 at 11:44 am
The government is causing credit card companies to do this, but they are in no way forcing credit card companies to do this. Whomever you spoke to was clearly lying.
July 17th, 2009 at 2:11 pm
Someone took 2 cash advances out on my HSBC card. HSBC called me immediately to ask if I’ve been out of the country (which I have not) and identified it as fraud. They removed the charges from my account BUT have failed to remove the finance charges for the cash advance. I have been calling and speaking to different people in the fraud department for over 6 months now and it still isn’t fixed. Every month they keep charging my the finance charge on the money I didn’t take out. Now on my new statement they have totally messed up my account. I called today and was told they would fix it. At what point do I have a lawsuit against them? Isn’t it illegal to keep charging me interest on a cash advance they confirmed was fraud?
July 17th, 2009 at 4:52 pm
My citi card, which I have had for probably years and hav never made a late payment, decided they wanted to raise my APR fro 14.99% (which is still high ) to 29.99%. I could understand if I late on my payments or not making payments at all. Then to top it off when I called the “customer service” witch was very rude and I felt like I was being told ____ off by her! I am so angry that this is happening and I can see that I’m not the only one and to top it off, I cant get the damn complaint form to work on my computer so I can file a complaint! PERFECT!
July 17th, 2009 at 6:53 pm
If I opt out of Chase Bank’s generous offer to increase my rate from 7.99% to 12.24 %, what is the likelihood they would demand the entire balance due in as short a time frame … say 30 days or as long as 1 year? Not sure if I am better off transferring the balance to my new card which I scored at 0% for 12 months but will not be able to pay off in 1 yr – at which time the rate will go to probably 8.99%… sheesh this is just a nightmare. I have really bad feelings towards banks… now I understand the feelings people had towards banks after the great depression.
July 18th, 2009 at 11:50 am
Chase is pathetic, and the way they are responding to the new consumer protection laws is disgusting.
I opened up a Credit Card with Wamu several years ago. My credit wasn’t the best, I was working to improve it, and the WAMU credit card offered the option to see your Trans Union credit score every month.
Since then, my credit has slowly been improving, and I have not had a late payment on any of my accounts in more than 5 years.
Fast forward to now, Chase takes over Wamu.
First, they do away with the free monthly credit score. Then, they raise the APR. Most recently, they closed my account without notice.
When I called, I was told that they had closed my account due to information found in my credit report. The funny part is, that there have been absolutely no changes to my credit report. I pay for a service to check my credit reports each month, and there have only been improvements to my report and score. (which this is going to damage). I am beyond mad. Not only is this decrease in credit going to damage my score, but there was absolutely no notification of the closure. I had to call myself to be told by some rude overseas rep that my account was closed.
It’s clear that they are trying to get away with all this unethical behavior before the new consumer protection laws are put into effect.
So, since there’s really nothing I can do about this, I am going to complain about them on every website I can find, and file a complaint with the FTC to make them aware of how Chase is responding to the new consumer protection laws. I’ve already convinced my grandma, who has significant accounts held with Chase, to transfer her accounts. I will also tell everyone I know.
SOOOOOOOOOOOOOOOOOOO MAD.
July 18th, 2009 at 12:26 pm
I just wanted to add to the above something else that I just realized.
In May, they sent me notice that they were raising my APR 3% more than what it already was. I had until the end of June to close the account if I wanted to keep the original APR on the balance. I didn’t want to damage my credit, so I just let it be and accepted the APR hike.
2 weeks after the hike went into effect, they closed my account anyways! Of course leaving me with the higher APR on my balance AND the damage to my credit score!!!! Had I known that they intended to close my account, I would have done it myself (AT MY REQUEST)!
July 20th, 2009 at 9:21 am
This is really absurd. it should have been taken care of immediately. I would ask to speak to a supervisor and perhaps mention that you are considering speaking with an attorney. That may get things moving.
July 20th, 2009 at 9:24 am
I would go after Citi to find out why your rate was increaed. Get a supervisor and ask for a US representative. Overseas reps are horrible and could care less about anything. They just don’t want problems and are the least helpful of all credit card company minions.
July 20th, 2009 at 9:25 am
If you opt out, its unlikely they’ll demand immediate payment. But if you have a balance transfer lined up, you may want to transfer some of it over to cut down on interest expense.
July 20th, 2009 at 9:28 am
I would also try to open a new account with a different company before the closed account hits your credit score. This will help balance out the damage from the account closure.
July 20th, 2009 at 9:29 am
ok, that’s just disgusting
July 20th, 2009 at 1:42 pm
I have been a customer of WaMU since 2001 which in turned became Chase. On July 17, 2009, I received my statement and the monthly payment amount had changed. I telephoned Chase just to verify this change was due to the notification of the percentage increase I had previously received. When I spoke with Chase customer service, she indicated that my account had been closed. I couln’t believe it. I have NEVER, EVER been late on my payments and she indicated the account being closed did not have anything to do with whether I had been late or not, it had to do with my credit report. I am furious. This WILL affect my credit score. I then obtained a copy of my credit report from Experian and my credit score is EXCELLANT! What in the world is this all about. Why would they close an account of someone whose been a faithful, dependable client since 2001 with an excellant credit rating???? I will be filing a complaint with the government and once my account is paid in full, never place my credit with Chase.
July 22nd, 2009 at 1:30 pm
I’ve had a Citibank credit card since 1991 and never made a late payment, I just received a letter in the mail that the interest rate is going to 29.99% from 3.99%, I have to high a balance to move it to another card. It is now going to be a struggle to make the minimum payment and I will never be able to pay down the balance.
August 1st, 2009 at 9:38 am
I just got screwed my my credit card company HSBC. I was fighting a fraudulent charge, which they knew about and the dumb @*% let this same charge come up again. And then again. Then, they threw in an over the limit fee, twice. I wrote them again, fighting this charge, and the over the limit fee. They wrote back saying their was nothing they could do….oh, except was my interest rate to 29.9% Thanks HSBC. So I will be going else where to get this resovled. Plus, I think everyone who had WaMu/Chase is getting dropped. I did, and I’ve never been late, or missed a payment.
I feel for each and everyone of you. It’s not fair when you do nothing wrong and the credit card companies screw you.
Carmen
August 4th, 2009 at 11:32 am
I have been a good customer of city for 21 years, with no late payments or other negative issues on my account. Unfortunately do to a very stressful life stile I have made a mistake and overdrew my back account by $30.00 and my payment to city was returned, Yes it was my mistake and I am willing to lose my promotional rate of 4.05% but City is now charging me 26% and regardless of numerous efforts of pliding with them to lower the rate and not put me in such a distress situation. All I get is sorry we can’t help you.
This feels almost illegal, and the fact that my tax dollars are use to bail out some of these company’s is almost unfair. I wish I had the option to tell them “I’m sorry I can’t help you” How do I fight back?
August 5th, 2009 at 7:08 pm
My Juniper Bank credit card account was assessed a finance charge that put me two cents over the limit. Juniper Bank charged me $39 for this two cents. I called to work with them, they refused and let me know they could charge me even if I went one cent over the limit. I closed my account, doubled my payment and attempted to get back on track. They raised my interest rate, assessed finance charges that put me two dollars over the limit and charged me another $39. I attempted to once again work with them, they refused. I doubled my payment and scheduled it online on 7/18/2009 for my due date of 7/31/2009. They started calling me on 7/27/2009 to remind me my payment was due on 7/31. This happened three days in a row, each time I pointed out the pending payment and they promised to remove me from their list to call. (My payment wasn’t even due yet and they were starting collection attempts?) On 7/31/2009 my balance showed $1291.64. My payment was received by them on my due date in the amount of $80. This, with the finance charges of $22.77 would have brought me to a balance of $1233.41, which is under my limit of $1250. However, on 7/27, they assessed me another overlimit fee, which put me back over the limit before my bill was even due. They didn’t post this charge until 8/4/2009 after my statement printed, so not only didn’t they wait until after my payment was due to assess this new fee, they also made sure I wouldn’t know about it until after the fact. They had promised me after the second over limit fee that I would not be assessed another overlimit fee as long as I brought my account back under the limit by 7/31, my due date, which I did. This third overlimit fee has put me back over my limit by $23. They are refusing to remove any of the fees. The fees now total $117 for $2.02.
August 5th, 2009 at 8:02 pm
I just returned from a 2 week vacation and during my travels CHASE reduced my credit limit $2,300.00. I charged my entire vacation on the card with the intent of paying the full amount back on my return. When I got home I found that my card was maxed out and there were still pending charges. I went straight to the bank to pay down the card by $1000.00 so that there would be no over-limit fees, only to be told that my deposit would be held for several days and then my card payment would take a minimum of 5 business days to be applied to the card. So, while the gas and motel charges continue to pile up (over my NEW card limit), I am unable to make a payment. I called CHASE to see if there was some way to work around the problem and the customer service person on the phone told me that “I was one of the lucky ones to even have a credit line available.” apparently they just flat our closed a lot of credit card accounts on people. I was also told that it was my responsibility to check my balance before EVERY transaction to see if they have lowered my available credit… Seems like a lot to ask before each and every transaction. So, I am sitting here helpless while my credit card balance goes up as additional charges clear and over limit fees compound – while my deposit and payments are held by the bank waiting to clear. Even though I had the money to pay the card down $1000.00 BEFORE I was over limit, it will be at least next week before any of my payment is applied to the balance owed. They will pocket the fees and because of the new and improved terms of service jack my rate up well above 20% (it was under 9%) for charging my account over the available credit limit.
I feel so helpless.
August 11th, 2009 at 8:17 am
Terrible this is occurring to so many good standing citizens. I’m a recent victim of American Express increasing my penalty fees even though I have never missed a payment since I had the card.
Its a shame that these credit card companies, getting our bailout, decide to find their way out by penalizing customers who have done nothing wrong. This has gone too far and these credit card companies should be ashamed. Contact your congressmen, state attorney and the federal reserve. These aggressive tactics need to be addressed.
August 11th, 2009 at 5:58 pm
I used to think that complaints about credit card commpanies were by people who had problems paying their bills, until it happened to me. In July I checked my credit score because my husband needed his for a job, mine is 787, his is 784. Later that month I made some travel arrangements and joined that hotels’ rewards program. At the completion of the information input, there was a request to apply for a visa card and get double points if I use that visa card to pay for the hotel when I check in. Great! So I apply. Fast forward 3 weeks, I am at Lowes making a purchase of mulch, for $24. I used the Bank of America card I’ve been using for well over a year, that gets paid in full each month, no balance carryover. The clerk tells me my card is no good, closed account. I call Bank of America and they said that they determined my debt was too high compared to my income, but would not elaborate on what figures they used to determine that! I make a very good income, as does my husband. They said they sent me a letter, but I had not received it. I received the letter finally the other day. They denied my application for the new card that I applied for, AND they closed the card I had been carrying in my wallet, as well as another card that I had not used in years. The same day, I received a solicitation from Bank of America saying I have been preapproved for a credit card, and I received a promotional offer requesting that I consider using that unused card and they would give me 0% interest for 6 months. That offer was for the same card they had just cancelled. So now I am concerned about my credit score and the effect all of this may have on it. I don’t care about BA and will never do business with them again. But, my husband and I have good jobs, good pay, and are considering refinancing our house in order to take out some money to make some home improvements. We have plenty of equity and live in a great area that hasn’t been hit too bad by the housing crunch. Can I fight the effect this will have on my score? If so, how? Thanks for listening, I’m a bit frustrated!
August 12th, 2009 at 7:12 am
I have had a chase Disney Rewards card for about 6 years now,excellent credit, never late, paid over the min. amt due every month and yesterday I was told my interest rate was being doubled. This is absurb. When I questioned the reasoning behind it with a Chase rep, the told me because Chase has the right to increase the interest rate. When I asked if Chase had any other cards available with a lower rate the rep told me to go online and apply that she would not help me over the phone. So now my min. due payment doubles, if for any reason I would be late the rate would default to 29 percent, and all because ‘Chase can do that”. Guess what Chase, I will take my business somewhere else.
August 12th, 2009 at 3:47 pm
On June 28th I received a credit increase from At&T Universal Card (CITIBANK) thanking me for being a LOYAL customer. Then on July 2nd (which happened to be the due date) I went to make my payment onine at 4:45 p.m. after gettig home from work. Online it said my payment would not post until July 3rd making me late. I immediately called customer service and she said there was nothing she could do about posting my payment ontime as it was due by 5:00 p.m. Eastern time and I was in the Central Time Zone making me a lousy 45 minutes late. Customer Service on the phone and online have been very rude. They then raised my interest rate 20.05% for 45 minutes. This company has become a nightmare to try to deal with, and to think that they already got my tax payer $$ in a bailout and this is how they treat LOYAL customers.
August 16th, 2009 at 10:53 am
I have 4 credit cards with Chase. Last week I received a letter (on a Saturday. Incidentally, customer support is available Mon-Fri) stating that the credit limit on one of my cards was being reduced by $3,000. Reducing to this amount left me with $300 of available credit on that card. The following Saturday I received 3 more letters of similar content. One letter reduced the credit limit on another card by $1,100, another was reduced $900, and then the ultimate insult, a card with a $5,000 limit that currently had no balance at all was being canceled altogether. I have 10 years of stellar credit, no late payments, and I routinely pay well above my minimum payments. I also have a credit score above 700. The reasoning given in each of the letters was that the balance owed on revolving accounts was too high, and the balance was too high compared to my credit limit. In one week, they lowered my credit line by $10,000 removing all of my financial cushion.
I consider myself one of the lucky ones, in light of the widespread reports of people having their credit limits reduced below their balance amount, giving these companies ample reason to raise their APR and in certain cases attaching their wages. However, this leaves me financially paralyzed, unable to finance a wedding. I feel that my only recourse here is to tell as many people as I can to avoid Chase bank entirely.
