Earlier in the year, when credit card companies were raising interest rates into the stratosphere, I started advising consumers to get on the phone and politely annoy their credit card company into lowering their rates. Many people who were slapped with interest rate increases were offered the chance to opt out of the rate increases by closing their credit card accounts. However, credit card opt out notices suspiciously looked a good deal like junk mail, and many simply tossed them in the garbage. A few months later, APRS that were once in the high single digits skyrocketed to 15, 20, or even 29%.
Fortunately, consumers have had success fighting back. Yesterday, Dominic wrote in to tell us how he got his interest rate increase nullified:
“I went to pay my bill today and found [that his rate had been increased]. I also never saw the rate increase notice in the mail so my option to opt out had expired. I called and talked to three levels of customer service and demanded to be placed in the opt out program. Just keep asking for the supervisor, which even then didnt help me. I spoke to the supervisors manager and after much persistence they allowed me to close my account at the original 6% interest rate. Their 30% apr is such a scam. The 22% option was such a joke still! Dont take their no’s for a answer, remember you are paying money to them, they should work for you!” http://www.smartbalancetransfers.com/blog/2009/07/citibank-raises-interest-rates/#comment-6105
As Dominic’s story makes clear, getting an interest rate increase reversed is not a simple process. However, as I’ve repeatedly stated, persistence does payoff. If you are unsuccessful one, try again. And again. And again. Always be extremely polite and always ask for a supervisor (or a supervisor’s supervisor). If you do not succeed on your first or second call, continue to call until you get the result you desire.
If, after many calls, you are unable to get a rate reduction, seek out a credit card with a 0% balance transfer deal, such as those found on Smart Balance Transfers. Accepting an interest rate in the high teens or twenties can cost upwards of $200 for every $1,000 of your credit card balance every year. If your current company insists on charging you an absurd interest rate, then finding a 0% balance transfer credit card should be a big financial priority.
