I took over my mother's financial affairs almost a year ago. Sears took extreme measures to make sure she remained a paying customer. I discovered that her rate was well over 30%. Her credit limit was over $13,000. (She owed about $4,300.)
They clearly preyed on her inability to handle her finances. After about 4-5 months of her inconsistent, late, low payments, they finally froze her limit to the amount owed.
Living on social security and a very small pension made her payments impossible to keep up with. (She qualifies for many government assistance programs)
I called Sears credit. They said to write a letter and include my power of attorney papers. I wrote a letter explaining the situation. I stated that she could afford to pay only about $150/month. I asked if they could lower her rate. I sent a copy of my power of attorney for finances.
I called again. They stated that my power of attorney was invalid. (??? WI no longer requires a raised seal.) It was/is current and indeed valid. I even checked with my attorney. They wouldn't work with me. (I had MUCH better cooperation and happier results with four other credit card companies)
Sears was happy to sell her a new dishwasher, garbage disposal, pieces of furniture, etc. Even though she couldn't drive, Sears - Shop - at - Home - Sales took care of that. Convenience checks arrived monthly, even if she was not current with her payments. She used these to pay other bills.
I took over all bill paying, the checkbook, and credit cards. I directed her payments to Sears, catching her up within 3 months. (The bank deemed my POA valid, without question.)
At the beginning of the year, a loan was taken out on her life insurance policy. Paying off Sears was #1 on the list of debts to pay. A large amount was then paid to Sears each month, well over the minimum. Her rate was raised to 31.4%.
Payments over the minimum continued to be made, her rate was raised to 31.49%. After paying well over the minimum for several months (and Sears requiring no payment???), her rate was again raised to 31.79%.
She now owed less than $500. At the time of the final payoff (May), Sears had her at 31.99%.
A quote on the statement-
If you pay more than the total minimum due, we may reduce or not require a minimum payment for up to 2 billing cycles. If you choose to make the reduced/no minimum payment, you will not reduce the balance on which you pay finance charges as quickly. You may choose to pay more. The sooner you pay the account balance the less you pay in finance charges.
They never stated why the rates went up and up, even with consistent, monthly, timely payments (well over the limit) for the final 4-5 months.
I will never do business with Sears and have been spreading the word. I feel like they have ripped my mother off for thousands of dollars, for many, many, years. Not a way to do business.
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