I have had an Old Navy card for about 8 years now. My account was eventually changed from a regular Old Navy store card to an Old Navy Visa. I had never had any concerns with Old Navy, and always bought all of my children's clothes there.
About three months ago I receive a notice saying that they were reducing my credit line from 5K to 1k... I didn't have a balance on the account. This really didn't bother me because I never charged more than $300 on the card anyway. Last month I received my May statement (on 5/21), and there was a change of credit agreement included. They were increasing the APR form 12.99% to 27.99% to maintain profitability on my account. Keep in mind that I had never paid a bill late and have a 750 credit score. On my May statement I had a balance of $113.25 because I bought my two-year old some clothes.
However, GE Money Bank does not allow you to opt out over the telephone, you have to write a letter stating that you are opting out and the card has been destroyed. Although inconvienent, I typed up the letter and mailed it along with the the card (cut-up) the next day on 5/22. On 5/31, I received a letter from GE Money Bank stating that they had received my letter, but "unfortunately we did not receive it before the date indicated on the agreement and the change of terms has already taken effect on your account." They even has the nerve to say that they hoped I still used the card because of the many benefits and went on to detail them. I called GE Money Bank to ensure that my account was closed, which it was. So they locked me into the higher rate, and closed the account! Most people accept the rate to keep the account opened... I closed the account to reject the rate. Seems a lot like double jeopardy to me.
GEMB does not even give customers the opportunity to close the accounts. It's like they set you up for failure. It is very unfortunate that they are taking advantage of people that are trying to do the right thing. I fell really bad for people that may have done the same thing that I did, but have a large balance that they have been locked into with the higher rate.
I am so glad to be done with GEMB... They lost a good customer.
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