Credit Card Law Loopholes - Switching from a Fixed to Variable Rate?

The latest round of credit card changes are coming in the form of switching fixed rate cards to variable rates. And even though credit card legislation was recently signed into law, we'll be waiting until February before we see the last of these types of changes from our credit card issuers. That's another 7 months!

If you've recently had your fixed rate changed to a variable rate on one of your credit cards, share your story here in the forums! Or, if you'd like to share your story with a reporter, email us.

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Last night I was paying bills and noticed that my Capitol One card interest rate had jumped to 17.9% variable from 12.9%. I called Cap One today to see what the story was. They told me notices have been sent since February (I do most of my banking online and didn't remember the notices). I asked what could be done, and the rep told me that unfortunately they could not adjust the interest rate. I told him that was fine, but I would find a new credit card and then close this account. That got his attention, and I was transferred to a "senior account specialist". Bottom line is that I got the rate reduced to 12.9% for 6 months, after which time it may go back up subject to account review. He did try and talk me into transferring the balance on another card to the Cap One card at 1.9% for 6 months, but I said thanks but no thanks. My goal is now to get a low interest card, transfer the balance, and say adios to Cap One. I use this card mostly for business travel, and I often carry a large balance (~$3K) because it takes some time to get reimbursed.

It is interesting that the Senior Acct Specialist asked me if I knew why the rate had gone up. I told him that I'm sure one reason was the economy, but the big reason was likely the new credit law coming into effect in 2010. He went into a song and dance about the credit bill, business decisions, blah blah blah.

It goes to show that it doesn't hurt to ask.testtest

It's true, it never hurts to ask and fortunately, you must have been a great customer for Cap One to make the exception. I've heard from many consumers that have tried and get nowhere. Typically your bargaining power is only as good as your account history with the issuer - in this case, yours had to been superb.

It's great to finally hear that someone has actually been successful in negotiating their rate hike with their issuer... it means there's hope out there for others. Thanks for sharing your story, chipster!

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