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View Full Version : Read Those Credit Card Letters!!!



whitedust
10-27-2009, 08:09 PM
Seems that the CC companies are jumping out in front of USA Gov. CC controls due Q1 2010. I received 2 letters from 2 CC companies that will remain nameless. They are both increasing interest rates to 30% on any all balances. Although nameless we bailed both of these companies out with TARP money.....now this!! I retired my membership on both of those CCs today because I don't use them & I don't need them. This is a heads up to all of you so you can avoid this rip off.

ezra
10-28-2009, 12:05 AM
30% what the I think you can name names.

skidoolis
10-28-2009, 04:25 AM
that make me fell better we just took out a loan at 4% out of my 401k money and paid all those nasty c word things off.(cut them up cash only)two payments per month for few a years and debt free, plus upgrating heating system in the house .30% ouch

yamahauler
10-28-2009, 09:18 AM
whitedust....yup, got the same letters from HSBC. I am getting very fed up with these and am going to start checking out some local credit unions for credit cards. Just got an auto loan from them and they were absolutely great! One thing the bailout has opened my eyes up too is to support the smaller successful banks/credit unions.

whitedust
10-28-2009, 09:21 AM
The 30% increase has also been featured on national TV news but I think most people will be coldcocked when they receive their cc bill. This is outrageous more like a shark loan!! CC companies don't break your legs just your hearts. Everyone should drop membership in these cards ASAP. This will kill the recovery for sure & send Xmas retail in the dumper. Call your CC company ASAP & ask interest questions so you can adjust your spending with that card.

whitedust
10-28-2009, 09:27 AM
yamahuler: I was thinking the the same thing smaller successful banks & credit unions will offer best protection for customers. I have a successful credit union in town that I will be contacting to learn CU ropes but don't know about Fed insurance on savings.

yamahauler
10-28-2009, 09:44 AM
White....Luckily I don't have revolving credit so credit cards do actually lose money from my wife and I. We use them for the convenience and rewards (they are shrinking fast). I was thinking about moving my accounts from the big bank, only thing is if you traveler you have to make sure you have a credit card, or lots of cash (not good idea), or a bank that won't charge you at the ATM but that is very rare. I guess it goes back to the convenience of the big banks being nation wide. But I am almost at my ends with the big banks and ready to make a switch.

whitedust
10-28-2009, 11:09 AM
yamahauler: I use my ccs in the same way you do but my kids charge anything & everything on ccs. They were not raised that way but live that way now. Unless Obama steps in & freezes cc interest rates ASAP the retail recovery will lock up tight. 30 cents on the dollar is NUTS & I think all cc companies will follow suit same as airlines did with charging for baggage. Industry also uses ccs so the economic backlash runs deep. This is legal unless Obama steps in quickly with a freeze. This is unreal for bailed out banks! I'm PISSED!!

dcsnomo
10-28-2009, 11:11 AM
yamahauler- no, they don't lose money an you. As a merchant I have to pay fees to them on your purchase.

ubee
10-28-2009, 11:41 AM
a few good people have to pay for alot of the deadbeat ones!! sucks! A banker looks upon you with interest!

sabercat
10-28-2009, 12:29 PM
A little off topic, but has anybody received a homeowners insurance renewal? I have had no claims and it went up $300 a year! OUCH! I am getting new quotes and they are still $200 higher than last year..what the bleep!

Auto insurance has gone up also!

I'm a licensed electrician in WI but now I have to register that state given license with the state for $100! What the heck!?

yamahauler
10-28-2009, 12:39 PM
Yes, those rates went up this year for me as well. Not one claim for anything on my home or car in 10 years and they both went up again and again. This year I had it and got some quotes and wouldn't you know it, I am going to save $1100.00 a year by switching. I am receiving more coverage on all of my cars and house. The policies are the same, I read them front to back. Talked with my former agent and he said it was a no brainer and I should switch. I thought that was crazy hearing that from my former agent, but glad he was honest.

