Absolutely furious!!!

Wow Amaranth, something is wrong with this picture! I honestly have no clue what their legal rights are as far as increasing your interest rate out of the blue for no good reason, unless your contract states something to that effect I would venture to say they are trying to screw you. If I were you I would be doing some research at the DFI site to find out just what the laws are regarding interest rate increases! Keep checking back, as I am sure that someone with more knowledge in this area should have some information on this subject. Doesn't it just irk the heck out of ya when you receive news like this when nothing is opened! :shock:

Have you by chance been late with any other creditors recently? Many CC look at your CBR and if you are late with others, they raise your apr....NOT FAIR, But legal-- thanks to our lovely government, however I did read somewhere that there is a bill on the table to make that illegal, but who knows when that will take place, Reny

Hi-

I am not late with ANY of my creditors, nor have I ever again. That's another reason why I am so furious. I have 0 negatives on my credit report; 0 collections, 0 charge-offs, 0 over-the-limits, 0 lates. I just have a crappy FICO score because I have SO MUCH debt. So it really makes this situation seem like they are doing it for no good reason other than that the banks are really hurting now, and just because some consumers crap out on them, they think they can make up for the missing money by finding ways to sneak it out of those who have worked so hard to keep their credit clean.

Thanks for your input so far, guys. I know most creditor contracts say in the fine print that it's at the creditor's discretion if and when they increase your apr, but how can they possibly justify raising an account in perfect standing by 14% APR? That is outrageous!

The government is so busy bailing out the banks and lenders that they aren't paying any attention to the unfair lending practices that completely paved the way to this crisis. American credit needs a SERIOUS reform. I feel like I am playing this giant game that I can never win. Sure, here's your credit, consumer! And whether or not you are an AAA+ or major Fail, we'll still make it absolutely impossible for you to get treated fairly or scored fairly. We'll tell you how to make your credit good, but we'll do everything possible to hinder you, and then go back on our word and still find ways to rob you blind!

Grrrrrr......

Mine was increased on my only card a few years ago due to high utilization and only having one credit account other than my mortgage. When I called to complain, they made it seem like it was my fault that I only had one card. I thought I only needed one card? Anyway there was nothing they would do to bring it down, I had to pay it down substantially to get them to drop it. I was much better off in the end, but it still pissed me off at the time.

When you call, stay calm, be nice, and work your way up the chain of command until you can't go any higher. It still might not do any good, but it is worth a try.

Good luck, and let us know how it goes!

Yeah, Amarath, that's the only reason I can think of as to why they raised your apr so high; you had either been late with HSBC or another creditor. I would definitely call them on Monday and get a logical answer why.

Good luck with that. Sometimes you would get more of a response from a wall than you will talking to the majority of front-line customer service reps on the phone. I know, I used to do that kind of work many years ago. Sometime all the required you to have was a pulse to work on the phones.

Not knocking all CSR reps out there at all. So please don't anyone take offense.

As for your comment on the bailout: you are so spot on. We make bad decisions about our credit or get behind for reasons beyond our control and we get hounded and harassed by OC's and CA's, or even sued. Financial institutions do the same thing the government bails them out.

Now, here's how I think this bailout thing should pan out. Rather than giving the money directly to the financial institutions, why not find out exactly how much each person is in debt, or rather past due on, and then give them that amount, with the requirement that is be used to pay off your bills that you are behind on or have defaulted on. We get our past-due debts taken care of, and the financial institutions still get their bail-out. Win-Win for all involved.

Of course, for logistical reasons (too numerous to list here), this will never happen. It's nice to dream, though.

You may want to make sure the cc company has all your payments listed Timely. One of the well known CC is notorious for saying you paid late (maybe one day) and will deny giving you credit increases or jump your payments. I was paying on the website and the jokers still insisted I was not paying on time. Now I am in a boat load of trouble with them. Just beware because most cc companies can be devious about collecting late fees, over the limit etc.. I will never want to see another cc after the experience I have had.

