Credit Card Companies Raising Rates on Consumers

this may not be a popular view, but they ARE a business, and as so many people are declaring bankruptcy, settling for pennies on the dollar, and just plain not paying anything after racking up huge debts, that the companies are only doing what they need to in order to stay solvent. Are their fees and rates high and unreasonable in many cases? YES! But if more people paid what they were supposed to, they wouldn't be in that position in the first place.

Yes i have experienced this. I recieved a notice from CapitolOne that in the next month my rate will go from 17.9% up to 24.7% within 30 days. So im trying to hurry up and pay this down a little so the interest doesnt accumulate.

IT IS CALLED "RATE JACKING", the banks have done this to me four times..... I called one and said fine, I will close my other accounts at your bank...... Another said they did a "soft pull" on my credit report, and I said I did not authorize that, etc. etc......you have to get a lil firm with them and in my case I am on-time paying. So they should not be doing this, but they feel they can do what is legal even if it is to their customers that pay on time.....I told them I don't care if it is legal it is not ethical and I don't trust you anymore, I will close my checking account etc. ....then I told them this is why people pull money out of banks and put it under their mattress.......They dropped the interest rate back down. I promised to pay them....like I always have.....

This is one of the new laws that will go into effect in a couple of years, whereupon it will no longer be legal for CC companies to raise the interest of customers in good-standing in order to pay for those who have been irresponsible and have stopped paying on their debts. A lot of the companies are rushing to do it now before the law goes into effect. My parents have a score of 815, and they have a card with Chase with a $50,000 limit on it. After being a perfect customer with Chase for more than 15 years, Chase raised their APR too, and they had a current balance of about $27,000 on the card, and the new APR raised their monthly minimum to over a thousand dollars. My mother was furious, and they had to take the pay-off of $27k out of their Savings in order to pay off the account and cancel it. Most people wouldn't be so lucky to have that kind of money available to make a pay-off, and would be stuck with that monthly minimum. Keep in mind, my folks have a score of over 800. So the companies are hitting everyone regardless with these new APRs. Just in the past 2 months, I got notices for 2 more of my accounts that are going to be raised. At this point, I'm gonna cancel everything and just pay cash for everything for the rest of my life -_- I am so disgusted with the whole credit game right now.

it might be that their utiliaztion was over 50% that caused the jump ...

very unfair practices IMO, they are getting 3% vendor fees every time you use their cards, plus any interest and fees you pay. Just consider that .... they already had been paid $810 for that $27,000, plus any interest your parents were paying!

I had 2 cards, a visa and a mc for over 5 years. I paid on time, never late, and never paid the minium, always $100. My rates went from 10.9% to 17.9, I called and did not get anywhere on dropping the rates. I paid the mc the next day and called again, after 3 people, no go, I told them to F**k off and close the account. I also told them to report this to the three credit agency's. Two weeks later I called again, to get the visa down, after three people, no go, I paid that one off and told them to close that account and report it to the credit agency's, and to never contact me again. "But your a very valued customer, I said F**K you again. I called sears to check a payment and they dropped my 12.9% gold card to 10.9%. Capitol one has lost two accounts.

Anyone else want to join together and file a class action suit against Capitol one....

My husband heard last week that many cc are going to try to raise your APR is you shop at discount stores a high percent of the time. They said, they are saying that if a person shops mainly at places like say at "Wal-Mart" then they must be in a "money pickle" and are considered a high risk, OUTRAGEOUS!!

where did he hear that from?

Think he said on a talk radio show.