Consumers faced with having lines of credit terms changed can learn of new protections from the new Credit Card Accountability, Responsibility, and Disclosure (CARD) Act of 2009, but also take some cues from National Foundation for Credit Counseling (NFCC).
NFCC says:
• Ask for an explanation. You deserve to know why the terms of your account were changed. Inquire.
• Fight to get your previous terms reinstated. If you've been a good customer, call the issuer and plead your case. Have your financial docs in a row before picking up the phone.
• Build your case before you call. Know how long you've been a customer, the amount you usually charge each month, your payment history, etc.
• Prove your worth. Get your credit report for free from AnnualCreditReport.com -- not sound-alike pretenders (no matter how good the music). Review it for accuracy. Make sure that you and your creditor are seeing the same information. Also get your credit score. It's not free but worth the nominal cost. A good credit report and a high credit score is what your creditor should want.
• Make creditors feel secure. Point out that you're in a field that is not susceptible to layoffs, and that you have a steady income.
• Prepare to negotiate. Know what you want before you call, but be willing to negotiate. For example, if your interest rate has been raised and your credit limit has been lowered, start off asking that both be returned to the previous levels, but determine in advance what's best for you. Do you need a low rate because you carry a balance over from month-to-month? Does a high line of credit matter more?
• Talk to the boss. Ask for a supervisor. If you're not getting the answers you want, move up the ladder until you either get what you're after, or are convinced they are going to stand firm.
• Consider closing the account. If it makes more financial sense to do so, ask to have your account closed, with you continuing to pay the balance under the former terms. This option is often the right one for consumers who have had their interest rate or minimum payment raised to an exorbitant level. If it's going to be a true financial hardship to meet the new terms, it's better to just close the account.
