Credit Card change of terms

[Tia]

Arriving in the mail yesterday was a notice of change of terms for our Chase Mastercard. The main thing I saw was- 'Due to market conditions, new federal laws and regulations their costs are increasing and they are changing the APR to a variable Prime + 19.99%' !!!

Greed pure and simple. We pay our balance off each month when we use our cards, but I just didn't like to read the new deal. We have cut back on using our credit recently, instead trying to pay as we go.

So am now wondering what I want to, do as this was our backup card when a vendor didn't accept Discover... hmmm. If we don't accept the new terms so then close the account doesn't that negatively effect your credit score?

 

[rhonda]

If it is your backup card, used for short-term charges, and it has no annual fee -- why cancel? If you pay off each month you are not affected by the rate change, right?

 

[thheath]

Citibank tried the same thing with me a few months back and I called and told them if they changed my interest rate I'd cancel. They saw things my way and the card has stayed at 5.75% rather than the proposed 19%+.

Always call and protest any unfair practices, don't be sheep.

 

[Tia]

Thanks for the replies and your story thheath. I think I will give them a call.

 

[DaveNV]

Chase is doing some pretty slimy things these days.

I was a long-term loyal customer at Washington Mutual, and I had a perfect credit score with them. When Chase bought WaMu, I decided I'd see how things went, since Chase was promising that nothing would change, and everyone would live happily ever after. WaMu always gave me excellent customer service, and I expected the same treatment from Chase.

About three months later, when I objected to a late fee I was erroneously charged, I met nothing but stone walls when trying to deal with Chase's customer service people. When all was said and done, they flatly refused to remove the fee. I was never given the chance to discuss the issue with a live person.

That told me they didn't want my business very badly, so I transferred my modest balance to another credit card, which zeroed out my Chase balance.

In what I feel is direct retribution against me, they immediately sent me a snotty letter saying that since I obviously didn't need all that great big credit line I'd earned with WaMu, they were cutting my credit line by 75%.

It was at that point that I cut up the card. Chase will never get another cent from me.

Dave

 

[Talent312]

Thanks for the replies and your story thheath. I think I will give them a call.

I have a CC where they did that and I just put it away, keeping the account open. Two factors in determining credit scores are (1) average age of open accounts, and (2) the ratio of unused-to-used credit. Closing it would have shorted my account's average age and substantially reduced my anmount of unnsed credit.

 

[nygiants11991]

They've got you between a rock and a hard place, because without a credit card, it is difficult to rent rooms. And heck, I don't think you can even rent a car if you don't have one.

Like I said Rock & Hard Place.....

 

[Jya-Ning]

If we don't accept the new terms so then close the account doesn't that negatively effect your credit score?

Read this http://credit.about.com/od/creditreportscoring/qt/closecardscore.htm

But call them give them a chance to meet your view.

They've got you between a rock and a hard place, because without a credit card, it is difficult to rent rooms. And heck, I don't think you can even rent a car if you don't have one.

Like I said Rock & Hard Place.....

You can use debit card on car renting and hotel.

Jya-Ning

 

[nygiants11991]

Read this http://credit.about.com/od/creditreportscoring/qt/closecardscore.htm

But call them give them a chance to meet your view.




You can use debit card on car renting and hotel.

Jya-Ning

That is good to hear, I thought it was only credit card for car rentals.

 

[AKE]

It depends on the car rental company. The large majority prefer credit cards because they can go after you for the whole amount if there was damages to the car, not just the amount that you put down as a deposit from your debit card. I also read somewhere (but don't know if it is true) that it takes a week or more to get your deposit back if you use a debit card (and I believe that they do take a substantial deposit on a debit card). Perhaps someone with experience here can elaborate?

 

[Jya-Ning]

Yes, that is right.

the Alamo's policy is (http://www.alamo.com/itemDetails.do?HelpItemID=DEB)

Debit Cards

Debit cards are not allowed for Pre-Pay reservations.

When renting in the U.S., debit and check cards may only be used in conjunction with proof of a round trip travel ticket (airline, cruise ship or train) at time of rental.

