Tuesday, March 17, 2009

Today's Fly Or Die Commerce Report: Beware: Banks Are Raising Credit Card Rates- Even For On Time Customers

Credit card holders be on alert! Banks like: Citigroup, JP Morgan Chase, Bank of America, and Capital One have been raising the interest rates on their credit cards- even for customers who consistently pay on time. These financial companies have reportedly been abusing the fine print on their agreements.

You can combat the rate hikes if you notify the company that you don't agree to the increase, and close your account. However, there is a trick to this strategy. The New York Daily News quotes a financial advisor, who says: "Banks are required to notify you as little as 15 days in advance that a rate hike is coming. The warning could be tucked in your monthly bill- or come in an envelope you mistake for junk mail."

The sneak attack interest rate hikes are grossly unfair to customers. The New York Daily News quotes a member of The New York Public Interest Research Group as poignantly saying: "The same companies taking federal bailout money with one hand are crunching cardholders with the other- and cardholders are the taxpayers who are bailing them out. It should also be noted that some of the companies are doing this while granting their executives hundreds of millions of dollars in bonuses.

[SIDEBAR: Where is the legislation to stop this??? Talk to your Senator, and local politicians about creating legislation to stop this practice.]

No comments: