If you have Department Store Credit Cards, or any Credit Cards... (Page 3)

SweetK - 2009-03-12 9:48 PM

Check your APR/Finance Charges...

I just noticed that all the APR's for the cards I have have gone up! I have zero balances on most of them (thank goodness) and good credit and still the cards rates have increased significantly.

As an example:

Target Visa: Finance Charge now 20.99%, it started out at 14.99% in 2007
Chase Visa: Finance Charge now 14.24% up from 10.99%

Talbots: Finance Charge now 22.90% previously 18.99%
Macy's: Finance Charge now 26.90%, previously 22.99%

I don't know what rates other companies have, but my good old Credit Union Visa is holding at 10.29% and is not going up. Thank goodness.

If you have some companies to list, please do, I think it would be a good thread of reference for BT'ers.

I really don't shop anywhere other than TJ Maxx and use my debit card or cash for all purchases, no credit cards. I have boycotted Macy's since July 2008 as a result of their APR and most recently, since last month, boycotted Target b/c of Target National Bank and also Talbots. Although I don't carry balances, I find it a complete travesty these lenders are squeezing more out of the American consumer. The result is people carry higher balances b/c of APR's, they can't pay off their cards, and they can't and won't shop and therefore they can't stimulate the economy b/c of the credit crisis. I'm boycotting on principle even though I am a fashionista

I haven't yet boycotted Ann Taylor (that would be a travesty for me) but I fear their day is also coming.

I have made many phone calls to the banks, sent complaints to my Attorney Generals office, the Federal Banking Commission, and BBB's and really, no one listens to the consumer! I would love to start a national petition... I have to figure out how to make a valid one because I'm serious about this. The consumer is of no value to these companies and they DO NOT and WILL NOT adjust APR's... and if you decline the APR increase, you keep your former APR but have to close your card. As a result closing your CC your Credit Rating goes down. You just can't win.

I'm in a good position, but I feel for others out there. I had CC trouble right out of college and it only took one time to learn a hard lesson... I could only imagine what some are feeling now with the CC victimization but also loss of their jobs, homes, etc...

Thanks for listening..I had to vent

the bear - 2009-03-13 12:32 PM

Closing the account may not hurt your credit card as bad as you think, certainly depends on your overall credit history and how this card fits into it.

Regardless, closing the account is not your only option, and certainly not worth paying an extra 10% or more. What is stopping you from finding another card with a lower rate of interest, or refinancing the outstanding balance under another lower-cost option, and leaving the CC account open?

deskjockeyjim - 2009-03-13 9:53 AM
There's no federal law I'm aware of that guarantees the 'chargeback' under any circumstances, other than contract law. 

Do you have any experience to back up your statement or is this just your gut feeling?  Your statements have typical 'anti-debit card' FUD all over them.

Bripod - 2009-03-13 9:55 AM
You're wasting your time - I already posted that link above and he didn't believe me.

breckview - 2009-03-13 1:18 PM

I don't think either one of us went to law school but isn't the difference pretty obvious between the above and a federal law that, according to FTC, states "IN ANY EVENT, your maximum liability under federal law is $50 per card."

(A)As you state, the debit card companies claim the same fraud liablity but it's not true. (B)It's a company guarantee as opposed to a federal law. (C)I'm sure it's fine until someone drains $50k out of your account. (D)In that case, I have a feeling it might not be that easy to collect.

Bripod - 2009-03-13 12:39 PM
B. You are incorrect, it is federal law [see above]

breckview - 2009-03-13 3:12 PM

I'm done. No hard feelings here. I'm going skiing

SweetK - 2009-03-13 8:53 AM I'm upset at the lack of compassion here... The banks can never and never do anything wrong... they get bailout money and still screw the consumer. I'm upset about that, it is "evil" as leapdog so conveniently stated somehow by putting the words in my mouth. I bet for everyone who responded, there are those who read my OP and looked at their CC statements and were shocked and maybe upset as a result they became more aware - for that I am grateful. For the flaming no. BT is just not a community for me, well not the COJ community anyway.

If I close the account it hurts my FICO, plus I think that gves them the option to demand the balance in full and seeing how all these banks got themselves into trouble I believe they would.

TriRSquared - 2009-03-13 6:23 AM

We got a notice from BoA yesterday telling us we got "approved" for a 7.9% rate for all travel purchases (airfare, cruises, hotels etc...).

Then at the very bottom in VERY small print they tell us our regular APR is going up to 29.4%.

We've had this card for 12 years.  Our rate started at 10.5% 12 years ago.  Our credit score is in the 800s.  Have NEVER carried a balance (I think I was late on one payment one time in 12 years) so they have not made a penny off of us. 

And this is a cash back card so over the years they have probably LOST $10k+ to us (we put EVERYTHING on the card including $5000 down payments on cars)

I can't blame them for trying to make money but those rates are getting ridiculous.  God forbid I accidentally miss a payment.

Oh and they time frame from when I get my bill to when it is due has been getting smaller and smaller over the years (it's down to about 11 days now).  I called to complain and they told me "if you carry a balance we can give you more time but since you do not we cannot change it".  Wow...

breckview - 2009-03-13 10:50 AM "By law, once you report the loss or theft, you have no further responsibility for unauthorized charges. In any event, your maximum liability under federal law is $50 per card." http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre07.shtm Common sense and cautionary tales are my experience. You can search the 'net yourself and read as many debit card nightmares as you want. Or don't. I'm against debit cards for you. I'm against them for me. BTW, your attempt to belittle my finance knowlege was noted. True, I don't work at a bank or a credit union. However, my credentials in finance and investments are actually pretty impressive to most.

nevergivin - 2009-03-13 4:08 PM Thing about credit cards is they have all the leverage, I just got shafted by Chase/Wamu, online bill pay does not Guarantee anything, I made a payment to the same bank I have my card with,you would think it would go through in the same amount of time it usually took the other four years, not when they did the Chase /Wamu switch. My Bank told me paid is when they withdraw it from your account, not when it gets posted at the credit card co., they are at liberty to post a payment date when its to their advantage and there is no way to prevent late fees if they so choose. I checked into any laws and don't think there is any that define a posting time frame after funds are delivered through online bill pay. I cant even look at what my rate might be now. I have closed the account since, I don't care if it lowers my rating like they say!