My revenge on the credit card companies!

[intheblack]

Between a major home remodel and an idea I had for a small business I racked up a whopping $47,000 in credit card debt over the last three years. I have a great job and earn just over 6 figures so I was able to make the payments but over the last year one by one these credit card companies began jacking up the interest rates on my accounts to the point of being rediculous.

Discover Card - $7,500 balance. Started at 14%, jumped to 21% and then 29%.

Chase Visa - $10,000 balance. Started at 9%, jumped to 17%, then to 22%.

Bank of America - $11,500 balance. Started at 9%, jumped to 19%, was scheduled to jump to 24%.

Citi Mastercard - $1,100 balance. Started at 15%, jumped to 24%.

When I called to inquire why the rate increased the story varied.

One told me there was no reason, they just increased rates across the board. My response was, lower the rate back down or I'll pay the card off in full today and cancel it. They lowered the rate back down.

Another said I paid the bill 2 days past the due date once, and 3 days past the due date a second time hence the 29% rate. I explained that I had to go out of town for a month when my sister passed away, and again 6 months later when my mother passed away. The guy says tough luck buddy. I asked to speak with a supervisor. He gave me the same answer. I said look I have been doing business with you for 10 years. You can lower the rate back down or when my house closes in 6 weeks I'll pay the account in full and cancel the card. He griped and complained and tried to act like he was doing me a favor but he lowered the rate.

A third company said they increased my rate to 24% because they studied my credit report and it appeared that my cards were maxed out and I might have trouble making my payments. Keep in mind that I had no 30 day late payments or bad debts on my credit report, just high balances. I said gee so you think I might be overextended so you raise my rate through the roof? Explain the logic in that to me, wouldn't that make it even more difficult for me to make the payments? He didn't have an answer but did lower the rate back down a bit.

REVENGE DAY!!!

My house finally closed, my bank account is bulging at the seams with cash and I sit down to call each of these credit card companies on the phone and pay the accounts in full and close them. OMG they were crying in their beer begging me to keep the accounts open. They offered me 0% and all manner of other lower rates. One even offered to credit me the rediculous interest they charged over the past 6 months. I forget how many times I got forwarded to other departments and please don't cancel our card specialists.

To each I said listen, there is a price to pay for these predatory lending practices. You target customers that you think won't be able to pay off the account and you crank the interest rate up to rediculous levels. I'm sorry I won't do business with a company that treats their customers that way. No amount of sweet talking today is going to make me forget you have been trying to gouge me with fees and interest rate hikes over the last year.

There was one account I had planned to leave open, Bank of America. I paid the account in full then asked them to reduce the rediculous 19% rate. They came back and said, uh...actually you were scheduled for an rate increase to 24% next month so the best we can do is leave the rate unchanged at 19%. I said let me get this straight, I have over $200,000 on deposit in your bank and you were planning to raise my rate to a whopping 24%? Are you trying to tick me off so I withdraw my money and go to one of your competitors or something? BoA got a case of the mumbles when I told them that. I said never mind the rate reduction, close the account. But but but Mr. Smith? Close the account I said. But but but Mr. Smith if you just give us a month next month we can lower your rate to x. I gave them the same predatory lending speech above and let them know I'm switching all my accounts to HSBC.

So to all these credit card companies who are engaged in this gouging of customers for every last dime they can squeeze out of them I say what goes around comes around. HAHAHA!!!

In case you are wondering, yes I paid off all $47,000 off. I kept a single card which I have had for forever, it has a $1,100 limit which I use for travel and pay off monthly. I have a 2-3 retailer cards at zero balances which I rarely use. Sure my credit score took a little hit from closing the accounts, so what I don't need their stinking credit anyway!

[poundwise]

That was an enjoyable read.

Congratulations!

[simpleyme]

wow when i close an account they just say okay ;-) and close it for me

i have asked for lower interest and they say to me you do not ever carry a balance so it does not matter what your rate is,i agree and said well since it does not matter why don't you lower it?they say no and i quit using the card ,i just spend my own money its just easier LOL

[deca]

Haha, I love it!

[anonymous_saver]

Thanks that was incredibly enjoyable to read.

The only difference I may have done is take the one that offered you the interest you had paid over the 6 months. Then when it was deposited I would cancel the card the next day. I guess I'm just evil.

[PauletteGoddard]

OMG they were crying in their beer begging me to keep the accounts open. They offered me 0% and all manner of other lower rates.

This is the best bit, especially after the abuse they gave you. I love "empowered credit card consumer" stories!

[intheblack]

I have to say I took great satisfaction in telling these credit card creeps what I thought of them as I closed these accounts.