August 16th, 2009 at 9:45 pm
I pay all the bills, and just noticed that my husbands citicard interest rate jacked up to 19.99 from 4.99. I have always paid this bill on time and don’t know why this is happening. Oh yeh, we don’t charge stuff on this card anymore and are just trying to pay it off. Is that why they jacked up the interest rate? I’m so mad that I’m seeing red!
August 17th, 2009 at 9:36 am
Victoria,
There seems to be no rhyme or reason to recent rate increases. Some people have written in that rates were raised after they used their accounts. Other saw rate increases when they didn’t use the accounts. I personally got an interest rate increase on a card I don’t use, though my wife got the same notice, the same day and she does use her card. Go figure!
August 19th, 2009 at 7:19 pm
I have a Bank of America card. I have payed my payments on time and have never gone over my limit. My apr was 7.9% for years. They just recently they decided to raise my apr to 23.9% it has doubled my payments. I have called them to ask that they lower it. They said they could but then I have to stop using it or my new purchases would go to the apr of 23.9% I said well I dont use my card much because the balance is high and I am trying to pay it down. But however I do have my gym membership and my ez-pass coming out of it and I need it for that. So not using is not possible because I need it for automatic payments. I figured well I dont have much new purchases so it wont be that big of a deal. Little did I know that with my next purchase they were not only going to charge my new purchase 23.9% but the whole amount on my card. I called them again and told them that this was not made clear to me by their representative. So I again asked them to please lower my apr. They told me no and there is nothing they can do. I have spent hours on the phone trying to find someone in the company to help me. No one is willing to help. also now my card is over the limit and I cant seem to catch up with the interest rate so high. So now it is hard to get credit any where else at least I should say with out it being a scam. Which leads me to my next complaint. I figured fine. I will do the balance transfer thing. I get approved for a Household Bank credit card. I needed a $12,000.00 transfer they only give me a $300.00 credit line and only transfered $150.00 of the $12,000.00 balance. I called them and asked them if this was some cruel joke. I said if you can not transfer the whole amount that I requested then why would you transfer any at all with out contacting me? They could care less and told me there was nothing they could do. So needless to say I have another card that I do not need and my great credit is be ruined. I think the goverment has let the credit card companies run rampant and we are all paying for it literally. I am stuck I cant get another card or a loan right now. Thank God I have a job that I can work a ton of overtime. So needless to say I have to make my life all work for the next three months or so. I can only rely on me to get my self out of this mess. The goverment is off helping all these big corporations and leaving us with no help. Its sad and I feel completely taken advantage of. Bank Of America raised my rate right after the bill was passed that your apr can not be raised on existing balances. That bill does not go in effect until 2010. So I guess the credit card companies are making as much as they can. I think it is sad and I also think the goverment needs to regulate the credit card industry. They are ripping people off and there is nothing any of us can do about it.
August 20th, 2009 at 10:37 am
Gale,
I am really sorry to hear about this. I would plug away at Bank of America to get the APR reduced-if you try enough, you may be able to find a sympathetic rep.
August 20th, 2009 at 8:19 pm
Thank you. I will try again but I think I am fighting a loosing battle
I will let you know the outcome.
August 23rd, 2009 at 3:16 am
SIX MONTHS AGO, MY CREDIT WAS EXCELLENT AND NOW IT IS IN THE DRAIN. THIS IS WHAT HAPPEN: THE CREDIT CARD COMPANIES EVEN THOUGH I WAS PAYING ON TIME AND MORE THAN THE REQUIRED MINIMUM PAYMENTS STARTED TO DROP MY CREDIT LINE FROM $55,000 T0 $35,000, $25,000 TO $5,000, $15,000 TO $500 ETC…AND EVEN $20,000 CLOSED COMPLETELY….I OWED $125.00 TO CREDIT CARDS WITH TOTAL CREDIT LINE OF $300,000 WITH DEBT RATIO OF 5/12 (41.6%)AND NOW MY TOTAL CREDIT LINE IS $160,000 AND I OWE $120,000 AND MY DEBT RATIO IS 2/3 (66.6%). MY CREDIT SCORE NOW SUCKS AND I AM UNEMPLOED AND I CAN NOT MEET PAYMENTS. CREDIT CARDS SHOULD NOT BE ALLOWED AT THIS CRITICAL ECONOMIC TIME TO DROP OR CANCEL CREDITS OF CONSUMERS THAT IS AFFECTING TO DROP THEIR CREDIT SCORES. I THINK IT IS FAIR FROM CREDIT CARD COMPANIES TO CAP THE CREDIT LINE BUT NOT TO DROP OR CANCEL COMPLETELY SO THAT CREDIT SCORES WILL NOT BE AFFECTED.
THANKS FOR YOUR ATTENTION TO THIS MATTER,
STEVE
P.S. CHASE/WAMU CREDIT CARDS COMPLAINT
August 28th, 2009 at 9:02 am
About 4 months ago, I was notified that the fixed rate
of 6.5% that I have enjoyed since being with Regions, was going to change,and I had the option to “OPT OUT” which I did. I had an unauthorized charge on the account that automatically cancelled out the “OPT OUT” agreement,
and the interest rate went to active card levels.
I immediately contacted Regions, informed them there was an unauthorized transaction, I was informed that when the account is re-credited with the unauthorized amount the additional interest and the interest rate would go
back to the “OPT OUT” agreement of 6.5%
Last month, it was not changed so I called again and was informed that it would change, and again I can see looking at my statement on line I am being charged yet again at the higher interest rate, and I have not been
credited back the incremental amount of interest I have been over charged.
This is going on now for 3 months, I have called the Credit Card Company many times and nothing happens. This is equivalent to highway robbery, as the customer appears to be at the mercy of the Credit Card Company, who can do whatever they want regardless if it not my fault.
As a customer of AmSouth/Regions for 14 years now it’s very disappointing that I’m being treated this way I’m sure after calling again I will call get the same run around as I have done for that past 3 months.
Why do Credit card Companied have so much power…..?
August 31st, 2009 at 9:38 am
Q: Why do Credit card Companied have so much power…..?
A: Because they have all the money
But as to your situation, you should really push hard with the reps and get supervisors on the phone. You should not have to waste your time battling with this company over a transaction they should not have allowed in the first place.
August 31st, 2009 at 1:20 pm
Chase has just increased my minimum payment by well over twice as much as it was previously. I have always made payments on time and for more than the minimum amount. When I called to complain they said it was because I wasn’t making more purchases on the card, just paying down the outstanding amount. They want me to use a loan transfer to pay off my low rate loans so they can get me off the books! They offered to reduce this increased minimum but at the same time would adjust the loan rate up from 2.99% to 7% for a limited time and then it would go up again! This was not a choice, it’s robbery! This is so wrong on so many levels. I am recently single and am doing really well paying down all of my debts and this increase was NOT in my budget. This may be the straw that puts me into bankruptcy – then they’ll get nothing instead of my monthly payments!
September 1st, 2009 at 12:15 pm
I’m sorry to hear about this. Some visitors have had some luck aquiring better deals than the one offered to you. You can read more about this here: http://www.smartbalancetransfers.com/blog/2009/02/chasecredit-card-low-interest-rates/
September 11th, 2009 at 2:51 pm
Juniper Bank (Barclays) credit cards immediately raised interest rates when they learned of Congress’ new laws even if you were an excellent customer. Now, on August 28th, they changed rates again, this time to “varible”! Fortunately for me, I only owe them around 300.00 and will tell them where to go pretty quickly. Don’t bother trying to talk to these idiots as they are rude, don’t care about their customers and use the same rhetoric (we are only doing this to help our customers)when challenged by customers. Juniper doesn’t care about customers, providing customer service or who they hurt by their questionable practices. I am filing a complaint with the FTC and my Congesswoman. I suggest to anyone receiving offers from Juniper to trash them. They are not worth doing business with.
September 14th, 2009 at 4:33 pm
Haven’t heard a positive word about them from anyone. Definitely seems to be a company to avoid.
September 15th, 2009 at 7:49 am
I had made a balance transfer with CHASE over 2 years ago because I was able to afford the minimum monthly payments. My balance transfer had a fix APR of 4.99% until it’s paid in full. Recently I received my statement with a late fee and when I call the credit card company they informed me that the minimum payment has been raise from 2% to 5% of the balance, so instead of making minimum payments of $360 now they are $920, which is more than double.
I have never been late and my payments have always been more than the minimum but I am NOT able to afford the new minimum payment. When I called them and asked what are my choices they told me I either 1. Make the new minimum payments (which I can’t, they are too high) 2. Renegotiate my promotional APR to a higher APR to keep my old minimum payment for 2 years – OR – 3. Default the minimum payment and lose my promotional APR and pay 18% on the balance.
I can’t believe this credit card is doing this, this is a way to force people to give up their promotional APR, they don’t give them an option, this should be against the law and action should be taken immediately.
September 15th, 2009 at 8:55 am
Ricardo,
Many people have had reasonable success negotiating the rate. I’ve heard from a handfull of people who have been able to get a 6 or 7 rate and reduced payments. Sure, it is entirely unfair to raise monthly payments by 250%. However, it is legal and the best option is to work with them. It may cost you a few more points, but it beats the hell out of the limited options otherwise available.
September 21st, 2009 at 11:35 am
So tell me how it will help to transfer a balance to a new card with 0% interest–won’t they just change the rules on you, also? I transferred to Chase several years ago to a 3.99% fixed for the life of the loan. They haven’t changed the rate yet, but upped my mininum payment from 2% to 5%. If I can’t pay, which I probably won’t be able to continue, they will up the rate. I can’t see that the same won’t happen once you get sucked into the new card with the 0% rate. It’s all madness, and once I get this paid off, I intend to get rid of all my cards regardless of how it affects my credit rating–I would rather live on the street than allow them to treat me this way.
September 22nd, 2009 at 12:50 pm
Credit card companies are much less likely to break a short term contract than they are to alter a long term contract. Fixed rate APRs were too risky and the rates were to low to be profitable, which is why many banks have found ways to punish people with higher monthly payments.
September 25th, 2009 at 6:11 pm
Chase has recently charged me two consecutive RSF fees of $39.00 EACH. I recently paid off my large balance on my chase account the month prior and had a small balance of finance charges which I guess accrued sometime during the month, since i paid my balance off 1 week before the due date…I paid the finance charges with my other bank account online and received a RSF fee as the access to the accoutn was denied. I verified the acct info online and attempted the payment again, less the RSF fee which I intended to dispute. A second RSF fee was charged. I contacted Chase and was informed that the bank account was off by 1 duplicate number, but they could not inform me which number and online it only shows the last four which read correctly. I asked to have the fees removed and the balance to be paid by my primary bank acct. I was informed that RSF fees are not able to be refunded by ANYONE in the company as Chase’s system does NOT allow any credits to there online systems. When asking for a supervisor I was informed that the supervisor had no more power to credit the account than did she or the CEO of the company. “It just isn’t possible”. Maintaining my composure I requested a supervisor again and was informed they were gone for the day and i would receive a call from them in two days, have a nice day! This is a MAJOR service break and I find it very difficult to believe a large corporations “systems” leave them with no avenue to correct a service issue with a consumer. They can not credit my account!? They are a ‘credit’ card company!
Unbelievably poor service. The RSF fees are solely to generate profit and are of no cost to the credit company to have a payment request denied by the bank source, yet they charge consumers $39.00 a pop!
October 3rd, 2009 at 9:38 am
i have a card with chase and have had it for around 3 years! i have never been late with a payment and have always until recently paid at least 11/2 times to double the payment!! they raised my interest from 9.24%to 13.24%!!i think this should be illegal and feel like not paying them!!!
skip adams
October 9th, 2009 at 2:59 pm
I pay my Citibank card online. They used to give you until 5 CST but now it’s 5 EST. I started paying it before 5 but by the time the computer finished it was 5:03 PM, so late! I immediately sent an email telling them what happened and they said nothing we can do until your statement comes out. So when my statement arrived it had a late fee and a 5 percentage point increase of my rate!! and after having the card for 25+ years!!
October 12th, 2009 at 11:01 am
Gail,
I would pester Citi with more phone calls. Always ask for a US customer service rep and then a supervisor. And keep calling until someone can actually help.
October 12th, 2009 at 7:28 pm
Anyone else have Amex hassling them for payment two weeks BEFORE it’s due? This is the second time they’ve cut me off and started calling me wanting me to pay NOW because my spending this month has been more than usual. Well, it may be more than usual but they got their money on time, and in full. Last time I went ahead and paid the bill two weeks early like they wanted. This time they can suck it until it’s due. Could I take it out of the bank and pay early? Yeah, but I’m not. They can cut me off until they get their payment- so what. Like they’re the ONLY credit card in my wallet. What’s up with this?
October 13th, 2009 at 11:49 am
This is a new one. Haven’t heard of Amex cutting off credit and calling for their money before. Clearly they want you to keep spending. They just don’t want you borrow their money.
