After MBNA America in 2001 sent my wife a letter stating pre-approval for a set amount ($25,000) with a fixed interest rate (9.99%) we deciding to consolidate some debts. We had another credit card from MBNA which we kept the balanced paid off.
By early 2002 they jumped the rate without notice to 19.99% stating that my wife's credit rating had changed. This was all false so I contacted them and they agreed to drop the rate to 10.99% even though we signed on at a lower fixed rate.
In August they increased the rates again to 19.99% stating that we were not paying off the loan fast enough. We were never late on a payment and received no correspondence earlier stating this concern. I again told them this was outrageous and could not afford the payments. We had budgeted around the original agreement on what we could afford.
They agreed to return to the 10.99% rate. They did but only after two months of the higher rate. I refused to pay the extra money incurred during those two months and only sent them what I normally would have paid them plus a little extra.
I'm still doing this almost 12 months later and they are hitting me with a $39.00 late fee every month. Funny they haven't gone up on my rates since then. Probably because the late fee goes into some other pocket that's not accounted for.
I have not decided what to do but I'm getting close to retirement and getting more stubborn with age when I'm done wrong. I know that in the state of Texas that my wages can't be garnished due to this type of bad debt nor can a lien be put against my home.
Don't get me wrong, all my life I have paid my debts even during the worst times. It was a blessing to find this web site to let me know I'm not out there alone when it comes to these rip-offs.
It gives me strength to stick to my decisions.
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