But low n behold, we switch and 1.5 mths pass and my wife totals car....

samc
10-28-2009, 01:12 PM
Your wifes car accident might have just costed you all that savings........

yamahauler
10-28-2009, 01:26 PM
samc--luckily not. I already checked and it will be about $100.00 more when I renew in 6 mths.


dc: How much do ccc charge you when a consumer uses a card?

anonomoose
10-28-2009, 04:46 PM
Usually the charge to a company is 3% of the bill. Bigger companies cut better deals, but they are all sort of close. So even if they have to give you back 1% of the money, they still make 2% on everything you buy, and if you don't pay the loan off when the bill comes...they really make the bread.

It doesn't matter what company or where you live, when a company sends you a letter that the rate is going up...they are really telling you...that they don't want you anymore. Hunt around and get a better rate, and move on. Small credit unions are great places to keep your business with. They didn't do the big derivative gamble that the big financials did and so the credit unions are not worried about people with marginal credit. The big banks like Citi need to have a certain average credit rating level, or they get grouped into risky banking portfolio, and it costs them...so they send out selective notices to get rid of those who weren't bad credit risks, but suffer from a less than stellar credit rating.

Just shop around and move your card over...there are lots of companies willing to take your credit line on.

Insurance companies seem to go thru revolutions from time to time...no wonder your agent encouraged you to move on...he knew what you would find out. Dumb as it sounds, staying in one place costs you far more than if you move from time to time and keep a weather eye out for a better deal. Eventually the stupid companies will see the error of their ways, and they will then turn the train around and lure back customers with cheaper rates...but they won't offer that to anyone who is still with them...becaus they know people don't like to switch. Remember, if you get several tickets or accidents, you are then stuck with that company or pay thru the nose moving to another one.

This is why I insure with two different companies and never give all my business to one company...they don't seem to scrutinize as hard if you are already with them...if the other company gets upity, then you just put the insurance over to the other company.

skylar
10-28-2009, 06:42 PM
Oh yea, Citi financial can kiss my azz! We got our letter two months ago, raising our rate to 29.99%, or we can close the account. So we closed it. Fricken crooks. Our tax money bails out those those SOB'S, and they pull this crap! And why didn't our elected officials make the soon to be new law effective NOW, instead of next year? RAT BASTAGES all of them.

ubee
10-28-2009, 07:01 PM
wow!

jmk62
10-28-2009, 07:04 PM
They are all thieven, crooked whores...we need to get back to an all cash society....big bro. would hate that!

whitedust
10-28-2009, 09:09 PM
skylar is correct the cc companies are jumping to 30% interest now because they can unless Obama freezes them ASAP. Maybe amoose is right......I don't use those ccs so maybe they wanted me to terminate the cards & raised to 30% to get me off the roles. Either way I'm done with them but I feel sorry for anyone who was carrying a balance & got hit with 30%. Those people GOT SCREWED big time with their own bailout money. They are back stabing RAT BASTAGES SCUM OF THE EARTH all of them!

thunderstruck88
10-28-2009, 09:36 PM
I&#39;d rip up all the credit cards and save up in the bank if you want something pay with cash or a check and tell the credit cards to kiss my grits <font color="ff0000">•</font><font color="ff0000">•</font><font color="ff0000">•</font><font color="ff0000">•</font> Stores still take cash to and you will have NO Bills to pay later on . Just a thought

zaskar
10-28-2009, 10:36 PM
Just got off the phone with 4 different CC companies that I have. 3 of them are raising their rates and tell me there is nothing I can do now but cancel the card. So I paid off 2 of them and canceled.

Such a shame. I have had them all for over 10 years with a flawless record. One of them is also my mortgage holder. Calling around tomorrow about changing that. This is the only way I feel I can get back at them. I am frustrated and furious right now.

