I have had a fixe rate loan with Capital One for several years which was never paid late. The rate was 3.5% They sent a notice telling that I either had to pay off the loan or have the rates rise to 13.5% this is over 400% increase in interest rate! Isn't this illegal? I want every government agency that watches over lending institutions to contact me. If I sign up for a fixed rate loan, how can they change the terms of the loan if I didn't pay late? This was not a sort-term teaser rate, it was a fixed rate loan. I also read in the paper work that the current balanance would not change, just new charges, however, the person at the 800 number claimed that the notice did not say that. Why did I read it and remember it?
How is this any different than a person obtaining a fixed rate mortgage loan at 5% and having the mortgage company contacting them 3 years later and telling them that the rate just went up to 20%.
Please, news agencies, class action lawyers, contact me. I want this on the cover of Time Magazine. Not just for me, but for all the credit card consumers. I am a responsible borrower. This is my only credit card loan. My credit score is in the high 700's. It was a fixed rate when I took it on. I never would have signed up if it was not a fixed rate. It is illegal to change the terms of a fixed rate loan.
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