BOA did me the same way, they raised my interest rate from 5.99% to 15.99% for no reason, when I tried to get them to lower my rate back to what it was, they refused but lowered my credit line instead. I stopped making monthly payments because the payment no longer covered the interest. My account was then charged off and sold to a JDB and another, and another, etc.

Actually, I have an idea for the bail-out, too. Why don't we offer the financial institutions a loan with an apr of 99.9%, have the first several "payments" only go towards useless "rollover fees" and not the principle, have an early pay-off penalty, and then "accidently" debit their account 2 days before the agreed due date, thereby overdrawing them, and then threaten them with jail time the moment they miss a payment. :twisted: I think you all get the picture..... :twisted:

Have you called the credit card company yet this morning?

I did. They told me "too bad, so sad". They said I was sent an "opt-out" notice in the mail, which I never received. I just want to scream.

They said, "we can't reduce the rate. We can't."

And I said, "Yes you can! You can reduce the rate at any time! Some people let their accounts go late 60-90 days and you guys reduce their rate for them just to get them to pay again! I could go to a debt settlement company RIGHT NOW and get a lower percentage rate out of you!"

The supervisor went dead silent for, I'm not kidding, more than a minute, until he finally stuttered, "well, we would hate to see you do that...."

So I said, "Well, then reduce the rate now!" and he kept saying, "We can't do that."

I am in absolute tears. I am trying so hard to pay down my debts and get ahead and I'm working a second job I absolutely hate to do it, and I feel like I am being cheated and robbed. Why is there not a law against this kind of credit abuse? I will never be able to pay off a $7,300 balance at 26% apr, especially with all my other debt I am juggling.

I am so angry I want help. Is there someone or something I can report this to?! What can I do?

I used to do this years ago, but does the old 'I want to close my account' trick still work? I used to always get amazing apr's by doing that since they don't want to lose a customer who always pays.

Nope- didn't work. I started out completely friendly and all, too. I reminded them repeatedly that I have never ONCE been late, or overdrawn with them or ANY of my creditors. And all they said was, "Well, we can close your account. But you're still gonna have to pay 26.99% whether it's open or closed."

Household Bank is a greedy bunch of pigs. Out of sheer frustration, I've been looking online, and am finding tons of complaints from other cardholders claiming that their interest rates have hiked up as high as 29.9% even though their accounts are in perfect standing with HSBC and that customer service is rude and of no help and had no valid justification as to WHY the rate was being raised as high.

Seriously, if my account is IN GOOD STANDING, and they are going to raise it to 27%, I might as well stop paying them altogether because that's pretty much the rate of an account that is past due!

That's a shame, the only time a credit card company actually closed my account without offering me a low rate to 'stay' was Direct Merchants and they were the biggest bunch of lowlifes in the world.

I really hope that bill passes that stops credit card companies from penalizing you for mistakes made elsewhere.

The sad part is, I have not made any mistakes anywhere. My credit history is 100% clean and free of any negatives. The one thing that is counting against me is card utilization and high balances- things I didn't know adversely affected credit until it was too late.

how long have you had this credit card?

duh I just saw you said 2 years ... well my case was basically the same as yours, high utilization etc, but I HAD been 1-3 days late on a few occasions so my case was actually worse. But I had the card for 10+ years so that probably helped me a bit.

What I did was write a letter to the CEO, the name and email address was posted for me here by a kind member who said it was found using google. I wrote an email explaining my personal situation, and I believe I had a call within a couple of days. The person who called worked in the "executive offices" and deals with problems like mine. I don't know if that would work for you, but it did for me!

Okay, if you don't mind your personal business being public, have you thought about going to a local news stations with your story? It might help, if you can get them to take the story.

Just a thought.

Opt-out notice? To keep you rate from being jacked up? I've never heard of that before, must be a new trick HSBC is trying. And you're correct, they are horrible to deal with!

Otherwise, I would take Smod65d11's advice and start writing/emailing every executive in the company. Don't go through customer service again, as they are probably correct when they say they can't help you?

Also, try filing a complaint with your state's Office of Financial Regulation. It couldn't hurt.