October 19th, 2009 at 10:53 am
I have a Citi card which I opened more than a year ago because of a 0% promotion they were offering for balance transfers and also allowed for the customer to pick their billing date, which I chose the 15th. Everything was going well until this year when I was late with a payment. I should have made payment by Friday but because of a very busy weekend, I ended up paying it the following Wednesday. The next month, they charged me a 29% rate! So I called them and because they had said it was first time being late they would give me their regular rate of 9.99% (will not give me back the 0%). A couple of months go buy at this rate when I noticed the rate was back to 29% so I called them and said what the heck??? They told me that my payments had been late again for the last two months. I had told them that that was not true as I was paying before (or on) the 15th. I had always paid more than amount due also. They refused to lower the rate because they were adament that I was late. So I went back to check the dates (my billing is online) and noticed that one month the due date was on the 13th and the next month the due date was the 12th. Well, wasn’t this a nice little trick? As most people have budgets, it would be impossible for me to pay this any earlier than the day that I had chosen. I spoke to them again and they did not deny the dates changing and even had said that it was only by a couple of days – well that’s funny because according to them, I had only been a COUPLE OF DAYS late. I have closed the account, which I didn’t even know lowers your credit score and can’t understand why it would, and have applied for a loan from my bank to pay the credit card off. Discover Card had offered a balance transfer of 19% and not even for the full amount. What was I supposed to do with that? (not only that but I was hearing of lousy practices with them too)
I will stay with my credit union visa which I have had for more than 12 years with only a 1% increase during this time. These credit card companies are pulling SCAMS and are actually getting away with it. In this economy, no one can afford 29% interest rate and these banks end up losing money in the long run along with money they have to spend for collections. They can’t see this?
October 19th, 2009 at 3:23 pm
I had this Providian credit card for the past 10 years, then Wamu bought the company and then the EVIL CHASE BANK. I always paid on time,always more then the minimum amount, never late for my payment. Then I received a letter saying that they closed my account, then today I got my statement with a higher APR 27.24% that is just ridiculous and jus plain STUPID. We realy need help to stop this nonsense. I’am very very upset. This just unfair!
October 20th, 2009 at 8:48 am
Help! My parents have a MasterCard through Kroger Personal Finance (grocery store). My mother pays the balance every month in full. She paid the March statement in full on time and the check cleared her bank but Kroger refuses to acknowledge receipt of the payment. She even had her bank attempt contact them and fax them a copy of the cancelled check to no avail. Ever since March they have been tacking on late fees and interest and calling them constantly, sending letters, etc. My parents try to talk to them and ask for a supervisor and all they get is someone telling them they need to pay. What can we do? This has ruined their otherwise flawless credit. I think they should be able to sue Kroger Personal Finance, but they’d probably just be happy if this was resolved and their credit rating fixed.
October 20th, 2009 at 10:59 am
Shirley,
If there is proof of payment, you should be able to use that as proof. I would get that cancelled check and force your way to a supervisor that can get something accomplished. This is truly absurd.
October 23rd, 2009 at 5:57 pm
Perhaps you can tell me what is going on with Bank and Store credit cards.They are asking consumers to pay off the cards.They ask if you make a purchase to pay it off when the bill comes.I did just that.My store accounts were closed.They stated I had too many over the credit limit fees and late payements.The banks said it was based on my credit report from Experian.One company said I had not used the card in a month so they decided to close the account.They told me to re-apply and the would gladly open the account.They denied me saying that I had too many negative reports.They closed the accounts without worning.They claimed it would not affect my credit score.In a matter of four days my score dropped by 100points.My score was at 671.Then I went to purchase a car and they got a score of 571.I wrote to Experian and they said they gave no such report to close my accounts.Can you please clarify what they are doing.
October 26th, 2009 at 12:42 pm
my citibank aa rewards card went from 13% interest to 29.99% … I have no late payments and always pay more than the minimum balance… OMG…
October 26th, 2009 at 2:14 pm
Lana,
I honestly cannot tell you why this happened to you, but generally store cards tend to get paid last, as consumers who fall behind care more about credit cards they can use everywhere instead of just Macy’s or Sunoco. It is a shame you were hit all at once. This has pushed from the excellent credit category to average credit.
You may want to consider paying down balances on credit cards you currently have open, as this will reduce your credit utilization ratio, a factor that plays a huge (30%) role in determining your credit score. You may also benefit from using a free credit monitoring service (most have free 30 day trials). One of these services can help you uncover ways to increase your score.
October 28th, 2009 at 5:22 pm
Has anyboby complained about not recieving a statement then realized it was missing from the monthly bills. This happened to me I called the company they said you should have known it was to be paid on the 15th (now the 20th). So there is a late fee. Talking to the rep I discovered I was missing the next months statement. Why did I get the statement all along and now the last two month no statement. Are they doing this to charge late fee? I haven’t charged in a year and am trying to pay off all credit cards. Some have high interest rates and it looks like the princpal never goes down. I pay twice the minimum. A card I called on to get the interest rate lowered said it was a 90 day credit card (I didn’t know that) I have been paying on it for a year. I have it down to $500. Should I consulidate all the cards to one card and pay it off that way? I have 4 cards I’m trying to pay off.
October 29th, 2009 at 4:20 am
I received, out of the blue, a notice from Chase (which bought my WAMU account) that they feel my interest should be 27% and not 7%! They’re going to change it Jan 1! Of course the government laws to make this act illegal won’t go into affect until April. Too late for me.
Chase is the worst CC to have in your possession! They stated, in their friendly memo, that if I didnt like the new amount my ONLY option was to immediately pay off the entire total. I’m working OT like mad!! I will NEVER use Chase again in my lifetime!! I suggest a credit union.
October 29th, 2009 at 9:33 am
Becky,
If your credit is good, you can get a balance transfer credit card that offers a 0% rate for up to 12 months. This may make paying down your debt easier and help you pay off your cards quicker.
November 13th, 2009 at 9:47 am
as of july 30,2008 per american express confirmation letter regarding a balance transfer (ref#20082119100529usd) locked in at 8.99% per american express rep “mitch” via telephone on 7/28/8 for the life of loan and now is charging a different percentage of interest rate– after a few calls ending with supervisor “aileen” today via telephone 11/13/9 this is considered a PUUCHASE and not a transfer–even though i have the letter to confirm it. as of today i have now filed with aileens help a dispute. i plan to follow up with the FTC
November 13th, 2009 at 1:35 pm
I owed Chase ToysrUs MC $3151.66. I paid them $3148.66,($3.00 short) due to an error on my part. This payment was not late, it was 7 days early. I was charged $80.30 in interest charges the following month!
I paid the following bill in full, including the $80.30 fincance charge. Not only did I pay that bill in full, I had returned over $1400.00 (10-16 to 10-20)of merchandise.
I was still charged another $53.47 in interest charges that month!
I spoke with a csr, who informed me there was nothing she could do.
I then spoke with a female supervisor on 10-13-09.
She told me that was how it was. I didn’t make my whole payment, nothing could be done, and thanks for being a loyal customer for over 14 years.
This is just not right!
My interest had jumped to 18.99%!
I also have never been late, and have always paid my bill in full every month.
I was only short $3.00! I have had to pay $133.77 so far for my “mistake”, and just found out I still have a balance. ANOTHER $30.51 in finance charges!
This is just wrong. The tax payers have no choice but to bail out the banking industry, only to be treated like this. We all need a little help at times!
Changes should be made so that this does not happen to ANYBODY again.
November 13th, 2009 at 2:07 pm
Lisa,
I really feel bad about your situation. This is really absurd, and if this had happened a year ago, I guarantee you the bank would have waived the charges. Now, it seems banks just want money anyway they can get, even if that means fleecing and losing a good customer. I would keep trying to call and get some fees dropped. You’ve really been abused here.
November 17th, 2009 at 9:27 pm
I have a client in CA who is a soldier. When he was serving his country in Iraq last Dec Citi reduced his credit limit which caused all kinds of additional fees and interest rate increases. After he came home, it took months to get all the issues resolved and they did give him credits. Now he is serving our country in Afghanistan. Prior to leaving, he made a $7,000 payment on his account in good faith. Also, they have a copy of his deployment papers. I just received a letter that they reduced his credit limit by $7,000 due to his credit report. I pulled his credit report and there have been no changes except paying down his card. I believe that this is a violation of the Servicemember’s Civil Relief Act and will be fighting for his rights. I am writing this because I want you and your readers to be informed about how our service men and women who are fighting in a war are being treated. I will keep you updated re the progress.
November 23rd, 2009 at 10:43 am
I think it’s about time Everyone should be calling, emailing, and mailing letters to their congressmen about the unregulated and disreguard of Credit Card customers. My credit card company, Captial One, raised my interest rate from 12.15% to 17.90% for no reason on May 17, 2009. I have never been late on my payments. The Prime Interest rate has remained the same all year(2009) at 3.25 and is not expected to go up at the next meeting of the FOMC meeting Dec. 14-15, 2009.
A greater than 5% increase…because they can do it with NO oversite? Just because they have been greedy and have made the wrong business decisions? Why do Boards of Directors leave CEO’s and CFO’s in their positions when they have made very bad business decisions…mistakes…? If you or I had been working for them and had made such bad mistakes…we would have been fired.
I think its about time the PUBLIC stood up for themselves and started becoming very proactive…!!!!
Write your Congressmen-to look up their email addresses go to this: http://www.conservativeusa.org/mega-cong.htm Write your Newspapers, Write your Television Stations….contact anyone that may help!!!!
December 2nd, 2009 at 1:12 pm
* Re: AT&T UNIVERSAL CARD*
I have had an account with AT&T Universal for many years with a credit limit of $25,000 and a rate of 13.7%.
I paid the card off in full each month. In October $335.90 was owed on the card with a $20 minimum payment. Unfortunately when I made my online payment I inadvertently sent it to Citi card ( I also have a Citi card and on the AT&T bill the Citi logo is prominently displayed by the purchases. AT&T and Citi are related companies. When I got the November bill it had a notice stating that, as I had missed a payment, my interest rate was being increased to 29.9% for 12 months. I immediately sent payment in full for that bill and called customer service, who generously agreed to stop the interest hike. Last night I had an automated call from Citi Bank stating that there was a problem with my account (I had my purse stolen 10 days ago so took the call), to press a number the enter the billing zip for the card. The automatic attendant told me that the zip was incorrect (!!!!!) and that I was being transferred to a rep. The live person informed me that my account had been reviewed in November and because I had missed a $20 payment in October the company had no choice but to lower my credit limit from $25,000 to $500 – that’s right $500! Just what the hell does that do for my credit rating?! I was, and still am, spitting blood, especially when the rep and her supervisor glibly told me that I have no recourse as I breached the terms of my contract. Needless to say I will no longer be using AT&T Universal, Citi, or any other finance company associated with them, and, hopefully, anyone else reading this will take a poor view of their practices and give their business to other companies. The way they treat consumers is absolutely disgusting and unethical and the saddest, and biggest wrong, is that they can get away with it unscathed.
December 8th, 2009 at 7:31 am
Att kept raising my limit and I used it. At 6% I thought this was a very good deal. Well, when my total amount got quite large, they did, what I think is criminal…they raised it to 25%!!! How is that legal? Would really like to know. Only reason given thus far is, none. “It was just time for a change in your rate….”
December 11th, 2009 at 9:36 am
BofA…they are raping me on finance charges, 20%. Then they cut my limit when I only had less then half charged on the card. I had an 18k limit with only 6k charged. I pay a few grand a month on my balance and would be finished paying this card 2-3 months. Aren’t these companies supposed to work with consumers! How do they get away with these finance charges!? Not to mention they pushed me to look at debt management when I KNOW its not right for me. Yes I have debt but I launched a business on the side of my regular job…I have good consistant income and know I can pay off what I have in a year. These people were nasty and totally crossed the line. They went out of there way to call me to get personal information on me and then cut my credit line AFTER I called asking them to work out something with their finance charges! They need to be investigated!!!!!
December 13th, 2009 at 12:05 pm
WOW!!! What happened to Michelle is so similar to what happened to me! I had to double check it wasn’t a duplicate of a chat I had with BofA! Was it a female named Jess?
[#130 Michelle Says:
December 11th, 2009 at 9:36 am]
Also, BofA doen’t give an option to *pay extra over the minimum* using their “automatic payments” option through their “billpay”, so it’s really not fair for them to use that against their customers as if they are having financial difficulties. Their Customers may be traveling often on business or have a lot of accounts with them. – We want to set it and forget it.
December 17th, 2009 at 6:48 am
I have a shared Chase card with my wife. The longest running line we have together, and 19k imit, 14k used on 2.99 long term promo. We owed on a Sat 14th of month and our bank transfered on that day, recored show it. Although the seemingly had my money, Chase did not “accept it” until Monday. I called and they said they did not want to appear abusive so the dropped the charges totaly. Two months later they ‘reviewed’ my account and say that I have until March 2010 to pay it, close it (and lck the rate as 2.99 until March 2011, then standard rates after that) or take the hit. I can almst always talk my way out, and NEVER had a late fee (as they ack) and always pay mre. I have not used it in months. The person on the other end said no manager was needed, she was as highas I would get. So I’m perfect in payments, paid on the day it was due, have a large balance and promo rate, and they would not transfer mymoney from one department to the other in their own house, and I’,m being deliberatly and fraudulently punished. I’m looking for options because I’ve never seen a more clear cut case, and it’s happening to me. Could you suggest?
December 17th, 2009 at 2:24 pm
Steve,
I would keep calling and get a supervisor on the line. If they won’t budge on the rate, you should be able to opt out at your current rate, unless they are accusing you of defaulting on the account. However, I would not take the word of one rep, especially with such a large balance involved.
January 6th, 2010 at 4:02 pm
I paid my balance on the Chase website on the due date at 11:00 pm PST. They posted the payment next day since they operate according to EST.
Then they charged me $39 late fee and finance charges. I closed the account. Chase put the account in revolving status charging further finance charges which already posted but no statement generated so I could not pay.
Chase is a SNEAKY company that preys on the Consumer. Their customer service reps were so arrogant,that I felt like Chase is her own private business and she doesnt care about any ill reputation.
Chase sucks. Period.