I have more to say but the profanity filter will block it all.

whitedust
10-28-2009, 11:05 PM
Good for you zaskar. That is why I posted this as a heads up to JDers so we don&#39;t lose money to the crooks that prey on us hard working people. Better to save that 30% &amp; spend it on sleddinhttp://www.johndee.com/discuss/clipart/happy.gif Try to get the word out to as many people as you can as this is the only way we can fight back.

skidoolis
10-29-2009, 05:37 AM
One reminder by canceling the card you can not negotiate with them after the dust settles i found that out with citi card.I was late by one day they jacked my rate up ticked me off so i canceled card .then after cooling down called them back and guess what... your are scr$%ed you caneled the card what a bunch of crap.cash only one card for emergency and rentals

98panther
10-29-2009, 10:10 AM
Don&#39;t canel them, just pay them off and don&#39;t use them. Won&#39;t cost you anything if you pay it off each month.

If you have one that charges interest from time of purchase do cancel those.

luke_duke
10-29-2009, 10:15 AM
I am like yamahauler, I use them as well. I use my credit card for as much as possible to earn sky miles. It takes me less than 2 years to earn enough for a ticket to europe. The key is to pay it off at the end of the month. I learned a cheap lesson how easy it was to get behind after college. I was lucky to be helped out by parents. I will NEVER be in debt again to a cc company again

lawnman
10-29-2009, 11:49 AM
amen to luke duke, pay them off each month!

If you don&#39;t have the money to spend, don&#39;t do it!

whitedust
10-29-2009, 12:14 PM
The wild card is the new control laws due Feb 2010. CC companies may have to reduce interest rates &amp; are just ripping you off now because they can. I don&#39;t know enough about the new laws to know what will happen in Feb but for now they are maxing profits until it is illegal to do so.

sunchyme
10-29-2009, 12:14 PM
pay them off at the end of the month and you have
a non issue. also, in the long run you are hurting your credit score by closing the account.

scoop
10-29-2009, 12:37 PM
Paying cards off may not be the answer with a couple of the banks. Two banks are &#34;testing&#34; fees. One may start charging an annual fee anywhere from $29 to $99 for those who pay off their card every month or do not carry a balance. The other may start charging an annual fee if you don&#39;t charge $2,400 per year on the card. I think the article was in USAToday. The banks will get you no matter what you do. They want their money.

marty__kms
10-29-2009, 12:50 PM
Cash economy is the only way to go, another advantage to blowing off “Corporate America” in 2005 and moving up north. My personal favorite is the guy who wants to charge his $10,000.00 sled so he can &#34;get the miles&#34;, I tell them upfront that will cost them the 3% the cc company charges me and if they chose not to do business because of that, o&#39;well &#40;don&#39;t thake offense Luke&#41;. Bank are dipping on both ends feel sorry for the fake rich with massive debt but it kind of does serve them right.

samc
10-29-2009, 12:51 PM
These banks are nothing more then crooks.

ubee
10-29-2009, 01:11 PM
One thing good is I,am not getting those 6-7 gloss applications a week !! They were to smoothe to wipe your arse with anyway and to small for the cat box! Local credit unions are making a big comeback and money mostly stays local! check them out!

yamahauler
10-29-2009, 01:28 PM
If you pay it off and don&#39;t use it, they will cancel the card anyway. My wife and I each had one like that this year. Didn&#39;t hurt the credit score one bit.

mjgriffi
10-29-2009, 04:31 PM
US BANK raised my rate from 12.99% to 18.77% just because they wanted to. I asked what my options are and they said if I opt out of those terms&#40;in essence cancel the account&#41; the rate drops to 14.99% <font color="ff0000">•</font><font color="ff0000">•</font><font color="ff0000">•</font> I cancelled and I will cancel Bof A and Cap One also if I see they raised them.

