Wow, make sure you read the inserts that come in with your credit acco

[MorelCabin]

We have one of those 50 month no payment to interest loans...not due for a long time BUT today I got a little "Notice of Account Change" in with it. A contract is really not a contract anymore is it?
They are upping the interest on any loans not paid in full by May 1st. So although my loan is still interest free for the next long time, when it does come due, the interest is going to be higher than the initial agreed apon interest. NOT that it matters in my case because they get paid off before due dates, BUT just awed how they can simply change things and if we were in a different postition it could potentially hurt us...these contracts are really one sided, be careful. I feel cheated, and will not deal with them again

Kind of makes me wonder if the banks can do this with mortgages...pay up now or your interest is going to be...xxx%....scary

 

[On Our own]

In a word? Yes.

Most mortgages have a "call clause" which allows them to call your loan under certain circumstances.

Currently many banks actually meet the criteria under which they could do this but they will not for fear of casing wide spread panic. The clause exists in case the bank feels you have committed some sort of fraud and/or if they are closing. The thinking there is that you would refinance the loan with another bank. Most banks don't do this they simply sell your debt. But the clause remains in the majority of mortgage contracts.

Go back and read the contract for your credit account. There probably is language that allows them to do this, but it never hurts to call them and complain. Each time I have called a credit card company on their **** they have caved. Tell them you'll take your business elsewhere. Most consumers can still get low leverage credit.

 

[Want2BFarmer]

I have seen this with our business credit cards. They drop your credit limit and then charge you for going over their new limit. Basically all of these banks/credit card company's are out to get u. Learn to live without them and you will be much happier....

 

[enjoy the ride]

At least my credit card company had the decency to send a special, seperate notice to it's customers saying that the interest rate it charges on balances past the grace period were going up in three months. No sneaking it by anyone.
People are so ridiculous- used to make me angry that the most irresponsible people were given credit cards which they didn't pay off so the rest of us bore the cost- now they are so busy being extra conservative that even very responsible people are expected to pony up more.

 

[unclejoe]

I am Soooo glad I cut up my credit cards 2 years ago.

to the credit card companies

 

[MorelCabin]

Well, I cut up all my credit cards ten years ago, and we did great...then two years ago we decided on another because of Dh's work and travel...but it seems we spend ahead of the paycheck every week now and are on that crazy cycle...grrr. I rarely pay the interest on it thoiugh because I pay it off monthly but I hate the idea that I owe! They are so hard to control when you have them! I have to figure out a way top harness our budget better:>) and not be tempted to buy anything between paydays! And DH either! haha!
The account in question isn't a credit card, it's a finance company furniture account. I have always bought my furniture that way, I just don't like the idea that they just put this peice of paper in with my bill (that I usually don't open because it's not due until 2011...) Yes, they should have sent a seperate mailing....

 

[DrakeMaiden]

After reading the litterature that came with my credit card account, I realized it was basically saying that the bank could do anything they wanted and I would be held liable.

I quit using my credit card at the end of last year. Now they are sending me "bills" that show a credit to my account for under $5. It is really annoying to get these statements, when there is nothing due and I am NOT going to use my card in the foreseeable future. I never activated the new card they issued me. What are they thinking?

Credit card companies can de-activate your account if you don't use it for 6 months. I suspect that might happen in my case but I'm willing to take that chance.

 

[On Our own]

I PMd Morel Cabin because I saw that this was not a credit card in the first post. Many people who wish to avoid credit cards get financing from stores.


These are often just as bad if not worse than the credit cards!! Be VERY
careful of the no interest financing offers from stores! The strings attached can be very misleading and VERY punitive!!!


Don't believe it when they say no interest for X number of years! They rack up that interest and often have clauses which allow them to hit you with interest for any months where you did not make a payment even though they don't make it clear that you must make payments!!!

There is NO such thing as FREE money!

 

[love blrw]

I hope that everyone that gets one of those letters calls up their credit card holder and cancels the account. I hope that so many many people do it that they have to start worrying about how they figure out good credit vs. bad credit. Credit scores should not have anything to do with how much you borrow, it should only be about how well you pay it back.
I had a card that I was not using and they made changes to the card (one was that I would have a 30% interest rate if I missed two payments). It was an empty card, balance zero. Had been zero for two years. All they really cared about was that I hadn't been lining their pockets for the past two years.
I canceled on them. The girl on the other end of the phone started saying, but you have 27000 fly miles, I said you take them. I told her anytime someone is charged with a 30% interest rate it is highway robbery. And I won't support them.
Credit firms should not get more interest when the interest is at a all time low, they should get less, just like everyone else.