HSBC has sent me the same letter, I have had the card 5 years and never made a late payment, or used more the 35% of my limit. I called they said they can raise my apr, as per the contract, when I accecpted the card. The only offer was I could cancel the card and pay the regular 8.99% until the ballance was paid off. That is an option but it will make my credit score go down for a canceled account. I have heard Suzie Orman and others say thats legal for the credit card companys to do, And the customer is out of luck. Your good standing has no impact on there ability to raise your APR or your minimum payments. It almost seems as if they do want you to go banrupt or cancel, just to get your account off the books. Don't forget not to use your card for 90 days before you claim bankruptcy, so the total amount will be eraced.

You feel the CC companies are greedy and taking advantage of you and I think you are looking for sympathy (which every other poster has supplied) but I am going to tell you the truth: you and only you are to blame for the huge debt and the changes in your interest rates, not the credit companies. I know it seems 'unfair', but you choose to do business with these companies on their terms, no one forced you.

I do agree that it is 'unfair' and frustrating that the CC companies can raise (or lower) their fees and rates at anytime, but, in their defense, I'm sure that the contract that you signed with them initially stated that they reserve the right to do just that; and you agreed to their terms.

I applaud that you are working hard to pay your bills and don't want to default, but maybe you should stop blaming others for your mistakes, stop using your cards and take a look at what habits/behaviours got you into this mess in the first place.

Credit Card companies are required to send you a user agreement every year. I would check your user agreement and see if there is anything that says something about the intrest rate. I know it sucks and you are angry but from my understandings on how credit card companies work, they haven't done anyhting wrong.

Yadda, Yadda, Yadda!

Devil's Advocate, let me tell you about the poor credit card companies.

There's a really big credit card company, I'm not going to say the whole name but it begins with Citi, that started whining for their cut of the bailout. To the tune of 326 billion dollars. They've also announced they are going to lay off 52,000 employees next year. It's also been stated they might have to sell off parts of its company or merge with another to survive.

Seems they're really on hard times, wouldn't you say?

Oh, say it ain't so, Joe! Through all this hardship, however, they still managed to agree to a 20 year 400 million dollar naming deal for the new New York Mets' stadium. Citi Field.

This company is notorious for raising a cardholder's interest rate, on quite large balances I might add (how convenient for them?), based on the customer having one late payment with another creditor. Even though that customer's payment history with them is spotless.

Seems pretty irresponsible of them to spend money from one hand while holding out the other for a bailout. Maybe this company could stand to follow some of your advice and look at the habits/behaviors that got them into the mess they're in and stop looking for the taxpayers to bail them out.

The same tax payers they're financially raping!

Oh, and FYI's advice is right on target.

You should always read those user agreements/change in terms you get from your financial institutions' every year. They are pretty eye opening sometimes. Of course, if you don't "agree" to the new terms, usually the only option is to close the CC; however, it's best to be aware of any changes they may try to sneak by you.

I was not actually trying to defend the 'poor CC companies'; in fact, I am fully aware of how greedy and corrupt they are. I personally think there should be more federal laws governing the credit and lending business, limiting the amount that these companies can exploit consumers.

I am just tired of hearing people cry foul of these companies AFTER they impetuously sign a contract without truly understanding the possible consequences (read the fine print!), then racking up huge debt and getting themselves into financial trouble. This would be a non-issue if there was a balance of $0.00 on the card.

I believe that if more people understood how to use credit and debt correctly and responsibly, this country's economic situation would not be so calamitous. Too many consumers are living way beyond their means and everyone is suffering because of it.

I have managed to go my entire life without being more than $200 in debt at any given time. I have several CCs with no balance. It can be done.

well advocate,let the devil himself say that your attitude is not welcome here.good for you that you stay out of debt,but others are not so fortunate.either by an unforseen circumstance or personal matter.it's just i won't let you come on here all sanctimonious and preach.i won't have it.got it?

Got it.

My apologies. I did not mean to offend. I actually do want to help and I feel sometimes the harsh truth is the best way. I just think people need to a hard look at their previous financial habits to not make the same mistakes going forward.

I will refrain from commenting on past mistakes and only try to help with current solutions to problems and make constructive suggestions to avoid future pitfalls.

