Hikes in Your Credit Card Rate? What You Can Do!
If you are like the fiesty Ms. Minch of YouTube fame and feel your credit card rate has been increased unfairly, there are a number of things you can do.
First, get your documentation together, recent payment records, recent bills, any notices received from the credit card company, etc. and create a timeline of events leading up to the rate hike. If you did, in fact, have a late payment that prompted an unreasonable jump (Ms. Minch’s rate went from 12.99 to 30% which is overkill for one late payment in my opinion), note the circumstances surrounding the late payment. For instance, if you’d recently lost your job and were late because you were unexpectedly strapped for cash, you need to document it.
If there was not an ‘event’ that triggered the rate hike, then make note of what ‘reason’ you were give in the written notice you received from the credit card company. Remember, credit card companies will issue cards stating the rate you will receive on the card and it will often be presented as if you will receive that rate indefinitely, but when you read the fine print, they will state they can adjust your rate at any time.
If you are not in a bind financially and have the ability to transfer your balance to another company’s card or to pay off the account and close it, do it right away. If you don’t have the ability to do either, with your documentation in hand, call the company. Note the date, time and ask for the name of who you are speaking with on the phone. Provide the explanation for late payment or ask why rate was adjusted if there was nothing in your payment history to prompt an increase. Ask for an immediate reduction to your rate. If you don’t feel the person you are speaking with is helping you, ask to speak to his/her supervisor or the manager.
Document the conversation especially what you are told regarding your rate if they are going to change it.
Watch your billing carefully! Many people utilize online bill pay and since they are not closely reviewing their statements each month or, instead of receiving a paper statement, they get an online notice of their new balance and payment due, the rate may have been changed and they didn’t know it.
There are many consumer protection agencies and legal aid offices around the country. If you feel you are being treated in an unfair or discriminatory way, contact them and ask for assistance and/or direction.
While the old adage, “he who has the gold, makes the rules”, it is also true that unfair and/or discriminatory business practices need to be addressed and consumers should take action to protect themselves whenever necessary.