No Creditors Would Reduce My Interest Rates

[want2bfree]

I have been successful in the past at negotiating my rates down with credit card companies. But not so anymore since the economy took a dump. I called FOUR credit card companies today and every single one of them turned me down. Two of them jacked up my rates because I was ONE DAY LATE in making my payment. What ever happened to GRACE PERIODS? Are they a thing of the past?

ONE DAY is all it took for one rate to go from 13.24% to 19.24% and another from 14% to 28.24%!!!!! Never mind that I've always paid every single month on time for years. And they won't consider lowering the rates for six to twelve months! (All of my payments are now on autopay so I don't ever miss again)

I don't get it. Who do we complain to? Who regulates the credit card companies? Our country is in a huge economic slump and the cc co's RAISE RATES??? GEEZ, how is a person supposed to ever get out of debt if they do THAT to us?

I've cut up my cards. I swear I will never use them again - not if they keep up these tactics.

Thanks for letting me vent. It was pretty discouraging and I'm pretty ticked.

[Chilly Jilly]

Most won't reduce rates now because of the new law that takes effect in February that requires them to put payment due dates at midnight (not some arbitrary time) and send bills out with more time before they are due and lower rates after 6 or 12 months if payments are on time. Congress members have heard that some credit cards are upping fees and charges before the new provisions, so there is some talk about moving the February deadline to December 1 - but it will take congressional approval to do so.

[HiFiGuy]

Hi,

I am in the exact same boat. My target account is my target account because the rate skyrocketed after I missed the 5PM deadline for payment. Never mind the fact that the payment still posted on the same calendar day.

While I can really feel your pain, look at this as a blessing in disguise. The anger your feel towards your lenders should motivate you that much more to pay off your debt. DebtGoal says that 75% of getting out of debt is having a plan. You have that. The other 25% for me is sticking it back to the banks- the faster you pay down your debt, the less interest they get.

One day, instead of abusing their customers, banks will be begging to give loans. I'll just sit back and laugh. Remember the old saying- he who laughs last- laughs best.

[want2bfree]

Thanks for your reply. It helps just hearing from someone else who is in the same boat. I don't feel so alone.

I just emailed my Congressman about this as well. I saw a news article today of legislation they are trying to push through to prohibit banks from charging ridiculous amounts for overdraft fees. So I figured I may as well as them to help us with the credit card companies too.

Onward and upward!

[Jr Malet]

I feel your pain. I've been with Wells Fargo for 8 years and have even had a $12,000 personal loan that I paid back in 2 months. This was my first credit card I got in college so I expected the rate to be high at first. I have never missed a payment and usually never kept a balance on it too long. I only owe a measly $300 on this card (out of my $30K current debt) but I was SHOCKED that they wouldn't even lower the rate by one percent. Since it is my oldest card and length of credit histroy plays an important roll in determining your credit score I cannot cancel the card. If I choose not to use the card, some companies will close your account for inactivity. The issue is, if they are not making money off you they could care less about you! This will definitly be the last card I pay off.....and in the end if somone is not going to get paid, I know who I'll choose. I was successful in lowering several other credit cards but it sounded like you had to meet certain requirements in order to qualify for their "hardship programs". The WF Rep said the only time you can lower you rate is if someone calls you and makes you an offer. I said, after 8 years of loyalty, not once have you vountarily called to lower my rate. I then asked who will call me. He said their collections department. So essentially, I have to default and get my rate jacked up in order for them to call and lower it back down to what I'm paying now. Do they think we're stupid or something? Anyway, would be interested to hear what the congressman has to say if you get a response letter.

[ThriftyMan]

Jr Malet

That's a disappointing story about Wells Fargo. I'm sorry to hear they wouldn't lower your rate. But at least you're getting the word out about your experience. If we all start sharing and people understand more about how they treat their customers, maybe they'll change their policies.