TTT

skylar
10-29-2009, 08:20 PM
Yes, they are a bunch of crooks. How about all the people who are laid off, not too many people can survive on just their unemployment checks. They start using credit cards, to buy gas, to buy groceries, to pay another bill, maybe make a mortgage payment. The next thing you know, they have 3-4000 on their card. Now they can&#39;t pay it off at the end of the month. Now they get hit with an interest rate of 30 percent. <font color="ff0000">•</font><font color="ff0000">•</font><font color="ff0000">•</font>? These banks are out to make money for themselves, and that is all they care about. Screw the country, which they did. It makes me sick.

zrjes
10-29-2009, 09:36 PM
Like others have stated, if you decide to pay off the card that is fine, but if you have had the card for quite a long time you should leave it open. Paying off and then canceling multiple cards will definitely lower your credit score. Its a funny thing!

cuzzinolaf
10-29-2009, 10:35 PM
Yea, pay them off or transfer to a 0% balance card. Crooks but you also don&#39;t want to cancel them and hurt your credit score. It means a lot now and I can see it meaning even more in the future.

cuzzinolaf
10-30-2009, 02:23 PM
Just checked with my credit union and I have no fear of them raising my rates. I&#39;m thinking a credit union card might be the safe way to go.

whitedust
11-02-2009, 08:05 AM
Here is what they can do:
http://finance.yahoo.com/banking-budgeting/article/108013/5-evil-things-credit-c ard-companies-can-still-do?mod=bb-creditcards (http://finance.yahoo.com/banking-budgeting/article/108013/5-evil-things-credit-card-companies-can-still-do?mod=bb-creditcards)

dcsnomo
11-02-2009, 10:02 AM
Beware of balance transfer fees on 0% cards

anonomoose
11-03-2009, 07:27 AM
Many states have limits on what rate can be charged in that specific state. Might want to check to see what the rate is in your state.

If you find they are charging more than they should, you can tell the company to take a leap and go to court where they will be forced to take no interest at all.

For everyone else, a credit card was never designed to carry a balance over long term. It was there to ease the purchase of something, or to keep track of expenses over the month and pay one bill.

So use the card wisely....if you can&#39;t pay the bill off at the end of the month...then you can&#39;t afford the purchase and just don&#39;t do it.

Some people like me, have money coming in chunks. I can use the card, and pay it off when the money comes in. I keep track of all business expenses by using one card for that and one for personal use...both get paid off at the end of the month.

Sky miles, money back...and a bunch more reasons that a credit card can be a friend at times...not to mention the occasional disaster where the tranny breaks and not enough cash to cover the fix. But this all requires DISCIPLINE, which ONLY YOU can control. Take the card out of your wallet, and keep it at home. Before you buy anything, write it down, on a sheet of paper, put it on the table, and discuss OPTIONS for buying cheaper, less of something...., used, whatever, and DON&#39;T BUY it for one week. Then if, after a week, you still think the purchase is the right one...get the card and do it.

Be surprised how many times you think that what you are doing is right until you think about it over time, and realize there is a better, cheaper way, or you just decide you don&#39;t need it that badly anyway.

Works like a charm.

ezra
11-03-2009, 08:50 AM
every one blaming the card corps yeah the interest is crazy. but they are raising now because of government involvement once again.and no one forced you to charge that cheeseburger.if they raise any of my cards it wont affect me because I have no balance.I had some debt last year and then The wake up came. I payed all my debt off over the last year but the house.so if they give me a 30% hike on a 0 balance what ever more incentive not to use.I am still getting 0% offers so if you do get nailed try shopping for a 0% and stop going out stop everything and pay it off you will feel allot better not carrying around 1000lbs on your shoulders

yamahauler
11-03-2009, 09:40 AM
right on anono.

wahoo
11-14-2009, 08:14 AM
Guys.. The only way to change things is keep hammering congress. Have your friends and relatives all join in. Here&#39;s a link to e-mail addresses for all of them..Let them know what you think !!!
http://www.conservativeusa.org/mega-cong.htm

eagle1
11-14-2009, 08:38 AM
Better yet lets all go back to paying cash or writing checks and show them who&#39;s really in charge. I know, it&#39;s a pipe dream.
I pay mine off every month but if they start charging me just to use it I&#39;am gone. Right now there still paying me &#40;1% on purchases and 5% on gas&#41;