A debit/check card is considered to be any non-credit card bearing the VISA, MasterCard or Discover Card logo.

Any other non-credit card without the VISA, MasterCard or Discover Card logo is not accepted.

For pick-ups in the United States, without proof of roundtrip ticket, debit or check cards are only accepted when returning the vehicle.

A credit card in the name of the renter must be presented at the time of pick-up.

Exceptions

Canada

In Canada, a credit card in the name of the renter must be presented at the time of pickup. Debit/check cards are only accepted for payment at time of return. A debit/check card is considered to be any non-credit card bearing the VISA, MasterCard or Discover Card logo. Any other non-credit card without the VISA, MasterCard or Discover Card logo is not accepted.



Puerto Rico

In Puerto Rico, a credit card in the name of the renter must be presented at the time of pickup. Debit/check cards are only accepted for payment at time of return. A debit/check card is considered to be any non-credit card bearing the VISA, MasterCard or Discover Card logo. Any other non-credit card without the VISA, MasterCard or Discover Card logo is not accepted.

for budget (http://www.budget.com/budgetWeb/htm...dex.html#What kinds of credentials do I need?)

Debit Card User Instructions
If you prefer to use a debit card rather than a credit card, be aware that some Budget locations will check your credit with a national credit verification bureau. Other locations might not check your credit, but will require you to present a third form of identification:

For debit card customers renting at an airport location, one of the following is acceptable as a third form of identification in addition to a driver’s license and debit card:

* A round-trip airline ticket, e-ticket, or travel itinerary to or from the airport of rental, disclosing a return date and showing the renter's name
* A valid U.S. passport or current U.S. military identification card
* A current vehicle insurance card
* A current copy (within the last 60 days) of the customer's cellular phone bill, home telephone bill, bank statement or utility bill

For debit card customers renting at an off-airport location, one of the following is acceptable as a third form of identification in addition to a driver’s license and debit card:

* A valid U.S. passport or current U.S. military identification card
* A current vehicle insurance card
* A current copy (within the last 60 days) of the customer's cellular phone bill, home telephone bill, bank statement or utility bill

Rules at licensee-owned locations and locations outside of the U.S may vary. It’s always best to check the terms and conditions on your online reservation confirmation or on the location information page to see which rules apply for your selected location. Then, if you still have questions, please contact us.

For Hertz (https://www.hertz.com/rentacar/cust...RightNow.jsp&leftNavUserSelection=globNav_9_1)

Question
Can I use my Debit Card or Bank Card to reserve a Hertz car?
Answer


At most Hertz locations, debit cards (sometimes called check cards) issued under a VISA or Mastercard logo which draw funds directly from the cardholder's account may be used to qualify for rental. However, prepaid or stored value cards which have a VISA or Mastercard logo are not accepted to qualify for rental. Debit cards must have available funds for the estimated amount of the rental charges plus up to $200 to cover any incidental charges in order to secure the rental. Both debit cards and prepaid or stored value cards issued under a VISA or Mastercard logo may be used as a form of payment when you return the vehicle. Please contact your local Hertz Reservations Office if you have a question about whether Hertz will accept a certain card.

If you don't want to use credit card, most will require you to use credit card to hold and put as deposit (but no charge), and you can use debit card to pay it.

Jya-Ning

 

[JeffW]

Received a similar "Due to changes in the law..." for my Discover Gas rewards card. Instead of 5% back on the first $100 spent, it's 2% back (on first $250/month). There were other benefit changes as well. First notice I've seen where benefits have been reduced.

Jeff

 

[dioxide45]

If it is your backup card, used for short-term charges, and it has no annual fee -- why cancel? If you pay off each month you are not affected by the rate change, right?

This may be true now. However due to changes in the law you may see credit card companies do away with the free money on new charges. Those who are paying off every month may begin paying interest on charges from the day the charge is made.

Basically because the changes in the law, the companies have to find other creative and new ways to make money that they will lose because of the changes. IMO the law gives far to lead way for the companies to basically walk all over customers until those laws go in to effect.