January 7th, 2010 at 10:53 am
This is a nasty story Mike. I imagined you’ve called customer service plenty of times, but if you haven’t had your problem escalated to the supervisor of the supervisor (and always request a US one) getting on the phone with them may help you reach some kind of deal. If not, and you balance is high, you should consider a balance transfer. If they put your account in default, you are likely paying 29.99% interest on your balance. Double check your online statement to see if your finance charges increased. If so, and you owe more than a couple hundred dollars, definitely look into a 0% balance transfer credit card.
January 11th, 2010 at 3:22 pm
I am being charged late fees and interest on a zero balance. I paid my account with Chase Credit in November. In fact, I made two payments in the month of November before receiving a statement for December. Both payments were posted on my December statement, but they added an interest charge even though I had a zero balance. Now they continue to add interest and late fees on a zero balance.
January 11th, 2010 at 3:29 pm
My best guess is that you had accrued finance charges from your Novemeber balance that posted in December stemming from the days you had a balance prior to the payments. I would call and seek a U.S. based customer service rep, request their supervisor, and explain the situation. You may not get far, but be polite and you may get them to drop the fees.
More importantly, make a payment as soon as possible. Chase may report you as delinquent if your payment is more than 30-60 days late, which will really hurt your credit score and make it difficult to get a new card or low priced loan for some time, despite how small this issue is.
January 12th, 2010 at 12:05 pm
I applied for a citibank credit card in August-September, 2008 and received a letter of approval together with my PIN but there was no credit card inside. I tried to call and sent some messages to my agent (Melona Nemenzo) and e-mailed the citibank online but did not receive any answers. I thought that the citibank was cancelled my approved application or the atm credit card will follow next. Until the last week of September, 2008 I had to leave the country as an OFW. Now, this January, 2010 I received news from my officemate to my previous employer that I had a letter from citibank stated my debts with one month penalty. I was shocked because I did not have a transaction from any citibank services and until now I did not received my atm credit card. The said letter was addressed to the name of ADONES DINOY BETULAN (I am Bentulan).
please give me some advice guys..i am out of my country now as an overseas worker and they advice my family representative to call them personally but i attemted many times but i cannot enter and wasnt able to talk to any operator and i spent my phone load of nothing..thank you..
January 12th, 2010 at 3:40 pm
Don,
This is a number from their website you can call collect from overseas. Let me know if this helps: 1-605-335-2222
January 13th, 2010 at 3:36 am
I had an Capital One credit card for years, in 2007 I had Breast Cancer and went on Social Security Disability. I fell a few months behind in my payment and called to be told that they had an hardship program which I was eligible for.Under this program after 3 months of on time payments(which I had set up for automatice payment through my checking account) my account would be reported in a postive status to the three credit bureaus. Each month that I got my statement it indicated that I was not current, when I would call to ask why the statement showed me not current I was always told it was something internal that come with the statements. But not to worry I was current. In December 2009, I had my credit report pulled and Capital One has reported that I was late in February 2009 and five times in 2008. I have made countless phone call and spoke to many mangers. The last call to the company in December stated they saw the problem and indicated my dispute and that I would be getting a letter in about 10 days with an update. Today I did get the letter only to state once again that I was late in February 2009. Can someone give me any suggestion on how to handle this PROBLEM
January 13th, 2010 at 4:45 pm
Kathy,
First off, I hope you have regained your health. As to your Capital One problem, getting credit report errors fixed can be a nightmare. At this point, I would encourage you to continue harrassing customer service, always asking for a US rep and then a supervisor. Get anything you can in writing.
The other way to pursue this is to contact the credit bureaus and contest the incorrect information. Provide any documentation that helps and, if you don't succeed the first time, keep trying.
This is the best course of action I am aware of, though hopefully another visitor may have some more ideas that will help.
January 29th, 2010 at 10:53 pm
Dear Readers,
CITIMASTERCARD sucks. We have been making payments on a monthly basis. Last year we paid 3 times a few days late b/c I lost my job. We always paid the bill. We received from then on very nasty calls from citi-reps.
In oct 2009 we were finally advised by a rep after almost a year complaining to them that our salaries would not come in before our due date that we had an option to change the date, So we did. Ever since the change Citimastercard has made our lives miserable. They send us a letter acknowledging the changed due date but they convienently in their letter don’t state the date. We agreed on the 29th of each month over the phone. Now they keep changing our due date without any notice and or permission and cgarge us late fees for not paying on time. In this same letter they mentioned that we could make a payment at any given time.So we did, we paid earlier than the due date. Now CITIMASTERCARD said you missed a payment and up the monthly amount went. WE can prove we paid but citi refuses to acknowledge and now we have to pay an additional $451,-We have been asking for a written reply however we never received any!!!We have been on the phone for ours at the time and everyone of them passess the buck on to the next or they are simply rude and when you asked their name and id number they simply hang up!!Why is it allowed for them to keep raising the interest rate?Why are they allowed with changing the due date without permission. It is affecting our credit score and i am fed up with their practices. Are there class action law suites against this credit card company?Is there anybody who can give me advise to how to deal with them. I want to call the newspaper to show the ridiculousness of it all. Do you think that would help. Any other people with similar citimastercard experiences? We never had an issue with them before utill the recession hit. We receive their statements late or not at all. We make payments online and if we pay a day early or late we be punished. On the back of their statements it mentions that they have a 19-23 day grace period for payments. So why are they not obligated to follow their own rules?How can I get a reply back from citi in writing? I want mij questions answered. Is there a government agency in canada that I can complain to?
Please any help would be great.
Lilian, an angry CITIMASTERCARD VICTIM
January 30th, 2010 at 5:33 pm
I just recieved a letter from RBS Bank Visa Card Jan 29 2010 saying they were decreasing my credit limit because of negative credit report. This is the second tme they’ve done this. Funny thing is my credit couldn’t be to bad as I just purchased a new home Jan 9th 2010.
The American people in mass needs to complain to the Feds about this continued abuse by Credit Card Companies.
January 31st, 2010 at 1:10 pm
Phil,
I almost wonder if buying a house is what led to the credit limit decrease. Perhaps that change to your credit profile could have caused the bank to cut down your limit, even though you did nothing wrong in the least. You may want to check your credit scores to see if there has been any negative change, but I have a feeling the change that led them to drop your limit was simply becoming a homeowner. Go figure.
January 31st, 2010 at 1:15 pm
Lilian,
I’m not too familiar with the operations of credit card companies up north, but I believe this is the Canadian agency you may way to contact to make a complaint. Its the Financial Consumer Agency of Canada, and their complaint page is http://www.fcac-acfc.gc.ca/eng/consumers/Complaints/default.asp
Additionally, if you are dealing with rude overseas reps, try asking for a North American rep to help you. Be as nice as possible. Even though you are rightfully mad, its the company that is truly to blame. Phone reps are yelled at and cussed out all day long. Being nice can go a long way.
Best of luck and sorry for all the troubles you have had with your credit card company. Its really a shame that credit card companies aren’t willing to work with good, honest people who want to pay their bills. I applaud your integrity and wish people like you could get fair and honest help.
February 12th, 2010 at 9:08 pm
I have perfect credit with a middle credit score of 755 as of 02/10/2010. In January the prior month I went over the due date on a payment by several days. About 7 days after the due date I logged into my account to make my payment and to my surprise they had changed my interest rate to 32.99% from 7.99%. I was furious as I had never been late or missed a payment. I called Advanta no less than a half dozen times and they also called me constantly. I explained to their calll center in India that the interest rate was abusive and that I was willing to continue making my payments if they lowered my interest back to the original rate. After many calls back and forth in January they called me to tell me that they would be willing to offer me a 17.00% interest rate instead if I made a payment, I elected not to make the payment because I felt the rate was still abusive considering my credit is perfect and no late payments had been made in the past after numerous years of payment history with Advanta. Finally in February I receive a call from their call center in India which asked me some personal information to confirm my identity, then transferred me to a local office in Pennsylvania where I spoke with Dan Carr. He called me to find out why I had not made my payment and explained as above. I also mentioned I had to close one of my businesses due to our economic situation. He asked me if I could make a payment of $ 517.00 dollars and offered me three solutions, one was to send them 50% of the balance and they would offer me 0% interest on the remaining balance for the life of the credit line, the other was 30% of the balance and they would offer me a 7.99% as was originally, then they offered me a hardship option which did not require me to make a payment until march where I would pay them $780.00 dollars and they would match my payment, credit my account for the total of $1560 and the interest rate would be 9.99% so I agreed and made the $ 517.00 payment on Tuesday 2/9/2010. He then proceeded to tell me before the conversation finished that we would speak again in March. Concerned about my perfect credit I called all day Wendesday and could not reach Dan Carr left 2 voice mails. I called Thursday and left another voice mail stating I wanted to make another payment on my account to please return my call ASAP. Finally Friday morning 2/12/2010 I called and reached Dan Carr who I spoke to for over 45 minutes pleading with him and even offerring to send them a few thousand dollars to show them good faith and not report me as a 30 day late to the bureaus because my credit report pulled on 2/10/2010 was spotless and I wanted to protect my credit and have it remain the same way. He proceeded to tell me that since I made the payment he had reset my “delinquency clock” and that now none of the options he had originally offered me were not available. I then called him back about an hour later and asked him once more about making another payment on my account, his response was that he could no longer help me I was to contact his Manager Tom Cush. I left a voice mail and then received a call back from Tom Cush regarding my message, I asked him the same question about making another payment to show good faith and elect one of the original options and that I would send them a few thousand dollars, he proceeded to tell me that because I made the recent payment I no longer qualified for the original options offered to me and that my interest rate would remain at 32.99%. A WARNING to all those out there they used a bait and switch technique to collect the $ 517.00 and then went back on their word. This becomes a downward spiral because now unless I do not make the February payment and make my account past due they will not offer me any assistance as they had originally offered and deceived me incredibly. So now I am forced to withold payment take another late payment on my credit report before they will potentially offer me any other help if any at all. It is impossible to make payments at 32.99% when almost every dollar is going to finance charges that are pratcially as large as and your minimum payment and is impossible to keep up with. I am looking for every possible place to file complaints against this ruthless, callous organization that operates like a MAFIA. Sadly enough my perfect credit is going to take a dive in the near future and they could care less about any of us as individuals. These kind of credit card tactics from these companies must be illegal for them to offer you programs and then retract their offers. They are deceitful and I was betrayed unbelievably!!!!
February 13th, 2010 at 8:49 am
Old Navy Decides how much to charge for a late fee depending on whether or not you call and complain. The first 2 late fees I got were for 45.00 on a balance of around 75.00!!! The third time I called and threatened to close my account, they removed the fee. The next time, it went down to 25.00 on a balance of less than 75.00. This is the only card I’m late on because they don’t have an auto payment set up and because my balance is so small, I always forget to pay it!! So, I’ve closed the account because of a 25.00 late fee on 54.00. The amount for late fees is robbery!!!
February 13th, 2010 at 4:03 pm
Martha,
This is an unusual tactic. And a $45 fee. The Old Navy credit card people are very low, especially since a lot of people with these cards are college students. Shame on them and am glad to hear you were sucessful getting at least some of the late fee removed. It’s very important to fight these absurd late fees.
February 13th, 2010 at 4:17 pm
Nelson,
I posted a separate article with your complaint. Know this won’t change things, but I hope sharing your story with others will help other people when dealing with Advanta. Here’s the link: http://www.smartbalancetransfers.com/blog/2010/02/advanta-credit-card-complaint/
February 15th, 2010 at 8:07 pm
I can’t believe the audacity of the new CITI product, the CITI Forward card. “The card that rewards you for good behavior”….their marketing materials state. They’ve doubled the APR on my card; I’ve been with them for 12 years and never missed a payment. I phoned up when I discovered the rate increase. The customer service rep said he was crediting my last finance charge back to my account and submitting a ‘review’ of my APR. I got the review quick enough (unchanged) but CITI has refused to credit my account stating that there’s been a misunderstanding.
But I suppose CITI knows how the rest of us are to behave. I’m lucky enough to be able to pay off the CITI balance in a couple of weeks and I’ll never go anywhere near Citibank again. I’m looking at my merchant cards to identify any that are Citi cards.
February 16th, 2010 at 8:44 am
I am glad to hear you can repay the balance. A lot of people are finding that their rates have doubled from Citi-it seems they pushed a rate increase in at the very last moment before the new credit card laws took effect. Its truly unfair, and as your experience shows, the people on their phones don’t always tell the truth.
February 17th, 2010 at 5:06 pm
My name is Benito Feliciano,
On 12/08/09, North Carolina Federal Credit Union contacted your call center and was give a
12/9/2009 12/9/2009 ACH Debit
HOME DEPOT ONLINE PMT
$4,124.84
Payoff of my loan, I received a call on January 10, 2010 stating that I need to contact your company because I was over 30 days delinquent.
I contacted your office on 02/11/10 and was advised that my credit was going to be corrected and that all fees and past due interest was going to be taken off my account within 48 hours.
I called back every day after the 48 hours had passed and all your reps stated that they see were the corrections were going to get made but the other department was still working on it. Not feeling comfortable listening to your auto recorder stating that I was 39 days past due.
On 02/16/10 I talked to Ricky credit department manager who stated that your office will not be correcting my credit report. He stated that you company found that it was not an error on their part; but they had taken off $42.00 in fees and he would get the interest taken care of today in the amount of $79.00. I told Rich I no longer trust anything out of your company’s mouth. I told him that even though I will be further loosing credit point, (now) I am closing my account out.
Still not trusting your company I also sent out the funds to pay what was showing as of today. I am also filing a complaint with the Better Business and I will also be contacting Home Depot Customer Complain line.
This letter is also going to all three credit reporting agencies.
Your company did indeed make an error and you time to find some way to get more cash out of me because I paid this card off. It is very evident by all the fee waiving and interest waiving you has already done. This is exactly why congress has started passing law to keep your company for making up charges to keep people owing your company, even after the balance is paid off. Taking all the fees and interest off the account is admitting fault.
