I have a Visa issued by WAMU which was bought by Chase. I received my statement Thursday which showed my APR had skyrocketed to 31.99%! My minimum payment had jumped over $75 additional dollars a month. I called them and asked why my rate had changed. I was told that I went over my limit back in June by $45 and was not being punished with my new rate. I told them that there was no way I could afford that and that even paying more than the minimum due of $330 such a small percentage would go the prinicipal that I would paying this off for years. I asked if I could close the account and have the rate reduced and was told that they don't negotiate rates and basically I could either pay or default.
I don't have the best credit but I have always paid the bill on time and over the minimum due. Last fall, Bank of America contacted me regarding my equity line and told me that if I closed the account, paid my bill on time, they would reduce my interest rate to 4% and my payment would be a standard $400 a month. At least they would work with me.
Suze Orman reported one night on CNN that since passing the law that goes into effect in 2010 regarding credit card policies, credit card companies have been terminating and raising rates at a prodigious rate so that they can, as she put it, "rip off as many people before the law changes as possible." She believes that Congress needs to step in the force these institutions change their negative policies so that more people would be willing to try and pay off their legitimate debt instead of saying "screw it".
I have emailed the Senate Banking Committee to let them know what one of the companies they gave all that money to is doing to people who are trying to pay off their bills and are making a conscientous effort trying to meet their obligations.in the case of Chase, default is looking better than trying to work with them.
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