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ironhiway's avatar

Do you believe your credit card company treats you fairly?

Asked by ironhiway (1367 points ) March 12th, 2008

Sen. Robert Menendez, D-N.J., introduced a credit-card reform proposal.
link
I’ve linked a news article and referenced the Senator who proposed the bill.
Some Credit Card companies raise interest on customers who even though they are on time with all payments there risk factor based on their score has gone up.
What are your thoughts?

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9 Answers

MrKnowItAll's avatar

Our banks have become vile corporations, preying upon the poor, to the benefit of the rich.

kevbo's avatar

I’ve been very happy with USAA. My rate is very reasonable (7.75%), and I don’t get dinged if I skip a payment. The catch is that you have to be military, immediate family or family of an existing member to join.

djbuu's avatar

Fairly? You mean by providing us access to upfront and immediate cash any time you want? And they don’t charge you interest if paid within 28 days? Yeah I think we are treated fairy. I think consumers abuse the system so much that these companies are forced to implement measures to recover their loss. If you don’t want interest, don’t use a credit card.

syz's avatar

I disagree, djbuu. I’ve had multiple CC companies jack my rate and not inform me (except for the very small print on the back of the statement) even though I’ve never been late and have an excellent credit rating. I’ve also gotten exceptionally rude treatment when I call to cancel a card after such treatment.

djbuu's avatar

So you being naive about how your credit cards rate works makes the company bad?this is the kind of entitlement that drives me crazy.

syz's avatar

I don’t consider hiding bad news in tiny print with no explanation as being good business ethics – I don’t think that makes me “naive”. I deal honestly and ethically with my credit purchases and I expect the same in return. Where’s the entitlement in that?

ironhiway's avatar

kevbo thanks for your response, I’ve also been very pleased with my AT&T Card.

And like syz, I too have had my rates adjusted. Anytime your score changes some cards will adjust your rate. Bank of America changed the rate from 9 to 19.99 in one month.

Since your credit score is effected every time someone checks your credit. Like when your renting an apartment or buying a car, even when you apply for a job. The credit company can pretty much change your rate at any time.

Like syz I can cancel my card by paying it off and closing the account. Because of this I usually get my rate returned to what it was. My credit score was effected because I changed my car insurance company and changed jobs. Both involved a credit check.

My concern is those who are just as responsible as me but are not able to close the account and so the company wont lower the rate. Should I be entitled to a better rate just because I don’t need the money.

And should I stand by and allow card companies to trap those who they can into perpetual debt. just because they can

cwilbur's avatar

I don’t think they treat me fairly; I think they treat me according to the terms we agreed to, which is a very different thing.

ayeu's avatar

What does fair mean? They are not lining us up for execution so I can’t complain. Djbuu has a good point about entitlement. I advise you to check things carefully OR be willing to pay for the luxury not to. I’m actually the type that usually chooses the latter unless the stakes are high. Life is to short to worry about nickels and dimes. However, once, when badly in debt one of my lines was sold to a company that made incredibly easy terms to repay. A little too good I thought. One month, a few months later, the amount due jumped up from 12K to 16K for no reason whatsoever! I called them & spoke with someone who agreed with me but would not give me their name. Phone call & Registered letter, they never acknowledged any response from me but blindly sued me. I saved my statements and years later finally beat them in court. In the courtroom were other sued by this same company. They probably figure that the average Joe doesn’t know enough about law to fight them and can’t afford a lawyer. They probably win enough to make it worth their while and meanwhile are protected under the guise of an accounting error. Is this legal? Legality is a matter of what’s fought in courts & they are good at that so I guess that makes it legal. Not very moral though. Again, this was not a credit card company but a company that buys their debt. Nevertheless, it is up to you to look out for yourself, for you are the only one who will be there to take the consequences of your actions. Mommy & Daddy are getting old you know…

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