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FIA Card Services / Raising Interest Rate Arbitrarily

1 United States Review updated:

I have been a card holder for 10+ years. I've had the rate of 6% the entire time. I've been paying $100/Month, and have been doing so for about 5 yrs. I get charged $16 or so per month in finance charges, and occasionally make purchases. I don't even look at the statements except online to make sure no charges appeared that I didn't authorize. I'm willing to eat the $16 for the convenience of keeping the 6% rate.

I've continually held a high balance because I've been paying off other debts for these 5 years, and am 3 months away from doing so. This month I noticed on my credit monitoring service that I had a delinquency. I immediately went to my Bank of America site to make sure the payment had gone through. It had.

Low and behold my interest rate had been raised to 19.99% without my knowledge. they had also doubled my minimum payment. I had been lax for the last 3 months, and have now amassed several hundred in late fees and will have my credit destroyed.

Can anyone help me to figure out if I have any recourse? Are there any class action lawsuits out there currently in regards to this? If not, any lawyer want to start one. This is obscene and violates any sense of decency in lending. My debt to incom ration is miniscule, I haven't been delinquent in over 4 1/2 years (they were aware of these). My available credit is pretty substantial, my score is mid-700's, and they are mailing me a statement as to why they raised the rate, but the gist was "concerns over the balance being carried, along with something on a recent credit inquiry that have caused us to raise the rate". I have made no purchases, no new credit, no credit line increases, nor anything which should trigger this.

The rate had gone from 6% to 19.99, and apparently now has gone to 29.99% this is institutional rape. I will be facing years of a lower credit score because some analyst decided that if they raise the rate on a certain niche of people, only "X" percent wil actually check their statements, and because we are so big, they will be forced to pay us fees. This should result in a direct boost to the bottom line of "X"/ per 1000 people we arbitrarily raise the rates on.

This is disgusting and violates fair lending practice.

In this time when the country needs people to spend, I’ll eliminate all credit, not purchase until later and wait until I get cash. I know this is the sensible thing to do, but the credit card companies should throw a parade for people who carry a high rotating balance and pay on time.

I need some legal help, and I'm sure I'm not alone. I now know that I should check my interest rates and every little thing on every piece of paper I receive from every company.

I'm going to need an assistant to do this. Maybe I'll just sue the crap out of them, and have the money to pay to have someone check the fine print on every monthly statement I receive. I’m serious, if there’s a lawyer out there doing this or thinking of doing this, I’m in. FIA, if you’re reading this, shame on you.

Da
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Comments

  • Rs
      1st of Jan, 2009
    0 Votes

    I also had a FIA account recently, we were paying 12.99% for many years, always paid on time, and always paid double the minimim payment. We were shocked when out of the blue, with no warning, they raised our rate to 27.99%!!! Our payment doubled, and when I called them, the lady I spoke to couldnt even believe this was happening to us. We have excellent credit, so this made absolutely no sense, and they could provide no answers or excuses. I believe this is against some kind of law. It is so morally wrong, especially in this current financial crisis. Now they just raised APR to 29.99% because we didnt pay the huge bill they sent on time. This is a terrible corporation, please think about not signing up for this credit card, they have shady practices!

  • Ga
      2nd of Jun, 2009
    0 Votes

    My FICO is over 750, I am in a better financial position than I've ever been and out of the blue, FIA decides to DOUBLE MY INTEREST RATE from 11.99% to something like 22%! Damn crooks!

  • La
      19th of Jun, 2009
    0 Votes

    Fia raised me from a promotional 1.9% to 15.99%. Outrageouss and immoral. This economy will never improve while the banks are allowed to continue with these practices. Doesn't the government see the light? We can't spend on new things and boost the economy if we're trying to pay off our credit card debts at these high rates of interest.

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