A reader recently sent me the following email:
“I received a notice that my AX is raising my interest rate. I called this morning to opt out and cancel my account if needed. They said I could not, even if I cancel my acct. I have to pay the higher rate on the balance? I have had other credit cards in the past inform me of increases and they allowed me to cancel my account. What can I do?”
After some back and forth, I learned her interest rate was 6.24 percent and it will now be above 10 percent. I also questioned her about the timing. If the letter was mailed after August 20, 2009, she would be protected under the Credit CARD Act. She would have the ability to opt out of the rate increase and pay off the balance at the old terms. But since the notice was sent shortly before that date, she has no such protection and is now stuck with the new terms.
If this reader is having a difficult time paying her credit cards, she may be able to get some relief through a credit counseling program. It didn’t sound like she was at that point, but it wouldn’t hurt for her to find out what her options are.
Has anyone else found a way to get AmEx to change its mind on a rate increase? Share your tips here.
Gerri Detweiler – Personal finance author and Credit Advisor for Credit.com, Gerri contributes budgeting, debt recovery and savings information online. She is also the co-author of Reduce Debt, Reduce Stress: Real Life Solutions for Solving Your Credit Crisis.
Gerri Detweiler Credit.com's Personal Finance Expert, Gerri focuses on financial legislation, budgeting, debt recovery and consumer savings information. She is also the co-author of Debt Collection Answers: How to Use Debt Collection Laws to Protect Your Rights, and Reduce Stress: Real-Life Solutions for Solving Your Credit Crisis as well as host of TalkCreditRadio.comTalk Credit Radio. Reach Gerri at creditexperts@credit.com.
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That stinks, i think banks are taking advantage of people right now. So many CC companies are starting to do this. Wait until the economy picks back up and people flee o better lenders!