In Aug. 2008 US Bank had a promotion for a Premier Credit Line Plus. The promotion detailed that if borrowed more than $2,500, setup a checking account and allowed auto payment debit you could be approved for a credit line with an interest rate of PRIME 2.75. This equaled an interest rate of 5.99%.
I opened a 10k credit line with this program; consolidated 2 credit cards. I signed a contract with the bank stating that because of this promotional program, my interest rate would always remain PRIME 2.75. The conditions stated that if I never missed a payment, and never increased my original balance, my rate would remain at agreed amount. My monthly payment was based on a 5 year term.
Now 1 1/2 year later my interest rate has increased to PRIME 8.5. This equaled an interest rate of 11.75%. Since I have had this line of credit I have conformed to all requirements of my contract. I have never missed a payment (have auto pay setup), I still have my checking account with US Bank, and I have never borrowed more money since the original 10k.
After speaking with US Bank they claimed a notice was sent out in November explaining the terms of my original contract were changing and I had the option to opt out. Allegedly this notice stated my interest rate would be increasing unless I closed my account and opted out of the Premier Line. Since I never received this notice I did not know that my original contract terms where changing and I did not opt out.
US Bank said they mailed the notice. I asked for proof that it was delivered; as we all know the USPS is not perfect and do occasionally mis-route mail. The bank said that legally they completed their due diligence by mailing the notice and it was not their responsibility to confirm I received. They also said the contract I signed stated that my credit line was subject to change at the banks discretion. I requested a copy of that contract as the one I have does not have that language written. The bank refuses to get me a copy of this alleged contract and stated I must subpoena them in order to obtain a copy.
I am now stuck with a large balance at an interest rate much much higher than I originally agreed too. I was a recipient of a bait and switch by US Bank. I have tried to resolve this issue with telephone customer service, including upper level management and at the branch where I original created the credit line. The Branch Manager sympathized with me and agreed I was getting "slapped in the face" by her company unfairly. She then said that she does not have control of the interest rate and contract adjustments at the Branch level. She contacted her corporate office on my behalf and achieved nothing. I am stuck!
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