Posted on: 01st May, 2007 01:38 pm
cc company closed my account and did not notify me and after that they raised my interest rate.I has missed one payment and thats all, after which I am making more than what is the minimum payment. can the credit card company allowed to increase the rate without letting me know of it, when I called the customer section they said that they had sent a letter which I never received.
The credit card company can do it Bruce. They can increase the interest rate even when you have late payment on some bill of any other company (but are regular with payments on this card) or any negative entry appears on your credit report. This is called as universal default agreement/clause.
Miller
Miller
Yes Bruce, your interest rate must have been increased because of this universal default clause.
This clause is buried in the fine print of cc agreement which says that if you have more than 30 days late, the rate can be increased on your card.
And it need not be a late on your this companies card, it can be a late on payment to anyone.
This clause is buried in the fine print of cc agreement which says that if you have more than 30 days late, the rate can be increased on your card.
And it need not be a late on your this companies card, it can be a late on payment to anyone.
"cc company closed my account and did not notify me and after that they raised my interest rate.I has missed one payment and thats all, after which I am making more than what is the minimum payment. can the credit card company allowed to increase the rate without letting me know of it, when I called the customer section they said that they had sent a letter which I never received."
Hi Bruce,
Welcome to Mortgagefit discussion board.
As you had missed one payment, rate on your credit card was increased and it must be because of the universal default clause credit cards nowadays have. Apart from late payments they can also increase the interest rate if you exceed the credit limit or your check gets bounced. What you can do now is try to transfer the balance on this credit card to a different card with a lower rate.
Do let me know if you have any other questions.
Thanks
Blue
Hi Bruce,
Welcome to Mortgagefit discussion board.
As you had missed one payment, rate on your credit card was increased and it must be because of the universal default clause credit cards nowadays have. Apart from late payments they can also increase the interest rate if you exceed the credit limit or your check gets bounced. What you can do now is try to transfer the balance on this credit card to a different card with a lower rate.
Do let me know if you have any other questions.
Thanks
Blue