Early in March I received a folded pamphlet (almost thought it was junk mail) notice from BANK ONE stating that my interest rate would be changing from my current rate of 5.4% APR to the new rate of 13.99% due to changing providers (FIRST USA BANK?) on this account. It also stated that:
IF you wish to reject these terms, and close your account, you must notify us in writing by March 27 that you wish to reject them. IF you give us notice in writing that you wish to reject these terms, you may not make any more charges to your account. You will, however, be entitled to pay off any existing outstanding balance on your account under your current terms.
It also explained that by not accepting the new rate I then choose to cancel my charging card privileges. It also stated that by using the card it would result in me accepting the new rate on the card after April 1.
I have always paid my bill on time, never late, have always paid at least the minimum payment and have never gone over my credit limit. Therefore, I should not have been have been punished for any of these situations which might result in an interest rate increase.
I wrote a letter, mailed in time (allowed 10 business days, and requested to close account) - Then when I got my bill it showed an increase to 19.99 % from 5.4%. They indicated it took 17 days to receive my response from them. *17 days first class mail from Michigan to Delaware... That seems a little excessive.
I called 4 times to hve this corrected with no luck at all. I have paid the last two months balance at the 19.9% waiting a correction to this matter. I have filed a complaint with my Attorney General Mike Cox (MI), The Board of Governors of the Federal Reserve System Division of Consumer and Community Affairs, Comptroller of the Currency Customer Assistance Group, MasterCard International Incorporated, along with Bank One CEO Jamie Diamond. Do you have any other suggestions for me?
Can they increase your rate without cause?
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