Posted on
October 19, 2009
at
1:51 pm
if a credit card advertises a low rate for the life of an unsecured personal loan can they change it at a later date? i get letters all the time but they say in the fine print they have the right to change the policy without notice, does that mean they can charge a higher rate on the previous loan for life. does anyone know which card is actually better to carry i see too much fine print in all of them?
Posted on
October 19, 2009
at
11:01 pm
I think they can. That's why you have to make sure that you are able to pay off as much as you can within the 0% rate offer period.
Posted on
October 19, 2009
at
11:08 pm
Wait, isn't there a bill that was passed effective 2010 that would prohibit this?
Posted on
October 19, 2009
at
11:11 pm
You mean the Credit Card Accountability, Responsibility and Disclosure Act? It is going to be effective, the soonest, February 2010. That law would deal with the ff:
Interest rates - If the consumer's payment is 60 days late, the credit card company can increase the rate.
Penalty fees - Unless the consumer has asked for an over-limit fee, the creditors can't charge the consumer for it. Banks may not charge late fees if they were also late in crediting a payment.
Posted on
October 19, 2009
at
11:35 pm
Credit card companies, under that law, must also give the consumers 45 days before they can up the interest rates and the consumer's payments must first be applied to accounts with the highest interest rates.
Posted on
October 20, 2009
at
1:18 am
But until February 2010 the creditors could have their way with the interest rates via their universal default system or them raising the interest rates for failure to pay on time.
Posted on
October 22, 2009
at
4:18 am
A change in the interest rate typically happens if the loan has defaulted on payment. That's part of the agreement that you originally signed with your creditor. So yes, they have the prerogative as to whether or not they'll be informing you of the changes in the interest rate on your account.
Posted on
October 23, 2009
at
1:22 pm
hey so i did default on one payment but without notice they raised the interest rates...now i have no idea how i can pay off my debt because my payment goes towards the interest alone. what can do?
Posted on
November 3, 2009
at
2:44 am
Consolidate your debt, either thru credit card counseling or debt settlement. You'll be helped by these debt consolidation options in paying your debt off with minimal fuss. If you plan to get an unsecured personal loan, that might backfire, as you're getting a loan to pay off another loan, which means more worries to think about, given that you'd also be paying for interest on top of what you're already paying for.
Posted on
November 3, 2009
at
2:45 am
Can't i speak with my creditor and ask them to change the rate on my loan instead?
