While I’ve only heard a couple complaints from consumers who called to opt out of their credit card contract before a rate increase, enough people have written in to concern me. At first, I thought perhaps the customers had made mistakes. But given the current behavior of credit card companies, I’m inclined to believe visitors that take the time to share their stories at Smart Balance Transfers.
A visitor posted a story about an opt out that his credit card company failed to recognize, which is re-posted below. However, given both the behavior of credit card companies and the huge potential for miscommunication with foreign based representatives, I strongly advise all consumers who choose to opt out of their credit card instead of accepting a rate increase to do the following:
1.) Call as soon as you receive the opt out notice in the mail.
2.) Request a notice that you have chosen to opt out via mail or in some other form of writing. Most large banks have email setups. You can use the email in your account to verify (and get in WRITING) your opt out.
3.) Call your credit card company a few days after you call to opt out and verify that your account is set to be closed. This is for peace of mind, though an email or letter is truly the only way you can prove that you have opted out.
Apart from these three steps, opening a new credit card account with a different company should also be considered. This will not only give you a new line of credit, but can help offset the damage closing a credit card account can do to your credit score. Additionally, once your account is closed the impact of an opt out/account closure could lower your credit score significantly, which may make it difficult to get approved for a credit card a few weeks or months later. (You can review 0% credit card offers as well as free credit score options in the appropriate sections of Smart Balance Transfers.)
Finally, just in case you wanted to know what its like when a credit card company fails to properly note an opt out from a rate increase, here is a credit card complaint from Robert:
“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.”
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July 11th, 2009 at 9:26 am
there is no such thing as “no balance tranfer fee or 0%”- the credit card/banks make interest and more as they charge a one time processing fee or that 3% you pay of/on whatever you transfer. You are better of staying where you are. That money you pay could go to the next payment of that card you want to get rid of. Think about it. Why should you pay anything if it is “0%”- then of cause at the end of the month another bill comes in like clock work.