Also remember that while right now someone may be paying their CC off every month, there may come a time that they lose their job and need to rely on those cards for a period of time. So while the changes may not affect someone now, this may not always be the case. Better reason for people to fight back on these changes.

 

[Talent312]

... IMO the law gives far to lead way for the companies...

Ummm, "too much leeway?" Sometimes our fingers get the better of us.

 

[dioxide45]

Ummm, "too much leeway?" Sometimes our fingers get the better of us.

Yes, it appears they do. But you got the point I was trying to make.

 

[1950bing]

I noticed my CC Co. moved the due date up on me. It had always been due when the card rolled over to the next cycle but they moved it up by five days. Bet that brought in some bucks for them.

 

[GadgetRick]

I noticed my CC Co. moved the due date up on me. It had always been due when the card rolled over to the next cycle but they moved it up by five days. Bet that brought in some bucks for them.

Exactly. The wife of a friend of mine works higher up for Citi in their accounting department for cc. She explained to me, Citi, like all other major cc companies, has people (yes, people, not a person) employed to figure out ways to do things just like this. In other words, their job is to figure out what kinds of things they can change which may trick people into paying higher fees, higher rates, etc. With the MILLIONS of customers a company like Citi has, if just 1/2 of 1% of their customers fail to realize they moved the due date or something else like that, they stand to make 10s of millions of dollars.

It's a game...a sick game...

 

[Clemson Fan]

This may be true now. However due to changes in the law you may see credit card companies do away with the free money on new charges. Those who are paying off every month may begin paying interest on charges from the day the charge is made.

I doubt this will happen. It's not "free" money they are giving away b/c the merchant gets charged anywhere from 1.5-2.5% of the total charge amount by the cc company for the convienance for their customers of accepting cc's. It's one of the major ways cc companies make money and I doubt they would institute a policy like this which would completely discourage cc use which is not what they want to do b/c then they wouldn't make any money.

I'm not against cc companies making money. They are after all providing unsecured debt to people. All people have to do is declare personal bankruptcy and walk away which happens all the time, and who ends up eating all that debt, the cc company. IMO if they are going to be attacked by the government, then frankly the government has a responsibility to also "attack" those very lienant personal bankruptcy laws. Otherwise, unsecured debt should have a right to charge whatever interest they like. IMO, the only thing cc's should be hammerred for is their hidden and deceptive disclosure practices. As long as the disclosure is clear and not hidden in some legaliese fine print, then I think it's their right to do what they want to create business and profit.

 

[Pat H]

My Starwood Amex moved the due date later by 5 days! It seemed it was becoming shorter and shorter and now it's longer. That was a surprise.

 

[dioxide45]

I doubt this will happen. It's not "free" money they are giving away b/c the merchant gets charged anywhere from 1.5-2.5% of the total charge amount by the cc company for the convienance for their customers of accepting cc's. It's one of the major ways cc companies make money and I doubt they would institute a policy like this which would completely discourage cc use which is not what they want to do b/c then they wouldn't make any money.

I'm not against cc companies making money. They are after all providing unsecured debt to people. All people have to do is declare personal bankruptcy and walk away which happens all the time, and who ends up eating all that debt, the cc company. IMO if they are going to be attacked by the government, then frankly the government has a responsibility to also "attack" those very lienant personal bankruptcy laws. Otherwise, unsecured debt should have a right to charge whatever interest they like. IMO, the only thing cc's should be hammerred for is their hidden and deceptive disclosure practices. As long as the disclosure is clear and not hidden in some legaliese fine print, then I think it's their right to do what they want to create business and profit.

Bankruptcy laws are not nearly as lenient as they once were. They are far from lenient now since the last change in the law a few years ago. So those laws have indeed been attacked.

They lobbied congress to change those bankruptcy laws. Since that point, instead of changing their ways to avoid the problems they have today, the kept going happily along raking in record profits. Now that those profits are drying up and their mistakes of the past are catching up on them, they decide to stick it to everyone, including their best customers. They know full well that those behind or carrying large balances really can't do anything to fight back.

