Quote:
Originally Posted by julee_m
I am pissed, in part, because they solicited these balance transfers at a certain rate and with defined terms - I didn't solicit them. I can tell that they are about to close the cards and demand immediate payment of the entire balance. I paid a balance transfer fee to them in order to borrow at defined terms and they are changing their rules.
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Unstandably. But you should know the credit card companies are pulling moves like this in part because of the change in credit card law (CARD Act) taking effect by February 2010. Some companies will be trying to get higher rates and terms locked in before the law goes into effect and they have more difficulty in changing terms and squeezing money out of consumers.
A couple big things the CARD Act changes:
- No more universal default and arbitrary interest rate increases. Also no interest rate increases in the first year of a contract
- 45 days advance notice of an increase in interest rate or other change to terms (I think currently it's 15)
- Increases in interest rate do not affect the existing balance, only future transactions
- Statements must be sent 21 days in advance of the due date (instead of the current 14 days I think)
- Payments above the minimum will go towards the highest interest rate balance, rather than the lowest.
- No more charging fees for payment (e.g. extra charge for payment by phone rather than by mail)