Thanks Benito Feliciano
C: Equifax, Transunion, Experian, BBB
February 18th, 2010 at 11:12 am
I’ve worked hard over the past 2 years to pay off my Care Credit balance.
I paid $200 on 01.21.2010, an additional $50 on 02/04/2010.
I received my income tax refund earlier this month so I called Care Credit to get my account balance so I could pay it off. The account balance as of 02/07/2010 was $1,076.96. I logged onto my online bill payment account with my bank and made the payment. I was so relived! My bill was paid, so I thought. The total amount I paid in Jan and Feb was $1,326.96.
Yesterday, 02/17/09 I received a bill from Care Credit stating that my New Balance was $546.13. I looked over the statement and it shows that my “Previous Balance” was $1,326.96. It also shows the payments made (listed above) with the last payment made on 02/12/2010.
The description given for this $546.13 was “Finance Charge”. I called Care Credit immediately. I waited 45 minutes before being transferred to a representative. I asked why I was receiving this bill when the account balance was paid off earlier this month and the account had been closed this past November. The first representative said that this was the balance because of my “account payment history” which made NO SENSE at ALL. I then asked to speak with his manager. He then transferred me to Kyle (Employee number 74222) and he rudely asked if the previous rep had explained the charges. I told him that the rep mentioned “payment history” and the rep said that was correct yet he was unable to explain to me what that meant. I then once again asked him why I was receiving this bill for the account balance had been paid earlier this month, he said it has to do with a letter Care Credit claims they sent me back in November stating my payment history. What does that mean? He not once gave me a response to what that meant. I then told him that when I call and asked for my balance I was told that my balance was $1,076.96.
Balance to me means my obligation. This is the amount due on my account as of that day. (My balance as of 02/07/2010 was the remaining $1.076.96 which was paid immediately) Once this amount is paid on my balance my balance then should be $0. Am I wrong for thinking this? SO, because I paid that balance off, I should no longer have a balance. Correct? This is exactly what I told Kyle, the Care Credit Rep.
Kyle then rudely said “so if they would have told you that your balance earlier this month was an additional $546.13, you would have paid it?” and I responded with “Yes, that is correct because that would have been my Balance, and yes I would have paid it” The rep said that that was my balance and that there was nothing he could do about it. When I requested to speak with his supervisor he said that he could not transfer me to anyone and that the next step was for me to write a letter to Care Credit.
I believe this is an unethical practice should be addressed. I would like somebody to explain to me how this can be considered fair and legal.
February 18th, 2010 at 11:38 am
I was just notified that Capital One is increasing my interest rate to almost double. My understanidng of the new law is that with pre-existing balance that they just can’t increase it whenever they feel like it. I contacted them and I just got the run around. I have been an outstanding client always paying my bill on time for over ten years. When I called they said they sent it out in the mail a year ago advising me of the increase. A year ago, WOW! which I never received. I am very disappointed with all this
February 19th, 2010 at 9:21 am
Sandie,
This is the most absurd thing I have ever heard. I am not familiar with care credit, but they must be required to explain any finance charge. I would continue to make minimum payments only to prevent damage to your credit score while you fight to get these charges removed. Care credit should be ashamed at this tactic.
February 19th, 2010 at 8:54 pm
I opened a WaMu credit card almost 10 years ago and have never had a late payment or a problem. Last year the card was transfered over to Chase. I was traveling over the holidays, and, as a result, my January payment was one day late. This resulted in over $60 of fees and finance charges on my Februrary statement. I paid the bill in full well before the next due date. Now, my March bill has another $10 in finance charges and the representative at Chase says it is because I was late paying that January bill even though I had already paid finance charges for that late bill in full. I asked to speak to a supervisor and was told there are no supervisors available to speak with customers. Ever. This lack of customer service and random application of additional finance charges for seemingly no reason have convinced me to cancel this account and never deal with Chase again.
February 20th, 2010 at 11:54 am
Amber,
What the reps are doing to you is shameful. There are always supervisors. If you are dealing with foreign reps, ask for US customer service and be sure to get an operator number. The people who are handling America’s credit card accounts could care less about us. They’re just happy to be getting so much business. I just wish those jobs went to Americans who would understand your situation and be more open to helping.
February 22nd, 2010 at 12:14 pm
Our interest rate jumped from about 17% to over 23%. My wife called months ago to complain but they said there is nothing they could do. I called today and now they tell me they sent us a letter last year with an option to opt out of the interest hike! When I told Chase my wife asked for help lase year they said you have to ask for a supervisor. How would my wife know that unless they told us first? Chase is the only CC Company giving us a problem. We have been a perfect customer over the years. Please help what are our options as far as fighting back and getting our rate lowered…
February 22nd, 2010 at 12:17 pm
Carlo,
Unfortunately, trying to reason with credit card companies is no longer particularly effective. From what other visitors have been telling me, most credit card companies are unwilling to bend to consumers who unwittingly got hit with rate increases. If you have good credit, doing a 0% balance transfer to a card from another company may be the best (and only) way to get a lower credit card rate without using a credit counseling service.
February 22nd, 2010 at 7:26 pm
I noticed my US Bank interest rate went from 5.99% to 10.99% to include my prior balance. When I contacted US Bank, I was told they sent out a notice in October giving customers an option to “opt out” – close their accounts and pay off the remaining balance at their current rate. I never received this notice. The opt out deadline was January 23rd. My statement went through Jan 25, so I didn’t see the change until I received my bill in February – too late to opt out. They said there was nothing they could do – no exceptions were being made. Although their customer service reps were all very nice (I made it up to the manager), there were no options for me. I’ve been a customer of US Bank for years and have excellent credit. I was quite frankly completely taken off guard.
February 24th, 2010 at 8:46 am
I have dealt with Chase for at least 15 years. I have a credit card (balance $1900) and a line of credit (balance $9100). Last week I wrote a check for $1000 from my line of credit (my credit limit was $11,000). Yesterday I received a notice in the mail that my credit line was “reduced” to $9500 and they could not process my check. I called, and of course was told there was nothing that could be done. If they want to reduce my limit, that’s within their rights, but to bounce a check which, when written, was well within my limit to me is terrible. I was terribly embarrassed by this – all they had to do was pay the check and then reduce my limit if they wanted to. I cut up my card and shred my remaining checks.
February 24th, 2010 at 11:05 am
Bernadette,
This is not the first time I’ve heard of credit card checks not being honored. This is an extremely unfair practice and I will be writing about this in detail to bring attention to the matter.
February 26th, 2010 at 11:27 am
I have had a CITI card for over 15 years now and had no complaints with them. HOWEVER, what they did, starting this Feburary really seems to be criminal let alone an unfair practice. First leave me explain my situation:
1 0% balance transfer $2500 offer expires 06/01/2010)
made on 07/15/2009
1 0% balance transfer $5000 (offer expires 11/01/2010)
made on 11/01/2009
so:
I have 2 tranfers, both 0%, different expiration dates.
For years, payments made to CITI were always applied toward the transaction (transfer) that would expire first as long as they were the lowest interest accruing transactions on the account(i was given verbal agreement of this AND my statement confirm this).
However, they have reversed this payment structure WITHOUT any notification and are blaming the new FED rules as the cause (which is NOT true). It is a way for them to charge the unknowning customer intrest on the first transfer (after it’s expiration date) while the costumer thought the first transfer was paid off.
It sure seems to me that this change was due to the new fed rules but not for the reason the card company want you to believe. It seems to be a devious way for this company to recoupe some of the funds that the new FED rules will eliminate.
I have also filed a complaint with the FTC.
March 5th, 2010 at 10:00 am
I have a citi card for 23 years, never late never missed a payment, and always been able to get a good interest rate,last year it jumped from 7.99 to 14.99 when I called them they said there was nothing they could do Jan it went to 18.99, I told them to take my balance out of their bailout money.
March 5th, 2010 at 5:20 pm
I have a Continental Finance credit card with Firts Bank of Delware. I notice this year they are charging me a monthly fee of $18.00 each month that totals 216.00 a year, plus I am charged an anual fee. I called to ask why I am being charge this amount and was told by a supervisor,that the 18.00 a month fee was for them to report my credit status and for sending me a statement each month. I have never heard such nonsense. I have a $300.00 credit limit and I am being charged 265.00 a year with fees just to have a credit card. I am not understanding how banks can still from people like this.
March 8th, 2010 at 10:13 am
Lydia,
Sub-prime lenders used to be able to charge just about anything. The new laws limit the amount of annual fees, but don’t cap such absurd charges like membership fees, card activation fees, and any number of unfair charges levied on people working to rebuild their credit. Unfortunately, this theivery is legal. Hopefully, paying on time with the card will help your credit score and you can drop this credit card asap.
March 16th, 2010 at 10:19 am
I had a credit card with Imagine credit card. They were brought out by Tribute credit card in Sept. I was NOT contacted with any of the new account information. I contacted Imagine in October and was told that my account closed and I needed to contact Tribute card. I contacted them and was told that I do have a new credit card number but that is only for payment purposes that the account is not active. Then I was told that they will continue to charge me a monthly maintenance fee even though they closed the account. I explained to him that it was unethical that they continue to charge me this fee and interest on the account when they closed the account. According to the customer service representative it was their standard practice. The monthly maintenance fee is charged for statements ( which I have NOT received since being converted over), the use of online payments (I have never made an online payment since they converted over) and according to the representative for them to handling my account. I then asked to be transferred to a mgr and was told the same thing. He told me that Imagine also charged the same fee I said sure they did but I was able to access my statement via online, make payments (w/no fees), whereas now they charge you not only the monthly maintenance fee to make a payment online they also charge you 4.95 for making a payment. This is unfair to customer who maintained good standing with Imagine just to be thrown to another company that charges fees and they don’t send out statements, nothing is available online, you don’t have a credit card to reference you account number and I am still being charged for services they are not providing.
March 16th, 2010 at 2:47 pm
Tracey,
Both of these companies are, in my opinion, predatory lenders. Perhaps having these cards has helped improve your credit score to the point where you can get a real credit card without all the absurd fees. You should definitely look into that.
March 17th, 2010 at 9:09 am
On october 31st of last year I took a us airways flight to aruba I was approached by the flight attendant about a us airways credit card sounded good would give you 25,000 bonus miles for signing which they did however the form barclays which was part of the app stated 20,000 miles neede for domestic treavel 25,000 needed for carribean or mexico and so on however when you contact us airways suddenly the 25,000 thousand need for carribean and mexico travel becomes 35,000 miles when you complain the say there sorry but they no nothing of what the credit card company is saying.I would say that through this mis-representation they are leading people to sign up for cards that they wouldnt normally do also us airways just refers you to there wbsite which tells what they tell you on the phone.They want there payment by the rules they should conduct themselves in the same manor and stop being disengenious.
March 22nd, 2010 at 1:11 pm
I Think I pissed them off. I have been trying to contact someone at Chase to lower my interest rate down from 29.99. I told them I wanted to go on a payment plan and close my account, This was there offer by the way. Each time I would be transferred several times to a CS person and then disconnected. My last call I notified them that I too was recording the call “for quality assurance” They did not like this at all and i was transferred to a supervisor that told me that this was not accepted she then hung up on me.
You mention transferring to another company. Is there one you would suggest? I think my account is now flagged.
Thanks
March 22nd, 2010 at 1:15 pm
Chris,
I would defintiely go with Discover. Out of all the comments on this page, not one is about Discover. That says a lot. You can compare Discover Cards here.
P.S. Nice touch on the quality recording!
March 23rd, 2010 at 9:06 am
Chase raised my interest rate from 10.24 to 17.24 without notice. Sure they said they sent a letter back in November. You know the one. The one that makes you send a letter declining the new terms. I told them I did not get it. They said they have raised everyones interest rates. I have never had a late payment and have a 650 + credit score. They refused to lower the interest. I ask them if this was in response to the new credit card rules that are going into effect and they did say yes. Chase is not a consumer friendly company. Avoid them at all cost. I have found that Credit Union credit cards to be the most consumer friendly. The credit Union card that I use has not raised my interest rate and unlike Chase they actually raised my credit limit. Chase continues to lower my limit as I pay the balance down. They are hoping consumer don’t notice so they can charge fees for going over the limit. Chase is the Devil.
March 23rd, 2010 at 11:12 am
Ken,
I think a lot of people share your opinion about not only Chase, but most of the large banks that issue credit cards. Fortunately, Chase wasn’t as cruel as Citi with rate increases. Although a jump to 17% is pretty steep, a lot of Citi customers saw their rates go to 29.99%. I’m not apologizing for Chase, but it could have been worse.
You are right about credit unions. They offer members much more reasonable terms. I would back the move your money movement, but if everyone moved their money, these banks would need to be bailed out again. You should consider seeing if your credit union will let you transfer balances from your Chase card to theirs. You’ll likely get a much better rate than 17%.
March 24th, 2010 at 10:54 pm
I had a chase disney card for 3 yrs. my husband and i did a consolidation and i decided to keep my chase disney card open because it had the lowest rate at 5.24%. the rest of our credit cards were closed. 5 days after my chase disney card got paid off they decreased my credit limit from $3000.00 to $800.00. never did pay late always on time. Never got a notice saying my credit has been reduced. Tried to go to the bank to withdraw money and was embarassed because it got declined. This sucks. in these hard economic times they should be helping us but there just screwing us every chance they get. its so depressing where people like me uses the credit cards to live on when we need them. worst comes to worst they will never get paid and who gives a shit. i hate this. everytime you think your ahead these credit card companies screws you over big time.
March 25th, 2010 at 9:08 am
Emma,
Credit card companies look to be really pulling in credit limits right after people repay their cards. In a way, its a huge insult, and doesn’t make a ton of sense. However, because the rate was so low, I bet you might have a shot at getting your limit increased if you called and requested a higher rate on the new line. I know that sounds crazy, but it could help your credit score and give you enough available credit in the event you need to make a large purchase.
March 27th, 2010 at 9:20 pm
I am holding two balances on a Chase card. One balance of 6,000 at 8% and a balance transfer of 5,000 at 2.9% for the “life on the loan”. Right before the new credit card law went into effect, Chase raised the 8% rate on my card to 18%. My statement still said that the 5k was at 2.9%. I sent them 6,000 to pay off the higher loan on March 22, 2010. Today I recieved this e-mail…
In most instances, payments are applied to balances with lower Annual Percentage Rates (APR’s) before balances with higher APR’s. Unpaid interest charges and fees associated with each balance type are generally paid first. We then allocate any remaining payment amount to the principal balances beginning with lower-APR balances and ending with higher-APR balances.
I thought that with the new laws, they were suppose to apply the payment to the higher intrest rate first. Do I have any recourse? I really distrust Chase and can’t wait to wash my hands of their shady practices.
March 28th, 2010 at 10:10 am
I did too Jayla. I found this on the Federal Reserve’s website, which I think may be the loophole they are exploiting:
Payments directed to highest interest balances first. If you make more than the minimum payment on your credit card bill, your credit card company must apply the excess amount to the balance with the highest interest rate. There is an exception:
* If you made a purchase under a deferred interest plan (for example, “no interest if paid in full by March, 2012″), the credit card company may let you choose to apply extra amounts to the deferred interest balance before other balances. Otherwise, for two billing cycles prior to the end of the deferred interest period, the credit card company must apply your entire payment to the deferred interest-rate balance first.
Source: http://www.federalreserve.gov/consumerinfo/wyntk_creditcardrules.htm
I’m not sure if your 2.9% deal falls into this category, but I think you should call and speak to a supervisor and see if you can get the payment shifted or some statement in writing as to why your payment was allocated the way it was. I hope it was just a clerical error.
March 28th, 2010 at 11:17 am
Just wanted to let you know, I e-mailed Chase and made them aware that they were not following the rules stated in the new credit card law and that I would take action. To my complete suprise, this is the e-mail I just recieved:
I apologize for the previous respond as the information provided to you was incorrect.
After 02/22/10, when the minimum payment is received, it will be applied to your account in the following manner:
1. Deferred interest promotion (if expiring within 2
months)
2. Lowest to Highest Annual Percentage Rate (APR)
Any payment amount received that is over your minimum
payment will be applied to your account in the following manner:
1. Deferred interest promotion (if expiring within 2
months)
2. Highest to Lowest APR
If you have two promotions at the same rate, the one with the longest duration will be paid first. If you have two promotions at the same rate and the same duration, then the highest amount will be paid first.
I wish to confirm that the recent payment of $5,946.83 was posted to your account on 03/18/10. This payment was applied in the following manner. An amount of $5,847.33 was posted towards your access check balance at 18.24% APR
and $209.00 was posted towards the balance transfer at 2.99% APR.
As a banking institution, various regulators routinely scrutinize our credit card activities. Accordingly, we are confident that we have operated your account in compliance with all applicable laws.
Finally, I feel like I am being treated fairly.
March 29th, 2010 at 9:35 am
Jayla,
Thanks for coming back to share this. I was going mad trying to figure out how they could have legally done what they originally told you they were going to do. Nevertheless, this mistake should not have been made, and I am not entirely sure that it would have been corrected if you did not contact them again. Every large bank should have their computers automatically allocating payments to the highest rate balance. This isn’t rocket science and I am annoyed you had to spend time trying to get this bank to follow the law. Yes, mistakes happen. But I have to wonder if this is happening to other people who are less savvy than you and, if so, if the banks are fixing these problems on their own or “making mistakes”.
By the way, congrats on getting your high interest balance paid down!
March 29th, 2010 at 11:07 am
I think Citi has violated “truth in lending” on this one, but wanted to check.
I have a 1.99 % life of the loan as well as another low rate loan which expires around October of 2010. I have a platinum card and have held the account in good standing for 14 years.
They recently announced an annual fee of $60. That seems to me to clearly violate the terms of the “life of the loan” agreement. Only way to lose the rate was to miss a payment or make a late payment. I believe I can cancel the card and keep the rate. However, again, there is no condition whereby they say I must cancel in the original agreement. This would certainly cause a hit to my credit score. I know they have a right to lower your limits without reason, but this is different.
I saw last year that Chase added surcharges to their transfers and later refunded them after a class action lawsuit. This seems to me like just another watered down version of them testing what they can get away with. Do I cancel and take the hit on my credit or keep the card and fight the $60 ?
March 29th, 2010 at 11:22 am
This is a tricky one Jim. The easiest thing to do would be to use your credit card to make $2400 in purchases to avoid the annual fee. I would use it like a debit card and pay it in full every month.
I don’t know how cancelling would impact your promotional rate or your credit score. I would request something in writing from Citi, perhaps by using the online account area, to get a written record that closing your account would not end the 1.9% rate. I would actually do this twice, with two separate inquiries, so you have sufficient evidence if they try to pull something fishy.
As to your credit score, the hit could be big or not. It depends on how closing the account will impact your credit utilization ratio and if you are closing one of your oldest accounts. I use ID Guard to estimate credit score changes for myself and when I write on the subject, so you might want to try a free trial and use their credit estimator. Just be sure to cancel before the trial ends. You can learn more about the ID Guard service here.
Also, please let me know how things work out. A 1.9% rate is something you don’t want to lose, so no matter what, do everything you can to insure you keep that rate.
March 30th, 2010 at 11:29 am
You’ve given me some good thoughts. Well done knowing about the conditions of the annual fee since I didn’t mention that.
In order to decline the terms I am almost out of time. My balance is low on the 1.9 %. My plan now is to pay it all off if needed when the other loan runs out. I’ll then take your advice and use that card alone spend enough to credit the fee. In the meantime, I won’t be surprised if a legal action arises and they are forced to refund the fee anyway.
This will buy me a little more time to look into any other options. I’ll keep you posted if anything else happens. Thanks for the help.
March 30th, 2010 at 11:32 am
No problem Jim. I think people may try to sue over the fee, but I think its legally within their bounds. Completely unfair, but legal.
April 6th, 2010 at 4:53 am
I, too, used to have a WAMU card until it was bought out by Chase. In January, 2010 my APR doubled for no apparent reason. I called Chase and they told me they sent me a change of terms in November, 2009 which I didn’t remember seeing. They sent me a new copy of these term changes. I appear to be in the same boat as everyone else. I’d like to transfer my balance but with a bankruptcy still looming, I keep getting turned down.
April 6th, 2010 at 8:23 am
Keith,
I’m sorry to hear about your predicament. I would recommond calling customer service and asking for their loss mitigation department. Let them know bankruptcy is in the cards and that you are trying to make good on your debts. Given your situation, applying for new cards will likely not help, as it will just hurt your credit score even more. Hope things turn out okay. Am rooting for you.
jeff
April 6th, 2010 at 10:08 am
I just don’t understand how the act of the credit card companies are not basically criminal. I understand the whole variable interest rate “excuse”. But for me, I hold a Citi Platinum Select. That for YEARS I had paid everything with, then paid off each month. Never late, missed a payment or went over my limit. It wasn’t until this past year I got married, decided to use the card for the wedding, honeymoon (3 weeks in Australia), etc. Not thinking it was a big deal becuase my interest rate was a measly 9%. Not a problem. 15K balance paid off in a year tops. I was ok with that. Then that letter came. The letter that has cause me more stress then anything has ever before. My new interest rate…29.99% This next month, my minimum payment…$480
So the long and short…
I am 24. Bought my house when I was 21 right out of college, decent paying job, married my highschool sweet heart of 9 years, and have worked hard for everything I have. In my opinion, the classic “American dream” scenario.
How can this be happening. My wife has lost her job and are currently on my income alone. Like many others, this is my only revolving credit, so I really don’t want to cancel the card, or go to a debt consolidation due to the negative impact on my credit.
I just am at witts end, money is tighter than ever and I just want to know if there is a way out. I have made numerous attempts to get my interest rate reduced by asking for a supervisor’s supervisor’s supervisor, and all they say is nothing can be done and transfer me to debt management department who says that if I either put $700/month on the card and/or pay double the minimum (mind you that would $800+/month) there really is nothing that can be done other than cancel the card and be put on a plan. Help…please.
Thank you.
April 6th, 2010 at 10:49 am
Venus,
I really feel for you man. With a 29.99% interest rate, its nearly impossible to get out of debt. If you pay the minimum, you actually will never get out of debt. Hopefully, your credit is good. If that is the case, apply for a new balance transfer credit card that offers a 0% APR for 12 months. Move as much of the Citi balance over and pay down that card with all the extra money you have. You have to get out from that 29.99% rate. It will kill you financially.
April 14th, 2010 at 12:15 am
In regard to the Continental Finance Card: The FDIC issued a Cease and Desist and Notice of Restitution Order against First Bank of Delaware/Cont. Finance for their “unlawful and deceptive” marketing practices. If you were issued that card between March 2006 and Oct. 9th 2008, then from what I have been told it was illegal. I am confused as to the restitution as I can’t seem to find documentation as to whether this has been sent out.
April 14th, 2010 at 8:16 am
I am happy to hear this. Some of the worst complaints I have heard centered around this company. I will look into this to see what I can find. Thanks for letting us all know about this.
April 16th, 2010 at 12:56 pm
I am glad to tell you about Citi Bank scam. I had one balance transfer that came due 7/10 and I took another one due 1/11. Both were for 0% interest.When I made myt payment the full amount if being applied to the balance which is to come due 1/11 therefore there balce due in 7/10 will not be paid off and high interest will be applied. CitiBank is not helping people they are hurting them. Before I applied for the second transfer I asked the person on the phone how eill the payment will be applied I was told they will be applied to the one that ends first since both were 0% transfers.So please beware of CitiBank.
April 16th, 2010 at 2:16 pm
Elizabeth,
Until your rate increases in July, I would only make the minimum payment. Once one of the rates goes up, any payment above the minimum has to be applied to the balance with the highest interest rate.
As to relying on customer service, I think anything that isn’t in writing is worthless. Hope this helps and sorry they trapped you like this.
April 18th, 2010 at 6:40 am
I just wanted to throw out something that I caught before things got ugly. I have an AMERICAN EXPRESS account that I used for a balance transfer a couple of years ago. I got a really good rate and never use the card for purchases. Apparently they aren’t happy with that. My statement for this month didn’t show up like it usually does. I receive both paper and email statements, so it is unlikely that both would have failed to arrive. I called the automated line and got my current payment and the due date this morning. The payment due date is less than three weeks away and inside the time frame when I was supposed to have received my statement. Call me suspicious, but it looks like AMEX failed to send me a statement in the hopes that I would let it go, get into a late-payment situation and incur a $39.00 late fee along with a monster rate increase. WATCH THIS BUNCH!
April 18th, 2010 at 10:08 am
Allen,
I’ll actually give American Express the benefit of the doubt hear. I really hope this was an honest mistake, as American Express has treated its customers very well compared to most of its competitors. I think if you contacted American Express, they would likely provide a good explanation.
April 18th, 2010 at 10:17 am
Hello: In February I paid off a HSBC card with a cheque from another credit card company to receive 0% interest. The first credit card company charged me $24.95 as a “credit fee” for doing this. I called and told them I refused to pay a fee for paying off the account, and that using a cheque from another company was no different than using a personal cheque. They agreed to take off the fee essentially if I agreed to keep the card (I wanted to cancel). Now I received a statement in which there is a $24.95 “debit fee” for taking off the “credit fee.” In other words, a fee for taking off a fee. I only figured this out after much rumination as the customer service folks were unable to articulate what the fee was for, eventually claiming it was “interest” on something (what I don’t know as I have paid off the account in each of the two ensuing two months). Is this legal, and if not, what should I do? I have already told them I wish to cancel the account (it took about twelve attempts before they would hear this). ????
April 18th, 2010 at 10:24 am
Richard,
Wish I could make a better call on this, but the confusting rearrangement of fees is hard to decipher. In all likelihood, this is legal. It just sounds unethical and I think they have given you a bit of the runaround, which makes the matter worse.
April 19th, 2010 at 11:42 am
Is there really no legal recourse? Is there not a lawyer out there that would help you sue a company in civil court? I have been subject to credit card companies either lowering or canceling my credit accounts with them due to: proportion of balances to credit limits too high on revolving accounts, too many revoling accounts, too high of amounts owed. I had never paid late and continue to make all of my payments on time. Our credit score is like our identity. If someone defames us we can sue them. When a credit card company lowers our credit limit or cancels a card it reflects directly on our credit score. Either the process of the credit score needs to be changed, or we should be able to sue credit card companies for ruining our credit score. I want names and phone numbers of agencies that I can turn to that will voice my complaint so that legislation is changed. I have already sent complaints to the attorney general’s office and BBB. Where can I find more information about the federal legislative changes that have already taken place?
April 20th, 2010 at 10:47 am
Rachel,
The damage credit limit cuts are doing to people’s credit scores is incredible. People who had excellent credit a few months ago are getting knocked down to average and below average. It really is outrageous, but there’s nothing remotely illegal about it. The real problem is the credit scoring process. However, this is unlikely to improve anytime soon.
