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Question

I contacted Chase to reduce my interest rate on my credit card, Chase told me there is nothing they can do. I am a long time customer that had an interest rate of 11.26% until August 2009. In August the interest rate was increased to 29.99%, is this legal???? I was told that I was late in June and July by 2 days not 15, not 30 but 2 days! Please tell what my rights are. Thank you. Wanda Hawaii

Submitted: 17 days and 21 hours ago.
Category: Finance
Value: $28
Status: CLOSED

Accepted Answer

Dear XXXXXXXXXX,

 

I am sorry to hear about your situation.

 

We have heard credit card companies chargign as high as 30-31 % but most top out at 29%.

 

What you have become victim of what is called the unethical practice that most credit card companies do. From the legal angle, as also must be in the credit card agreement that you would have signed, its always mentioned that credit is at the sole descretion of the company and they are rightfull to change the rate and other terms and condtions.

 

From all practical way, there is nothing that one can do. Federal law sets no nationwide limit on how much credit cards can charge.

 

While many states have usury laws that regulate the rates on all types of loans, they only apply to banks based in that state and don't protect consumers who borrow from out-of-state lenders.

 

That's why most major credit card companies are incorporated in Delaware or North Dakota. These states have no usury laws and therefore impose no limits on how much they can charge customers across the country.

 

If your credit card company has a maximum rate it will be stated in the "Terms and Conditions" -- that incomprehensible booklet you were given when you signed up. But many of those agreements simply say rates can be changed as often as the issuer wants and without any notice.

 

Coming to your query in specific, you delay of JUST 2 days and you are put to 29.99% is totally unfair to you. I would advice you to approach National Arbitration forum http://www.adrforum.com/ and obtain arbitration in your favor. You can reach them at National Arbitration Forum
P.O. Box 50191
Minneapolis, MN XXXXX-XXXX
USA

 

Email: XXXX@XXXXXXXX.XXX
Website: www.adrforum.com
Telephone: XXX-XXX-XXXX, or toll-free XXX-XXX-XXXX
Fax: XXX-XXX-XXXX, or toll-free XXX-XXX-XXXX

 

Alternatively, getting this fixed involves negotiation with your credit card company and justifying your positions (i.e just 2 days and no history of defaults) which may not be a easy task for an individual but also NOT SO difficult.

 

The following may be a useful resource in getting out of this::

 

http://credit-cards.interest.com/credit-cards/escape_universal_default_09262007.html

 

I am sure the above will help...

Regards,

Picture
Expert: Milan Vaishnav
Pos. Feedback: 99.5 %
Accepts: 
Answered: 11/5/2009

Financial Advisor

Technical Analyst in Financial Markets -- Experience of more than 10 years in consulting

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