The one that whined the most? Discover Card. The one that was so rude to me only 6 weeks before after raising my rate to 29%. No kidding this Discover Card supervisor was talking down to me big time trying to give me financial counseling advice like I couldn't count to 10 and he wasn't being too friendly about it. I interrupted him and said, look I bet I make 2 times what you make and I don't want or need financial advice from you. OMG I thought the top of his head was going to blow off. He got all upset, well you don't sound very greatful for my lowering the interest rate back down. I said I'm not, it was a dumb move raising it to 29% in the first place. He said well I don't have to lower it. I said then don't and I'll pay the account off in 6 weeks and close it and you will never get another dime, your choice but I don't need your financial counseling advice so save it for somebody else. Man he was ticked off.

Of course they had already lost me as a customer, I had every intention of closing the account no matter what they did. They were the one that offered to rebate my interest for 6 months if I kept the account open. They were flabergasted that I turned down that offer. But but but we are giving you this money back, are you going to turn down free money?

Listen, you thought I could not afford to pay off this account. You thought you had me over a barrell. You thought there would be no consequences to jacking up my rate and treating me so rudely. You were wrong and now you get what's coming to you. You don't have enough money in the bank to keep me as a customer.

It was worth it to me to give them a piece of my mind and follow through on my threat to close the account. There you go Discover Card, chew on that.

Oh I closed all these acounts 2 months ago, today I opted to download my three free credit reports and I paid Equifax for my credit score. All the accounts I closed show zero balances, I'm totally green across the board with no negative dings and my score...drum roll...791 out of 850! Not bad!

[DayByDay]

I am sick of credit cards. I got two. one from HSBC and one from Capital One. Only $300 limit on each one. And they charge me all kind of fees and when I was one day late they charged me $30 bucks... Ughhh... Not worth it.
I think I will pay them both off and get rid of them.

[autoxer]

Originally Posted by intheblack

They were the one that offered to rebate my interest for 6 months if I kept the account open. They were flabergasted that I turned down that offer. But but but we are giving you this money back, are you going to turn down free money?

I'm flabergasted too. $7500 balance at 21% .... Isn't that $131 per month in interest? or $786 for the previous 6 months?!?

I would of said, "sure I'll keep the account open." As I walk over to the shredder & cut their card into little pieces.

[Lindahfx]

That's great to hear. I'm glad that you were able to tell them what you thought. I never seem to get the chance.

[intheblack]

Originally Posted by autoxer

I'm flabergasted too. $7500 balance at 21% .... Isn't that $131 per month in interest? or $786 for the previous 6 months?!?

I would of said, "sure I'll keep the account open." As I walk over to the shredder & cut their card into little pieces.

It wasn't quite that much, they were only going to credit the difference between 14% and 21%. I was quite happy to pay what I did for the opportunity to make them beg and grovel for my business and then turn them down. About time they got a taste of their own medicine!

[Ima saver]

Good for you. That is why i pay them off each month. i don't even know what my interest rate is. But I love when I get a rebate check back for using the card.

[autoxer]

Originally Posted by intheblack

It wasn't quite that much, they were only going to credit the difference between 14% and 21%. I was quite happy to pay what I did for the opportunity to make them beg and grovel for my business and then turn them down. About time they got a taste of their own medicine!

So you turned down somewhere between $525 & $786, to get a rise out of one of their customer service representatives.

I also think the credit card companies do some evil things for a profit, but letting them keep all of that interest isn't my idea of revenge.

[PrincessPerky]

I think for the hassle and for the fun of it with as much spare loot as he seems to have, I prolly would have too.

And I throughly enjoyed reading your post. congrats.

[intheblack]

Originally Posted by autoxer

So you turned down somewhere between $525 & $786, to get a rise out of one of their customer service representatives.

I also think the credit card companies do some evil things for a profit, but letting them keep all of that interest isn't my idea of revenge.

You must have one of those Discover Card calculators. Mine says $262.

[mrvirgo]

Yours was one of the best posts I have ever read! Congratulations on your triumph over the merciless credit card companies.

[simpleyme]

Originally Posted by intheblack

You must have one of those Discover Card calculators. Mine says $262.

HA! ROFLMAO

[autoxer]

Originally Posted by intheblack

You must have one of those Discover Card calculators. Mine says $262.

Is my math wrong?

$7500 balance x 14% APY / 12 months = $87.50 in interest each month. 6 months worth = $525. How much interest were they charging you each month?

If discover card is willing to give me 5% back on all of my gas purchases, I'll take it. Without paying any fees or interest.

[bigsaver]

Enjoyable post. I only use the credit cards for the cashback.