Headline FeedsCRM Buyer Talkback
|
|
Re: Credit Card Firms Wail, Gnash Teeth Over New Consumer-Friendly Rules
Posted by: Erika Morphy 2008-12-22 02:36:18
See Full Story
The Federal Reserve Bank has issued new rules that will take effect in 2010, radically changing the way credit card companies treat their customers. Essentially, they are strong protections that regulate interest rates and billing methodologies. For instance, card companies will be prohibited from charging interest on balances that were paid off in the previous cycle. The rules also forbid card companies from raising interest rates on pre-existing balances.
In my experience with Advanta Bank Corp for small business, simply calling the customer service department and mentioning the word 'default' is enough for them to automatically close your account.
I contacted Advanta in October 2008 because my rates were raised from 13.9% (purchases) and 6.99% (balance xfer) to 38%. They pulled the ol' small print 15 day raise your rate notice to opt out routine. I immediately called them and during the course of the conversation with 'Soheb in India' I said the word default. My account was immediately closed by Advanta.
After getting the Better Business Bureau involved, Advanta generously agreed to let me opt out @ 18.99%. The balance xfer is still at this outrageous interest rate.
I'm still battling them on the balance xfer rate.
I also had the small print 'opt out' from Citibank. Thank God I opted out, but the account will be closed upon the expiration date of the card. I don't care...
Why is the Fed giving the credit card companies an additional year to 'rape' the consumer?
I've never had a late or missed payment on any account, nor defaulted in any way except for saying the word 'default' to a customer service rep in a far away land.....
I do not recall ever seeing a credit card company policy which outlawed any words or giving up my right to freedom of speech when I signed up for the account....
This makes me go HMMMMMMM?????
I contacted Advanta in October 2008 because my rates were raised from 13.9% (purchases) and 6.99% (balance xfer) to 38%. They pulled the ol' small print 15 day raise your rate notice to opt out routine. I immediately called them and during the course of the conversation with 'Soheb in India' I said the word default. My account was immediately closed by Advanta.
After getting the Better Business Bureau involved, Advanta generously agreed to let me opt out @ 18.99%. The balance xfer is still at this outrageous interest rate.
I'm still battling them on the balance xfer rate.
I also had the small print 'opt out' from Citibank. Thank God I opted out, but the account will be closed upon the expiration date of the card. I don't care...
Why is the Fed giving the credit card companies an additional year to 'rape' the consumer?
I've never had a late or missed payment on any account, nor defaulted in any way except for saying the word 'default' to a customer service rep in a far away land.....
I do not recall ever seeing a credit card company policy which outlawed any words or giving up my right to freedom of speech when I signed up for the account....
This makes me go HMMMMMMM?????