April 20th, 2010 at 9:19 pm
I have been in a credit card repayment plan for a year with US Bank. It ended in Dec. 09. After I completed the 1st year I received a letter stating I was in the program for another year at a reduced interest rate of 7.4%. I received my bill and saw that I was being charged an interest rate of 20%! I called and they told me I “misinterpreted the letter” and I was not on the program for another year. They said it was just a letter about the plan I had been in, even though it clearly states the terms and says it is in effect for 12 months. I asked to speak to a supervisor and was told “you don’t need to speak to a supervisor”. I then insisted and was put on hold for several minutes. When someone came on the line it was the same person I had spoken with earlier laughing with someone else as she told her what an idiot I was. Then I was disconnected. Now, all I get is a voice mail asking me to leave a message but no one ever returns my call. The letter I received is one that any prudent and rational person would interpret as an extension on my lower interest rate. What can I do?
April 21st, 2010 at 8:09 am
Dorothy,
I would continue trying to contact US Bank, perhaps using a different number, such as the one on your credit card. I would then threaten (and follow through) on filing complaints with your state’s attorney general and their state’s attorney general.
Depending on how much you owe and how much the new interest rate will cost you, it may even be worthwhile to hire a lawyer, especially given the written proof you have.
April 25th, 2010 at 10:42 am
In Fall of 2009 Everyone of my cards used to be a fixed rate of between 6.77 and 12.99%. Then little by little all of my cards from Bank of America, HSBC, Citibank, and yes even Discover and American express changed my normal and lifetime agreements to Variable rates at twice the interest plus Prime. Some of these I closed, or locked in my old rate till I can pay them off, but I had to keep some open for emergencies. I don’t like Variable rates (look at the trouble the home loans have had in the last year)but I can’t find fixed rates anymore.
What can you suggest for customer friendly company, fixed, low or zero balance transfer? I have always paid on time and had my cards for years. My credit rating is as high as it can go.
April 25th, 2010 at 10:44 am
I like your helpful advice and seeing what others have had trouble with too. the site is easy to navigate and find answers to most of my questions.
April 25th, 2010 at 5:26 pm
I have been an American Express customer for 22+ years. Despite having a perfect payment record over that time period, American Express reduced the limit on my small business blue card to less than half of what it was. I’m sure that my credit score will be significantly reduced by this action. It just shows how much all those years of customer loyalty mean to American Express.
April 26th, 2010 at 7:48 am
Thanks for the compliments Bruce. I’m at a loss here: no major banks are offering fixed rates anymore. Everyone shifted to variable rates that, should the economy improve, will increase. That said, if you want a customer friendly company for the long haul, I would definitely go with Discover. Discover and American Express are really the only great credit card companies. All the rest are merely good or worse.
Also, since it sounds like you closed a few accounts to preserve your lower rates, you might want to look at this article I wrote last week about keeping small balances on closed credit card accounts.
Sorry I couldn’t find you a fixed card, but I don’t think we’ll be seeing those for at least a few years.
April 26th, 2010 at 7:52 am
Leo,
If you have strong financials, you can likely get Amex to review your account. They are very good about these things and they might reconsider their action. Also, because this is a business card, it shouldn’t hurt your personal credit.
I would definitely try to talk to them about this, though.
April 27th, 2010 at 9:48 am
Thanks for the advice – much appreciated. Would filing a complaint with the FTC help the overall cause? It would be good to let American Express know the collective feelings of consumers and business owners who are affected by their practices.
April 27th, 2010 at 9:56 am
Leo,
I’m positive American Express didn’t do anything wrong. While its definitely a hassle for you (and I do sympathize), what they did was completely in their rights. It would likely be a waste of time to contact the FTC or another agency regarding this. Also, do let us all know if you are able to get your account reviewed for a limit increase. I realize you’re not very happy with Amex right now, but compared to most other credit card companies, they treat their customers very well.
April 27th, 2010 at 6:44 pm
Thanks again for your perspective – most helpful.
April 27th, 2010 at 7:05 pm
No problem Leo. I hope you can get Amex to give you a fair shot at getting some of that credit line back.
All the best
Jeff
April 28th, 2010 at 1:50 pm
I have a complaint against Macy’s/Citibank credit card. I am well aware of the new law, that applies payments to high interest balances before zero interest promotional items. BUT, when you do NOT have a balance and ONLY have the interest deferred item (6 months in this case) they do NOT apply the payment to that item. It appears on your statement as a negative balance. In speaking to Macy’s I was told it won’t come off until the 6 months is up. This is pure BS. They are holding my money against something I ‘might’ buy on my charge account vs. paying off what is already there. I have nothing on my card, just the deferred item. It doesn’t take genius to figure out what they are doing. Apply all your money to what you ‘might’ buy between now and the end of the 6 month period, and then whack you with interest on the ‘interest deferred’ item because there won’t be enough there to cover it. This should be ILLEGAL. I refuse to use my Macy’s card until they apply my payment to my oustanding balance, which it looks like they won’t do until August. Then, it’s their loss. I won’t spend a dime in that store or else I’ll pay cash. They won’t make a penny on me.
April 29th, 2010 at 8:20 am
Marianne,
This is a new trick. First I have heard of it and I definitely don’t like it. I would report it to the FTC and your state’s attorney general. I imagine Macy’s/Citibank has found a legal loophole, but it clearly seems unethical.
May 1st, 2010 at 8:18 pm
I realize I’m not the moderator here, but –
Has anyone thought of filing a complaint with the Comptroller of the Currency? Forms are online. The FTC does not solve individual problems, but enters them into a database (per their website).
Also — use your search engine for Move Your Money, do your homework, and do it! Move your money — out of the conglomerates and into a small, safe local bank or credit union. Get back! Get even!
May 2nd, 2010 at 8:09 am
Diane,
The OCC complaint form is at https://appsec.helpwithmybank.gov/olcc_form/ and is another good place to file complaints.
I am not, however, a huge fan of the Move Your Money site. If we all moved are money, we’d be bailing these banks out again in no time. If one bank mistreats you, by all means use another. But if everyone started moving their money, we’d be in a pretty dire situation.
May 5th, 2010 at 6:03 pm
I had a corporate AMEX account that had an outstanding balance when I left my former employer. The former employer did not pay the bill for my last business trip prior to me leaving the company. The amount was small, under $250. The account has been cancelled but now AMEX is cahrging me late fees and calling me to pay the bill. I have explained the situation to them without any luck. What should I do next?
May 6th, 2010 at 11:51 am
I’m not sure of the rules on this, especially if your social security number was used, but I am pretty sure you should have zero liability. If your employer was shady, he may have opened the account in your name, separate from the company. This would put the liability on you. I would contact the employer and tell them about the issue. It should not be your debt unless they used you as the primary cardholder to open the account. Hope this helps. Amex is a good company, so you should be able to get this resolved.
May 9th, 2010 at 10:59 am
I wholeheartedly agree with both Bruce and Allen about American Express. I have been a loyal customer for the past 6 years, never late. This past month I mailed in my payment 5 days before the due date. Mailed it on April 17th, and they claim it was not received until April 28th!
When I called them to ask if they would waive the late payment fee of $37, they said no. I kept going up the chain of command and the higher I went, the nastier the “Customer Service” reps got! I was appalled at the things they said to me. When I said that it could have been the Post Office’s fault, but it has never taken more than 2-3 days in the past 6 years to arrive at AMEX. When I ventured that AMEX was not perfect and someone there could have misplaced my payment, it could have sat out on the loading dock, I was told that I was the one who had made the mistake by not allowing 7-10 days for payment to reach them.
I was out on hold by all of the reps I spoke with, and disconnected three times, right after they had given me their horrible attitudes. I have reported the case to my local post office, who shared with me that they have had many similar complaints about American Express. As I said to the Postmaster at my local PO, what’s to keep AMEX (or any other credit card company) from pretending that they didn’t receive customers’ payments when in fact they did indeed. Multiply all of those late fees and they could make a tidy profit at their loyal and trusting customers’ expense.
Anyway, I am livid with this company and their so-called Customer Service. If AMEX is the best of the credit card companies, I’d hate to see the worst!! This has certainly not been my experience.
I have reported this to my state attorney general’s office, 2 Boston area TV stations, and now here. I will also be sending letters of complaint to two different AmEx locations, the Ft. Lauderdale office and the corporate headqurters in NYC.
They have certainly chosen the wrong consumer to lock horms with. I’m glad to be playing David to their Goliath. We each have to stand up and ROAR when the credit card companies try to exert their power over us. Even after the Credit Card Act passed, they are finding creative new ways to wring money out of us.
The CSRs seemed to revel in their petty authority, telling me that I had no recourse. Let’s see how it plays out. Just beware of American Express. And be sure I’ll be leaving home without them!
May 10th, 2010 at 7:24 am
Diane,
I will have to re-evaluate my position on Amex. The recent complaints are among the first posted here since last summer. I’ve always had great experiences with Amex, and I am honestly surprised to hear that they might be using these tactics.
I am putting American Express on my watch list; not getting payments is a very old, very dirty trick made popular by Providian, which was successfully sued. They would literally leave envelopes unopened to collect late fees. I find it hard to believe Amex would sink so low, but it can’t be ruled out.
As to you situation, and anyone else who mails in payments, I strongly recommend using online payment. American Express has a very good online account management interface and when you pay online, you avoid “lost in the mail” issues.
Thanks for bringing this to my attention. I hope this is an isolated situation. We all need a few decent credit card companies.
May 10th, 2010 at 8:20 am
Well, I have done it. Moved some things around, freed up some funds, finally have the mean to pay off my Citi Card. About 12k worth. I am wondering if I am going to end up seeing my available credit limit take a hit just because Citi can and they are probably going to try to screw me somehow. And I am happy to get rid of this balance cause it would be a nice boost to my Credit/Debt ratio. But not if they lower it for some lame brain excuse. Any thoughts or ideas? Has this happened and is there anything that can be done to either avoid this (minus not paying the balance) or take action if it does happen?
May 10th, 2010 at 8:30 am
Venus,
Gonna send you an email just in case you don’t stop by.
One visitor recently wrote on this subject. She said she spoke to Bank of America because they kept cutting her credit limit every time she made a large payment. According to her report, she spoke to an analyst who told her that by paying it down all at once, she triggered a computer setting that lowers credit limits. She was told to scatter her payments in amounts of less than $2000 every few days. You may want to try this approach to see if this prevents a limit decrease. If you have online pay, schedule $1,900 today, then another $1,900 in a few days. Hopefully this will work.
And also, CONGRATULATIONS! Welcome to a credit card debt free life.
Jeff
May 10th, 2010 at 8:59 am
Thanks for the advice Jeff. I will definitely look into doing that. I will also call Citi to see if there are any reports of this happening and also if they tell me no, see if there is something I can get in writing or something incase it does happen. They are done yanking me around. It’s my turn.
May 26th, 2010 at 1:57 pm
I have done 5 balance transfers to my Chase Visa over the last few years, at 4 different promotional interest rates. Since the Credit Card act went into effect (Feb 2010), the second and third highest interest loan balances have been increasing each month even though I am paying well over the minimum payment due. The explanation from Chase is that the Credit Card Act of 2009 forces them to apply the amount of my minimum payment to the lowest interest amount first, then any extra to the highest interest amount, which I understand. However, they state that NONE of my payment goes to the other remaining amounts, not even to cover the finance charges. The result is that the principle balance of those other 2 amounts (which just happen to be the largest 2 balances)has increased each month in the amount of the finance charge, as if I wasn’t making a payment.
I have found where the new laws specify that minimum payments are applied to lower interest amounts first, then anything extra to the highest interest amounts. However, I have not been able to find anything addressing the “in between” interest rate amounts. I find it difficult to believe that the law allows (or mandates) that NONE of the payment be applied to these other amounts, not even to the finance charges.
While I’d like to trust the Chase Bank is doing things correctly, it just doesn’t seem right to me.
May 26th, 2010 at 2:07 pm
Kurt,
I believe, though will look further into this, that minimum payment can be allocated to any balance the company chooses. This would likely be the balance with the lowest interest rate, so they can keep collecting on the high rate balance.
I’m also pretty sure that anything above the minimum must go to the highest rate balance, so you should see whatever has the highest rate decline by the amount you pay above the minimum.
This is not the first time I’ve heard from people about payment allocation lately. I’m wondering if the bank are making “mistakes” and only a few people are catching them.
May 27th, 2010 at 6:21 am
I already paid for the full amount that I owed to Bank Of America. The customer service waived my interest and also the late fee. He toｌｄ me I owed nothing because I paid off on that day. I received a check from Bank Of America recently and it is the interest charge refund. The interest is still accumulating. I called customer service again, they told me it’s valid charge and I still have to pay for the balance.
I don’t think I should pay for it because I double make sure with the prior customer service that I owed nothing. What should I do?
May 27th, 2010 at 8:32 am
Shanice,
First off, I think you should pay the amount before it incurs a late fee. This will only make matters worse, especially if the interest charges are low.
Once you’ve paid it off, I would continue to fight for the money they owe you. Call and get supervisors on the phone, explain your situation, the check they sent you, etc. until you get it.
I get the impression this is a matter of principle, so if that is the case, do fight back. But if it is a small amount of money, you might want to save yourself the hassle of fighting it and just take your business to another company that won’t make these mistakes.
May 27th, 2010 at 9:58 am
I understand the application to the lowest and highest interest rate balances under the new laws. My confusion comes with the payment application to the “in-between” interest rate balances and if the new laws specify how payments will, or can be applied to these amounts.
What I’m trying to find out is if the new laws actually address these “in between” rates or not. While I am sure that, given the option, Chase will apply the payments in whatever manner benefits them the most (after all, they are in business to make money), I, too, though am wondering if they are making “mistakes” and nobody is catching it.
