Feb
I was under the impression that the percentage rate set when our card account was shut could not be increased but now I see they just increased the APR to 19.99%. I’ve not contacted them yet as I hope someone with professional experience may answer my question and advise me of my rights. Thankyou
Answer:
Roughly talking, The cardholder agreement that you agreed to when you first got the card grants them to do anything they want. You have the right to pay them or not pay them. If you select not to pay them, they have the right to sue you and garnish your wages.
I recommend you contact them and tell them that if they don't lower the interest rate, you are going to transfer the balance to another card with a lower rate. That usually works. If they don't budge, then follow through with your threat. Get a card with a low introductory rate on balance transfers, transfer the balance, and try to pay it off before the introductory rete expires.
Answer:
Do you still have a balance? If you were late on a payment they have the ability to change the rate. I would call them and state that the increase rate is making it difficult for you to make payments. Tell them that you’ll agree to an automatic deduction from your checking account if they return the rate to what it was. They like that!
If they do not agree, tell them you will continue mailing your payments. Pay it off asap.
Answer:
If the card is variable rate, it can change at any time.
If the card is fixed rate, then they can’t change it to variable (or to a higher fixed rate) without giving you the option to refuse to accept the change.
Answer:
If the account is truly closed, then why do you give a care about what the APR is? A closed account is one that you no longer have open and can no longer use…..PERIOD. I don't think you understand the meaning of a “closed” account.
Answer:
What do you mean by “closed?” If it's shut, then there is no activity on the account, therefore no interest rate! Or do you mean that it is “active” yet you’ve not been using the card in a while?