 

[Clemson Fan]

They know full well that those behind or carrying large balances really can't do anything to fight back.

Fight back? Did the cc companies hold a gun to their head making them build up those big balances? Is it the cc companies fault that somebody may be in a tough situation financially for whatever reason?

You can blame them for enabling people to run up large balances that probably shouldn't have had a card to begin with, but that's why the interest is so high for those folks. It balances out the relative risk equation. You can also blame them for some deceptive disclosure practices which I agree should be stopped.

However, we're still talking about unsecured debt here. Since it's unsecured debt, the cc companies are really the ones that can't do anything to fight back except by "harassing" people to get them to pay off the debt that they accumulated. They can charge extra fees and high interest to try and "encourage" people to pay off their debt, but that's all they can do. They can't put a lien against your house or reposses anything of yours. In the end they usually accept pennies on the dollar in order to settle these large outstanding balances.

People in this country need to start accepting some personal responsibility for their decisions and actions and stop trying to shift the blame to big bad corporations or start looking for the government to fix and do everything for them.

 

[dioxide45]

Fight back? Did the cc companies hold a gun to their head making them build up those big balances? Is it the cc companies fault that somebody may be in a tough situation financially for whatever reason?

You can blame them for enabling people to run up large balances that probably shouldn't have had a card to begin with, but that's why the interest is so high for those folks. It balances out the relative risk equation. You can also blame them for some deceptive disclosure practices which I agree should be stopped.

However, we're still talking about unsecured debt here. Since it's unsecured debt, the cc companies are really the ones that can't do anything to fight back except by "harassing" people to get them to pay off the debt that they accumulated. They can charge extra fees and high interest to try and "encourage" people to pay off their debt, but that's all they can do. They can't put a lien against your house or reposses anything of yours. In the end they usually accept pennies on the dollar in order to settle these large outstanding balances.

People in this country need to start accepting some personal responsibility for their decisions and actions and stop trying to shift the blame to big bad corporations or start looking for the government to fix and do everything for them.

Several years ago when the bankruptcy laws changed, it was mentioned that in exchange for the new laws the CC companies had to give something back. So the deal was to raise minimum payment amounts. In essence forcing people to pay their balances back sooner, but also making it harder for those already with a balance to make ends meet. At that time I thought to myself, why didn't congress ask them instead to lower their interest rates and fees? Basically it was all a one sided situation.

I agree that people need to take more responsibility and carry less debt. That is easier said than done for many. With unemployment around 10% more and more people are relying on CC to get them through. It is reality. However in this time instead of looking out for Americans best interest (yes the same Americans who have bailed them out), they choose instead to stick it to them again.

Credit card companies can indeed put a lien on ones home and garnish their wages. Sure it is costly for them to do so as they need to get a judgement agains ther debtor. This is usually why they accept far lower than what is owed. It is cheaper to take the hit than to go to court. Also they are willing to take a loss because they really are not losing any money. Most of the balance is just interest and fees that have accumulated. In many cases they get their principal back.

 

[robertk1]

We also received a letter from our credit card company telling us all about the great new features our card had.

Low market interest rate (now 28.9% vs the 7.9% we endured before the enhancements)
$50 fraud liability limit (was $0)
No grace period for new purchases (was 30 days)

There are more, but the thing is the new features enticed us to shred the card and now we use another company that still offers us 7.9%.

Incidentally, we won't keep a credit card that is over 10% and doesn't have a grace period. I'll pay cash first.

 

[jlr10]

Chase incorrectly cashed 2 checks for us and then charged us finance charges. They reversed one but then charged interest on the outstanding balance that was disputed (sending us a bill fo $1.15) They then cancelled our HELOC when we didn't respond to a request for tax records within 10 days, while on a three week vacation.

Everytime I talk to them their answer is "Perhaps you would be happier with a different bank." This would make sense if we were bad customers, but we have good credit, pay our bills on time, and have all our savings and credit cards with them. They don't care. If we are going to question anything they would prefer we just move on. :annoyed:

 

[Rose Pink]

I love my credit union more and more as I read these posts.