If I closed my credit card account after they raised my rate to the penalty apr on Nov 5 2009, can they refuse to lower my apr after 6 mo? HR 627 to the best of my understanding says they cant do that. They refuse to do anything about it due to the account being closed.
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Hi again, and thank you.
With regard to your post:
If I closed my credit card account after they raised my rate to the penalty apr on Nov 5 2009, can they refuse to lower my apr after 6 mo? Unfortunately, yes. Once you close your account, you have no further business relationship and they need not lower your interest rate on old debt. Of course, if they raised your interest rate without validity from the beginning, you can argue that that raising was not pursuant to your contract. However, you indicate that it was due to a penalty (meaning, you missed contractual obligations of payment, which you agreed in your contract would result in a raising of your interest rate).
HR 627 to the best of my understanding says they cant do that. Please give me the specific section. Here is the current Act for you to refer to. If you read the sections on reductions of rate, it only concerns accounts, not balances left on closed prior accounts. You no longer have an active account.
They refuse to do anything about it due to the account being closed. Yes, generally, that is their right, since you closed your account. I know credit card debt is incredibly burdensome for us, the sooner we all rid ourselves of relying on same, the better. You are far from alone.
I suspect your best bet is to scrape to pay as much as you can to get rid of the balance of this closed card, as soon as possible.
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