Credit card trap

Jenn · #1 02/26/07, 04:35 PM

see CF forum for my bad credit card company's new? trick

papaw · #2 02/26/07, 06:56 PM

I had a credit card through the company that I worked for. They offered money to us at 3% on the card and the payments were deducted from my paycheck. At that interest rate I put all my other credit card debt on that one card .... it was a great deal. A drawback was that if a single payment was late, the rate jumped to 36% on ALL of the remaining balance. I didn't worry about it as the card was through the company and the payments were taken out of my check before I got it.

Story is .... my check from the company was late .... the same company that the card was through. SO .... I now had a HUGE balance on the card at 36% interest for the remainder ....

It just don't seem that this should be legal, but it is. The company "arranged" for our checks to be late so they could jump the interest rate to 36%!

I took money out of my savings to pay it off and now, I have no more credit debts.

legacy · #3 02/26/07, 11:52 PM

Something similar happened to me and they simply reversed everything (late charge and the delinquent record) and were very understanding in the process.

BTW. Do tell the credit card company as it would be to everyone's advantage to know which one(s) are the meanest.

caroline00 · #4 02/27/07, 10:53 AM

Chase recently sent us a change in terms letter. I almost didnt read it thinking it was a privacy notice or something...

They were changing our interest from 7.9% to 28% just because???.... we havent been late for any payments of any kind for at least 20 years. Hidden in the letter was the fact that we could send a letter refusing the change in terms and still keep our old interest rate and continue using the card...

we sent them the letter and paid off that card... closed the account...

so be sure you read every word of every notice that comes in your mail.

papaw · #5 02/27/07, 08:05 PM

Yep, We, several employees talked it over with the HR department and were told that's just business. I still believe it was all a set up. I was able to pay it off, but several others are still paying the loan shark interest rate.

Should be illegal, but no telling how many politicians were in on the scam.

papaw · #6 02/27/07, 08:08 PM

The "new" banking regulations are designed to screw honest working people and allow the banks to get even richer....sooner or later Americans will begin to see just what the last 6 years have cost us.