Credit Card Companies Are on the Warpath - BEWARE!

21 February, 2009

Credit card holders across the nation are receiving documents from their credit card companies which are called Change In Terms Notices. Do not make the mistake of just blowing this off and tossing it into the trash. Doing so could easily devastate you financially.

What many of these notices include are huge interest rate hikes on current and future balances on credit cards. I've talked to people who have seen their interest rates hiked to 30 percent for no apparent reason. The only way to not pay these rates is to close your account, that is the only option. Others are receiving notices that their minimum payment is being raised as high as 5 percent of the balance of their card, again for no apparent mistep by the credit card holder. There is no negotiation on the card holder's part whatsoever. It is either take it or close the account.

Congress passed the Credit Card Holder's Bill of Rights, but instead of this law which prohibits the shenanigans being played out all over the country as I write this taking effect immediately, they allowed the credit card companies until the year 2010 to have their way with the American people.

Much, if not all of what is happening to credit card holders right now will be illegal once that law takes effect.

This is another outrageous example of the government and corporations conspiring against the American people.

Do you believe Congress had your best interests at heart when they allowed this disgusting window of opportunity to be left open for the credit card companies to do what they are doing?

Contact your Senators and Representatives today by clicking here and let them know that their attempt to appease the credit card companies while making it appear they were actually working for your best interests is a farce that is going to further erode the middle class in this country. Let them know you can see through this charade.

UPDATE BY THE AUTHOR (02/22/2009)

When I wrote this article about the Notice of Change in Terms for credit card holders, I was in possession of two of these notices, both from Chase Manhattan Bank for my own credit card accounts. My notices were basically either allow us to raise your interest rates to exhorbinant amounts or call or write to us to tell us you wish to opt out and your account will be closed, you will be allowed to pay off your cards under the old terms and conditions.

I made a phone call and told the operator at Chase that I wanted to opt out of both of my cards, that I didn't accept the upcoming change in terms they proposed, which was my right to do so and initiated by them. I had a funny feeling and decided to call back today to verify that, indeed, everything was in order. Sure enough, the recorded message said that my accounts were both closed. Still, I didn't feel right and talked to an operator. He told me that the person who had closed my accounts had "done it the wrong way and didn't use the opt out clause." Thus my entire balances on both of my credit cards would have been due and payable on the next statement.

Needless to say, my head almost blew off when I heard this news. What if I hadn't had a gut feeling and had not called them back?

The gentleman on the phone assured me that "the situation would have been dealt with when my next statement came out."

I don't believe that I would have ever been able to get out of this problem had I not called back within a couple of days.

Supposedly all is well with the opt out, now, but I will call again in a couple of days and see if this "error" has been fixed or not. I also wrote letters informing Chase of what had happened and to make sure this error did not stand.

We will see.

Make sure you double check that your instructions have been followed when using this opt out clause, otherwise, you could be in a heap of trouble when your next statement comes.

Was this done on purpose? Or are Chase's operators that poorly trained? Your guess is as good as mine, but here again, the error would have gone in their favor and would have devastated me and my family financially.