So, Advocate, you say you've never been more than $200 in debt at any given time? So you can honestly say you have never had a house payment or a car payment? Ever? Or had to pay anything for utilities, groceries, gas for a car. Or even had to pay rent for an apartment?

Think what would happen if you had any of these expenses you were responsible for, in addition to credit card debt, and suddenly lost your job. Then imagine what it would be like if you couldn't find a job and were unemployed for months, maybe even years. Then think what that would be like and throw in the fact you might have lost your job for medical reason and the medical bills were piling up.

So before trying to post a "one size fits all" opinion that everyone is in debt because they are "irresponsible", think of all the other reasons that someone could be behind on their bills. Because irresponsibility is definitely not the only one. Sometimes, circumstances really can be out of someone's control.

And believe me, the credit card companies always have the upper hand in their contracts; they can modify them on a whim and 99.9% of the time it's always in their favor.

Quote:

credit card companies can up the interest rate at any time and also can require you to pay balance in full at any time from my understanding...citi same week asking for more money sent massive letters out telling creditors they were upping the interest rate on card holders ....no annual agreement letter needed I think the fine print in all c/c agreements alludes to this fact;;;;;;;;;;;;;;;banking c/c company who was biggest Bush contributor added to the problem when he instituted changes in favor of the c/c companies and gave them more power to do exactly what they are doing now they should not get another penny of taxpayer bailout they should be left to fail just like they did to leybros!!!!!!!!!!!!!!!!!!!!!!!

And just like many, many consumers have to do too, when they can't get a government bailout to pay of their debts. They're left to fail.

There was a bill, and I'm pretty sure it has been killed already, that was basically a "credit card holder's bill of rights" that put limits on the crazy stunts credit card companies try and pull on consumers. One of the specific items addressed, I'm pretty sure, was to prevent credit card companies upping the interest rates for whatever lame reason they felt appropriate.

Like I said, though, I'm pretty sure it's a dead bill at this point.

Credit card companies notify consumers every month of changes to the cardholder agreements. They are those slick pieces of paper most people throw in the garbage without reading.

Quote:

Personally I think it is unfair and basically theft, that a cc company will wait until you have used your card, then change the interest rate while you have a balance. I wish someone would pass a bill that restrict this activity (that smells so much like fraud). I understand that the CC has a right to up the rate, but it feels like a scam when a company offers you credit at one interest rate, then jacks it way up when you use that credit. I think the 'Devils Advocate' answer SHOULD be to allow them to jack the rate if they want, but that it does not apply to already used credit, but on future credit (once the balance is paid down). That way the consumer gets the credit at the interest rate they signed up and were approved for, and once the balance is paid can cancel the card if they don't like the new interest rate,.

Its like if you lent someone some money and then later down the line told them they have to pay back more then they agreed to.

Besides, I don't like all the answers of 'well if they don't like it they shouldn't get the card'. That is a lame excuse because these people are getting the credit at an agreed upon amount and personally I don't think the CC has the right to jack a rate for no reason, that they shouldn't be allowed to do this.

I have the same @@@@@ story with citi card. I have two cards from citi one I dont use & on tht card they are lowering down apr every month now to 6.5% & offering me great deals & on the other citi card which I use & have 50% utilisation they sent me notice tht they are raising my apr by 8% for no reason(saying its a business decision). I told them I will close down the card & will not do business with you guys ever again.

Having a different opinion is WELCOME.

Being the popular one isn't all it's cracked up to be anyway. Honestly I agree to a big degree on D.A.'s opinion but I also understand that it is hard to balance debt vs life.

People should be more aware of the contracts they agree too. Consider it a lesson learned and be more careful next time.

I truly sympathize with Amaranth I really do. I hope that something does get worked out. It really sucks what the CC company did.

Yeah, I'd say differing opinions are always welcome; however, differing opinions, while belittling and putting others down, are not welcome.

And sure people can learn a lesson by this; however, how are they supposed to be more careful next time, when the credit card companies can change the rules on a whim?

"Play nice or don't play?" We shoud send out same message to Obama for credit card REFORM!!!!!!!!!!

