Complaint / Review
American Express
Because We Can! Changed my interest rate to prime plus 21.99% because, "Our recors indicate that another account in your name was not maintained in keeping with our terms."

Because We Can! American Express changed my interest rate to prime plus 21.99% because, "Our recors indicate that another account in your name was not maintained in keeping with our terms."

I have had an American Express card for 20 years. I have 3 separate cards:
1. Gold card which I pay the balance monthly.
2. Optima card which if I don't have enough to pay off the monthly I charge to this card.
3. Costco American Express card with limit of $2000.

Recently I received a notice from American Express saying that the rate on my Optima card was going up to a variable rate equal to prime rate 21.99% or currently 27.49%! The letter said, "We have taken this action due to the following reasons:
Our records indicate that another account in your name was not maintained in keeping with our terms."

I called and tried to talk with someone about this outrageous rate and was told that on my #3 Costco American Express I was late with my payment last October. I told Ms. Gallant that said I never more than was one day late on any payment. Also, that they charged me a $35 late fee - since then I learned to be on time to the date!

The card where they are raising the rate is not even the card where my payment was 1 day late. Ms. Gallant said it didn't matter, I was still late and they could therefore up my rates. I asked what is the purpose of raising my rate? It seems to me that you offered me a low rate, get me locked in so that I have debt and raise my rate so that I can never get it paid off.

A supervisor, Mr. Alkema called me back and said the same thing too bad for me, I didn't deserve the lowest rates because I had been late with a payment last October. I said one day late and you raise my rate to 27.49% does not seem legal or very customer service oriented. Mr. Alkema That's when he got upset and said that yes it is legal. I asked what was the purpose of raising my rate? He said there is no purpose to raising the rate. I said yes there is so your company can make more money and lock me into debt forever.

It does not seem fair what these credit card companies are doing to get people into debt with a teaser rate of 2% or 4% and now when I am at the limit raise it to 27%. This is an outrage. It this standard practice? Is this legal???