I had previous experience with Bank One (now Chase) which upset me and I closed the credit account and got a prime for life card with Wachovia.
After a couple years, Wachovia sold my account to Bank One, but left the prime rate so I kept the account.
I had a few hundred dollars as a cash advance and several thousand as purchases. For most of the life of the card it was a prime rate card with a once a year fee of $80.
About 2 years ago I hit the maximum and kept paying off the minimum and then using the rest of the balance for expenses. I was allowed over the limit without any problems.
About a year ago I was capped at my maximum and they started charging $39 when I made charges that forced the balance over the limit.
I was always careful not to be late with payments twice in 6 months because thats when they add the default rate.
But my behavior remained the same, most months getting an over limit fee when I caused my charges to go over limit, but only if charges did that.
In January I find that some rules changed - I assume it was mailed and in the tiny type - But the following "surprises" occured:
= With an explanation basically saying - we did this because you went over the limit too much I get:
- My cash advance rate jumped to 22%
- My charges rate jumped to 12.75%
- although I did not go over the limit, the interest did so I got a never before seen fee for the interest causing me to go over the limit of $39
So my minimum payment doubles due to the new fees and interest. How is this supposed to encourage me to like them. Obviously if I am at my limit I am having some problems with cash flow - so they kick me when I am down.
I refinanced the house and sent a payment in full to "get rid" of them.
I think these tactics are unscrupulous and for most people who do not have the option of refinancing, it upsets the financial balance for people who are barely getting by. I guess they were trying to get me to default so my rate would go over 26%.
What use is that - by forcing someone to pay more, they are essentially encouraging people to stop paying them. This can cause more defaults and write offs - how is this good business? For people like me, I refuse to do business with them again for this treatment. Predatory behavior like this will not help this company - they either get defaults or resentful customers who want to get rid of them.
As I mentioned above, I think they assumed that they had me trapped with no where to go. Very bad ethics! Shame on them for doing this.
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