I read the other day in a major newspaper that If you are months behind in your credit card debt, defaulted, that very soon or even now that the credit card industry through our goverment will forgive up to 40% and you can make interest free payments on the rest.

I am really beginning to believe that it does not pay to do the right thing anymore. I should of bought a house that I knew I could not afford, went into debt with credit cards up to my ass, got married and had 6 kids that I knew I did not want or could not afford so that I can get on the welfare grid, filed bankrupcie before they changed the laws,......... WHAT THE HELL WAS I THINKING, MAYBE IT IS NOT TO LATE!!!!!!!!!!!!!!!!!!!!!!!!!!

Guest.

I think you meant MBNA, not MSNBC.

Don't want anyone getting confused.

LukeSkywalker, I read the same thing. I wonder exactly what someone has to do in order to qualify for that 40% forgiveness, though. I'd be willing to bet it's not as easy as it sounds.

FlordiaRon, I think you have to be in a real 90 days or more default. People who are trying to get out of debt will not have this as for as they are trying to keep up with payments and get out of debt.

By be more careful I mean be more aware. Read the fine print. Read each and every statement from front to back. Read each user agreement.

Wow- you get into a horrible car accident, lose your vehicle, end up in the trauma center, are gone for a couple of months, and look what happens, one of your threads blow up.

Devil's Advocate , you DON'T KNOW ME. I didn't come here crying and sobbing for sympathy. And if you searched any of my other threads, you WILL SEE that I have many times claimed responsibility for my debt. Instead of taking the easy way out and pushing the "bankruptcy button", I am working my butt off to pay back all my debts honestly and in full; as yes, I did rack up those debts on my own. I also used to have about 16 PAY DAY LOANS, and about 10 of them were ILLEGAL, and I still paid back everything PLUS the outrageous interest even though I knew those were invalid and that I was not legally required to pay them back. I work 7 days a week, 14-16 hours a day. I haven't had any proper sleep in months, I am working so hard. I have sold items that are so precious to me just to pay off my creditors.

My COMPLAINT with HSBC is

1) they raised my apr when not only had I NEVER defaulted with them, but as I repeat myself TIME AND TIME AGAIN, I have NEVER defaulted with any of my other creditors, either. So yes, they may have the right to to raise my APR whenever they want, I am saying they have no JUSTIFIABLE right.

and 2), which is my biggest complaint, is that I stopped using the card in March of 2007, because that was when I decided to start taking control of my debt and find a second and third job to start paying it all back. Because of the APR raise, I requested the account be cancelled and that I would pay off the entire balance at it's original rate. THEY SAID NO. Items I bought 2 years ago at 12.9% APR they said I would be required to pay 26.9% on even with the account being cancelled. I told them I charged those items because I knew I could afford 12.9%. If I had known I would then later be told I would have to pay 26.9% on those items, I would have NEVER made those charges or let the balance go so high because I KNOW FOR SURE that I can't afford that. So if you ask me, that's plain crooked. Agreeing to extend me credit for something at one percentage rate, and then telling me later that they decided that they wanted me to pay at an even higher one, now, seems pretty sheisty.

Wow- no more than $200 in debt your entire life? You must be pretty blessed. Just because this is a "debt" forum, doesn't mean everyone here is a lazy, good-for-nothing that knew the rules of the game, decided to live beyond their means, and now that they are completely sunk, are crying foul when creditors rightfully request that all money lent be repaid per agreement. You are painting very broad strokes by assuming that that is everyone's story here. Not everyone brings their personal baggage on here to justify their current debt situation, as some, like you, like to claim that that is just a "plea for sympathy". Lots of people, through no fault or instigation of their own, have been laid off and lost jobs. People have had dehabilitating accidents that has kept them from being able to work and provide for themselves and family. People find out every day that their child is afflicted with a horrible disease, and they just can't keep up with the expensive treatments on top of all the other bills, or they have to give up paying jobs to be by the sides of their loved ones. Things that were easily affordable and bills that were always paid are all of a sudden impossible to pay in the blink of an eye. What right do you have to come here and just assume that everyone here is an irresponsible user just looking for a way to blame others and to get out of paying their debts and just cut and run?

