Before Our Credit is ruined

Budget101 Discussion List Archives Budget101 Discussion List Before Our Credit is ruined

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      What I am telling you is the LAW in most every state that I know of. When a credit card company raises a persons interest rate the person has 30 days to see the notice that comes in their bill and opt out. Normally, the rate must revert to whatever it was the previous month. But I don’t think there is any way that they would legally have to leave it at zero because that is a temporary introductory rate. I’m sure the fine print in the literature that came with the card protects the company against a personopting out at zero. At that time the card needs to be paid off just like normal. My source is that I have opted out of one of my cards with Chaseand when I called to opt out of some of my other cards they gave me low rates again to keep me from opting out, (citibank and American Express). I was not allowed to opt out of my Sears company card because I didn’t notice in time they raised my rate. They made it clear that Iscrewed up by waiting too longand could no longer opt out. Also, whenCapital One raised my rate just a few points they sent a notice carefully explaining the opt out procedure. Make some calls of your own to your credit card companies. I’m sure that some of the higher up people would have to legally tell you the truth.

      Original Message
      From: Monique
      Sent: Monday, August 04, 2008 10:22 PM
      Subject: Re: : IMPORTANT! About the house foreclosure and credit cards…

      I don’t agree with that. I couldn’t find anything on line that agreed
      with that. The only thing that I could find confirmed what I thought
      I remembered – which is that your interest rate does not go down, but
      remains at the current rate (which you obviously agreed to when you
      signed up for the card). So, the rate can’t go up to the higher rate,
      since you’re opting out, but it won’t go down either. And, yes, your
      balance will be reduced to zero which will kill your credit because it
      means that you’re WAY over your credit limit.

      Suzi, I’d be interested in reading your source.


      On Mon, Aug 4, 2008 at 3:02 PM, Suzi McMullen <> wrote:
      > I totally forgot to say this. If you call all the card companies within 30
      > days from them raising your interest rate, you may opt out. That means you
      > can’t use the cards anymore. But they can not raise your rate beyond their
      > lowest interest rate that isn’t 0%. Whatever their regular rate is, prime +
      > 1 or 2% for most companies. That means your cards would end up around 9%
      > instead of 29%! You won’t be able to use them though and you must pay them
      > on time the whole time you pay them off at that rate. But it’s better than
      > 29% which is the legal high limit for most states.

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Budget101 Discussion List Archives Budget101 Discussion List Before Our Credit is ruined