Under the “old” laws, when you made at least your minimum payment due, you were paying the finance charges on all your various loans and your principle balance(s) at least stayed the same. It appears under the Credit Card Act of 2009 (as interpreted by Chase), finance charges are charged and collected but NOT credited to your loans with the exception of the lowest rate loan. On the rest, interest keeps compounding and accruing and your principle keeps going up. This is what I am trying to research.
Thanks for your help
May 31st, 2010 at 3:46 pm
Kurt,
From what I understand, the companies can basically do whatever they want, and therefore, whatever is in their best interests. If, for example, you had two 0% balance transfers on your card and one had six months left and the other 12 months left, they would use the money to reduce the one that last longer, so they can make more in interest.
I doubt any credit card company is going to allocate the extra money in a way that benefits customers.
June 10th, 2010 at 11:14 am
I have a credit card with HSBC!
My problem is that for months at a time they dont send me bills.
I had automatic payment then it stopped because I changed banks. So over that time it was paid. But Since I moved in february I have gotten 2 bills. the months. Then I go through my bills. Pay what is required. A few months later I get another bill with tons of late charges.!!!! This should not be allowed. Not only is it hurting my credit but they want extra money in fees.
I have talked to them twice about this. Said its resolved and then hang up on me !!!!
June 14th, 2010 at 9:00 am
Katrina,
If they continue to bill you for fees, then tell you the issue is resolved, use the online interface to get an answer in writing. Customer service reps tend to lie to get people off the phones. And they generally can’t be held accountable for anything they say. I hope this helps.
July 2nd, 2010 at 11:54 am
The Applied Bank Credit Card charges ridiculous fees any chance they get. I don’t even use the card, but have set up monthly payments with my bank of $15 a month to cover the “monthly service fee” of $12. I also did it in case I ever used the card it would cover the minimum payment. haha jokes on me. There was an $18.89 balance, I paid $15.00, leaving a 3.89 balance. They then charged me a $35.00 late fee. I upped my minimum payment to $30, thinking I had covered everything. This has been going on for 3 months now. My balance is now $116, but I had to pay $131 to close the account. I have used the card twice this year for less than $50 total, and I have paid over $150 in fees. What’s more, they do not have a “due date” on their statements, so how do I know when to have it in by? I make a monthly payment every month on the same date. In one instance the closing date was 5/11, my payment was made on 5/11 and they still charged me a late fee. They are crooks and should be stopped from these practices.
July 5th, 2010 at 12:06 pm
This is absolutely absurd. If you can get this account closed, do so immediately. This is apprehensible behavior and I don’t think its entirely legal.
July 6th, 2010 at 3:27 pm
since coming out of a credit counseling plan, Discover raised my rate from 15.99% to 21.99%. When I contacted them to lower it, they said they had no program available to do this. Funny how it can go up but never down.
July 6th, 2010 at 5:45 pm
Lynn,
I’m sorry to hear about this and surprised to learn that Discover raised the rate. If your credit has been hurt by the credit counseling, this may be the reason, though in most cases credit scores improve. Did they provide a specific reason for the rate increase?
July 8th, 2010 at 9:50 am
I used to rave about AMX, but now I’m telling all that they suck! I just found out today that they decreased my credit limit from $4000 to $1000 because of what they think of what might happen. They said because of the info they got from Experian today. Well I checked my updated credit report 2 days ago and my score was 761. Today, when I verified that the call was being recorded I gave my opinion as to what I thought. Their poor customer service has happened 5x’s before with me.
I have 3 cards with them. Just based on a “hunch” they have raised my interest rates on all cards by 4% without even an option to opt out and said that if I close the card and still have a balance they are still going to charge me the increased rate. Then they decreased my credit limits on all 2 of them and now on the 3rd one. Two of the cards didn’t even have a balance. I’ve been with them for almost 6 years and never paid late, always paid more than the minimum or even never went over the credit limit (even though with one card I am allowed this once a year).
I would use my clear amx card for minor purchases and keep a balance but when I saw how they treated me, I transfered my balancesn to citi and my credit union. I would close the card but that will affect my credit report. So I keep all cards open and use only one card to accumulate reward points. I pay it off within 20 days to avoid any interest but it shows some activity on my credit report.
I depise unfairness! I’m going to write some letters but I don’t know if that’ll do any good. I am also a financial advisor for my church and community so of course I am informing all against AMX.
They’ll be looking for customers like me in the next 5 years when this economy turns, but I will not be there. It only takes one time to do me wrong.
July 8th, 2010 at 11:39 am
Capital One just socked me with a high interest charge out of the blue. Told them I was at 0% (btw, I have excellent credit, etc.). They said that with poor economy, they had no choice but to raise rates and didn’t I get a letter in February? No, I didn’t. Now, I ask you: The company has my phone number, sends me statements each month and email offers all the time, and they’re relying on a single letter (uncertified) to transmit really important info? Is this really considered a good faith attempt to reach customers? Talk about an area that needs regulating. If, as some estimate, two percent of letters get lost, that can easily translate into hundreds of millions of ill-got revenue.
July 8th, 2010 at 12:26 pm
I never thought the sending of uncertified rate increases was fair. Letters do get lost in the mail and I think your 2% estimate left tens of thousands of people in similar situations. The one thing you can do to combat the high rate is to do a balance transfer to a new card that charges a 0% rate. A lot of these deals have been extended to 18 months, so you can save money on interest and stop sending your money to the company that treated you poorly.
July 8th, 2010 at 6:55 pm
There’s a new wrinkle! I should clarify first — I didn’t use that card for purchasing. I just rotated a balance there. As I said, the interest rate on that amount jumped from 0% to 17%. But I just spoke to another rep there (passed from one person to another) who finally informed me that my rate rose simply because my 0% percent period expired!. But wait, I said, I had the exact day the interest was to shift — October 23, 2010! And what’s more, I was told this by a Capital One representative on March 27th! (I have a habit of taking notes on this thing). He said I must be mistaken. Wait a second, you must have on record that I spoke (at length, because it was outsourced) to a customer rep on March 27th? Yes, he said, we have such records. But there is no record that you spoke to any customer rep in the last two years. I mean, what can one say to that? By the way, how hard would it be for the credit card company to list on one’s statement when the interest rate is going to change? Anyhow, I feel like I’ve just been beaten up by local racketeers. There’s really no recourse is there?
July 14th, 2010 at 10:01 pm
About a month ago, I paid in full the balance on my Chase United Visa of $1400 via online payment deducting from a bank account. I recorded tghe authorization/confirmation number I was given at the time.
Today, when verifying that the payment had been made, I noticed that an additional $230 over and above the amount I had authorized had been deducted from my account without my permission. There are no fees or penalties on this card, and I have paid my balance in full each month since obtaining the card.
The customer service rep had no explanation for this additional and unauthorized withdrawl from my account. He said they would look into it and contact me tomorrow.
The way I look at this- this is plain and simple THEFT. What can I do?
July 15th, 2010 at 11:36 am
Dave,
You should be able to request a check for the amount overdrawn. I don’t quite know why this would happen, but they should be able to immediately credit the funds or issue a check. You could have a case if it led to other issues, but it might be hard to get anything out of them other than the money you are owed.
July 31st, 2010 at 6:38 pm
How is this legal? In the early afternoon, I made a payment on the due date (July 15) at carecredit.com, and received a confirmation email that evening specifically stating the payment was posted on July 15. I got the newest statement today, charging me a $39 late fees and showing they posted the payment on July 16. They intentionally waited a day in order to charge that fee. How can they legally do this?
August 1st, 2010 at 10:12 am
Carol,
This is definitely not legal or fair. I would contact them and demand the fee be refunded. You have the email as proof-they should have no option but to drop the charges.
August 4th, 2010 at 7:27 am
Washington Mutual ( WaMu) was nice enough to give me an unsecured credit card with a decent line of credit. . A few years later Chase purchased WaMu and they sent me a bunch of literature promising nothing would change. In May I decided to pay the card off.
Then I find out that I was 31 days late paying off the interest… who charges you interest after you pay a card off. This notice came via email so I ignored it because I figured they were wrong I paid the account off according to what the website said I owed. I called and and they removed the late fee. Who does this?
August 4th, 2010 at 7:28 am
Then a week after I pay off the interest charges (remember the card has been paid off) Chase decided to drop my line of credit by 80%. I promptly called the credit card company and was told by a very RUDE “portfolio manager” that because I filed bankruptcy 4 years ago that I did not fit the standard set by Chase. She stated that Experian was showing a negative account on my bureau and between that and my bankruptcy I did not qualify to have such a high credit limit. I nicely explained to her that I got the card after I filed bankruptcy; she said we have different criteria than WaMu. I then told her that I have been faithfully paying this account on time for three years and have proven that I can handle having a substantial credit line. She nastily told me that the decision was final and I could accept the line of credit or close the account. I then said how the hell JP Morgan Chase get a bail out for 25 BILLION dollars from my tax dollars and say that I am not worth a line of credit. Not to mention the bail out was not used to make new loans….but to purchase more companies! I asked her who I could complain to because this was not acceptable to me. She smugly said, “ the decision in final.” I then said what could be done to increase my credit line, she told me to send in a copy of my pay check stub and proceeded to give me a PO Box in Delaware. Really…. Have you ever heard of anyone sending in a copy of a check stub to a credit card company? I then told her that I did not like the way she was speaking to me. She said I am not speaking to you any kind of way. I told her to close my account because I did not have to be mistreated by the person I pay to give me a line of credit and if I was not deserving of a substantial credit line, they were not deserving of my business. She closed the account and ended the call with a “you have a great day”. You know she said it in way like, I hope I ruined your day and this is my way of giving you the final jab before I let you off the phone.
I was more pissed when I hung up the phone. But I decided to calm down and call back. I called back and I reached a person that sounded delightful as soon as she answer the phone. I told her that I had just been treated rudely by one of her co-workers and I wanted the person’s name so I could include it in my complaint to the company. She said she could not give the person name out but would like to hear what happened so she could elevate to a supervisor. I explained the situation and she was apologetic and asked me some questions about my credit and took my gross pay over the PHONE…. in under 15 minutes my line of credit was restored!
It seems that credit can be given and taken at the discretion of company workers……….NOT your FICO score….NOT your payment history. It makes me really wonder what the underlying reasons could be. Yes I know the country is in a credit crunch but then again Black people have always been in a credit crunch.
August 4th, 2010 at 8:34 am
Shelly,
I am happy to hear that everything worked out in the end. Oftentimes, if you get the wrong person on the phone things can work out poorly. Your diligence clearly paid off and I hope this story inspires others to aggressively pursue fair treatment from their credit card companies.
August 4th, 2010 at 8:45 am
Oh by the way I dont wont my last comment to be taken out of context. I was blogging about my experience and doing my research it was determined that many minorities have higher APR’s. But after going on blogs and reading other people issues, maybe it’s not so black and white after all. All the lending institutions see is GREEN
August 4th, 2010 at 9:35 am
Shelly,
Problems with huge credit limit cuts after large payments have been impacting everyone. And you are right, the only important color is green. However, while it is illegal to discriminate based on color, I too have read many anecdotal reports as well as some studies that show a bias against minorities. In your situation, however, I think you got caught up in the same tactics that are being applied without bias to millions of Americans.
August 17th, 2010 at 2:58 pm
I just got done speaking to a manager at Citicards and debating with her the balance transfer I accepted with them last month. They sent me four checks with the balance offer, saying I could have a 0% rate until July 1, 2011. I am remodeling the kitchen and bath so decided to do the 0% interest instead of a home equity loan at 5.5% and pay off most of it by next summer.
Well, imagine my shock when I got my statement and the amount was under an “Advance” at 25.99%!!!!! I called and was told that somewhere on the offer in small print, there was a statement saying if the checks were made out for personal use (cash, your name, etc)……then it was 25.99%. The 0% offer only applied to checks made out to CONTRACTORS. Has anyone ever heard of this??? I was NOT amused. The only thing I saw on this offer was the 0% until July 2011. Nowhere was there 25.99% printed on the checks.
She finally put me through to a manager and they gave me the 0% for this instance only, and then lectured me to read more carefully. ARGH! It seems criminal that they can get away with that wording and put it in tiny letters somewhere without making it clear. I asked to see a copy of the offer, and she claimed they didn’t have it…..that my copy of the offer was gone once they mailed it to me. I shredded it after using the check.
Thanks for letting me vent!
August 18th, 2010 at 10:31 am
Lucia,
Thanks for sharing. I have been advising people not to use balance transfer checks or cash advance checks for quite some time for this very reason. The terms are often unclear and it is possible for these checks to bounce (See Consumer Advisory on Balance Transfer Checks for similar stories.)
Fortunately in your case, Citibank appeared to the right thing. Unfortunately, people who do not speak up or pay attention will likely not get the same treatment.
August 27th, 2010 at 5:13 pm
HSBC……due to pay cuts & furloughs, having a rough time as are many others. I have other cards; Juniper, Chase, but they have been manageable because my payments are smaller. When this credit crisis hit last year, HSBC immediatley raised my interest rate AND the minimum monthly payment. At first is was manageable but then when the furloughs & pay cuts hit and several emergencies happened, I had trouble making the $150 on the HSBC. I immediately called them and explained the situation and that I could only make a payment of $75.00. This was to be temporary as once things settled down I would be able to go back to my standard payment. Once I reached a person, everytime I said 75.00, he said 150.00, and late fees and over limit fees, etc. it was pretty clear that this was going to be a struggle. I asked for a supervsior and was told “no” and they would gladly take a check over the phone for my 150.oo payment. I now refuse to talk to any of them and I do everything strictly by mail. Hmmm..how convenient that they have not cashed my $75 I mailed on AUGUST 4. I’ve already filed my complaint with the FTC and I am in the
process of writing to my Congressman. Any of you having same problem with HSBC and if so how are you dealing with it???
God Bless & Good luck all!