On my way to one of my 3 jobs a couple of months ago, I was in a horrible accident. I spent time in the trauma center, and my vehicle was destroyed. So not only did I miss a lot of work and lost a lot of my income, but a vehicle was my "tool" and a requirement for my second job. So by losing my car, I lost my second job. Also, ambulance rides, trauma center and er doctors and nurses are a lot of money. Yes, I have insurance. But they only cover up to a certain amount. The rest of the medical bills I am having to pay for out of pocket.

Actually, no time would be better than now for me to file bankruptcy, considering the circumstances. But I soldier on. I keep working 7 days a week, even though I still have incredible pain from injuries such as my crushed sternum, and I work 12-14 hours every one of those days. I keep paying every bill. I keep chipping away at that giant debt with every dollar I labor to make. YOU DON'T KNOW ME.

Accidents are accidents. They cause setbacks because they are unexpected. I will just have to deal with that. But I am going to feel frustrated and taken advantage of when I am working so hard to to pay back all my debts and a greedy credit card company pulls a stunt like this. And I believe I am in my right to have that frustation and seek advice, without being belittled as simply crying for sympathy.

To those who jumped into the thread during my absence, I appreciate all the information, advice, and also the support.

I am so sorry to hear about your accident. I hope you are beginning to recover and things start looking up for youIt is good that you are back-take care of yourself..karen :D

you don't have to explain or justify anything to anyone. Hope you keep improving and feeling better!

"By be more careful I mean be more aware. Read the fine print. Read each and every statement from front to back. Read each user agreement."
What about if you owe $5,000 and you get new user agreement where they can call in full payment at any time? FYI sorry---you know this happens all the time please stop defending your industry here!!!!
It doesn't matter what it originally states because they CAN and NOW ARE changing all fine print..all they have to do is change it BECAUSE THEY CAN ANYTIME THEY WANT TO and you are saying be more aware? I would say be more aware of how to challenge the debt after you don't pay than aware of the lies and power they currently have to change it up whenever they feel like it
_________________

FYI is not defending whatever industry you think she's defending.the credit card industry does stink out loud for some of the things they pull,but if you do read the fine print.some of these cards have clauses that terms can change without notice.so please,while the credit cards are in my opinion a racket.until someone in government changes the rules that is the way it is.that is why i don't have credit cards and choose not to.

I don't agree with predatory lending. I don't agree with raising interest rates on accounts that are in good standing. I would get upset if it had happened to me as well. But getting upset isn't going to change the outcome. I checked the agreement on one of the two credit cards I have. It clearly states that they can change the interest rate at their discression. I hope by Feb that I will be able to pay the balance off of the only one that still has a balance and either never use them or use them to the extent that they can be paid off within 30 days.

I think banks play a big part in why our economy is failing. But while I think that I also believe that people are to blame just as much. I hope that people learn from the mistakes that are being made on the banks ends as well as their own.

While I don't agree with credit card companies raising rates it is there right to do so. It's a fact not an opinion. It says so on the user agreements that most people discard.

I used to talk to many people who would just tell me they threw thier statements away without reading or even opening them. I believe that once these mistakes are made people will make decisions with more awareness.

I have a business credit card with Advanta and took their low intro rate of 7.99% which soon jumped to 16.99%. (had this 2 years now).... to my shock (I have great credit, great fico, etc.)
I got a notice on Christmas Eve day that my apr with them went from 16.99% to are you ready?......38%!!!!!! Oh yeah, I have an opt out if I pay the whole balance of $5700 off in just 15 days..
This is extortion to the max and will be the ruin of small businesses...We need a class action suite against these companies.

The govt. just passed cc laws, but...they don't take effect for at least a year. DUH! They should be in effect...NOW!

Hiya Buckeye! How's it going?!!

So far, so good.

Check your messages...please. ;)

Buckeye,
That's probably why the credit cards companies are hustling now to get as much as they can fraudulently before the Government's new laws take affect. These predators know what they are doing and every loop-hole they can use to get around the law. Meanwhile, they are destroying lives.