Credit Card Forum
  1. #1
    Green Member
    Join Date
    Nov 2012
    Location
    cape coral
    Posts
    3

    Angry Expiration Date on Balance Transfer Offer

    5 years ago I did a balance transfer with Discover at 3.99% fixed. I have excellent credit and have made monthly payments as required.

    Two months ago, Discover said this offer had expired and they upped the interest rate to 13.24%. I wrote to them and they credited the excess interest for 2 months but said that the interest rate change was valid.

    So I called yesterday and spoke with 3 different people. Discover supervisor claims that they have no legal obligation to post an expiration date of a discounted interest rate monthly. They claim that it was on the original documentation which I no longer have and that is the only requirement that they have.

    I am sure that this was an indefinite offer and that they 1. legally had the responsibility to show the offer was expiring (if it was) and 2. legally had the responsibility to inform me if they wanted to increase the rate allowing me the option of closing the credit card.

    Does anyone have experience with Discover and the laws on this issue. I have taken it to the Discover page on Facebook to out them!
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  2. #2
    Centurion Member
    Join Date
    Oct 2010
    Location
    CA, USA
    Posts
    223

    Default

    So you did not pay off that balance transfer you started 5 years ago? Promotional interest rate on balance transfer usually last between 6 to 18 months, so that 3.99% APR is already long gone.

    Discover IS correct that they have no legal obligation of printing expiration date on your credit card statement. They only need to state the term on your terms and conditions.

    Furthermore the only time a credit card company needs to inform you of APR increase is if it is something that is not on your terms and conditions.

    An example of which inform is mandated: Your 13.24% APR is suddenly increased to 19.99% because you opened too many credit card accounts. You can close the card and pay off existing balance at 13.24% APR.

    An example of which NO inform is required: You have 0% APR on balance transfer for 12 months, after which any balance unpaid will have interest rate back to original 19.99% APR. You cannot keep 0% APR, even when you closed the card right before the end of 12 months.

    Sorry but I have to side Discover on this one. Also how come you have not pay off that balance transfer?
    In My Wallet:
    Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
    Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
    BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  3. #3
    Centurion Member
    Join Date
    Aug 2011
    Location
    Phoenix
    Posts
    952

    Default

    I have never heard of Discover, or any other creditor outside of PenFed, that offers a "for life" balance transfer. After 5 years at 3.99% I would consider myself lucky and move on (although if I am going to be judgemental-which I am-after 5 years your happy behind should have paid it off).
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  4. Centurion Member
    Join Date
    Jul 2011
    Location
    New York
    Posts
    1,341

    Default

    Quote Originally Posted by CC Deville View Post
    I have never heard of Discover, or any other creditor outside of PenFed, that offers a "for life" balance transfer..
    I have.

    "Some Chase credit cardholders accepted promotional loan offers whereby the loan was subject to a fixed interest rate (APR) until the loan balance was paid off in full. In November 2008 and June 2009, Chase sent some of these cardholders a “Change in Terms” notice, raising their minimum monthly payment from 2% to 5% of their outstanding account balance and, in some cases, applying a $10 monthly fee to their account. Plaintiffs brought the litigation alleging that the Change in Terms was improper. Chase contends that the Change in Terms was lawful and denies that its conduct was in any way illegal or improper. Plaintiffs and Chase have agreed to a settlement to resolve this lawsuit."

    Chase Bank USA Contract Settlement
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  5. #5
    Centurion Member
    Join Date
    Aug 2011
    Location
    Phoenix
    Posts
    952

    Default

    Quote Originally Posted by DavidNY View Post
    Hmmm. I wonder if that is the situation with Rosie. 5 years seems very generous for a relguar balance transfer. I guess we will have to see if Rosie bothers to come back and tell us or if like her two Facebook posts, she was just venting. I'd also like to know what she was financing for 5 years....the national deficit?
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  6. #6
    Green Member
    Join Date
    Nov 2012
    Location
    cape coral
    Posts
    3

    Default

    I paid off other balances that had higher rates and since this was so cheap, I saw no need to pay it off earlier. I believe that credit card companies should legally have to disclose expiration of dates. Every other credit card company I have ever worked with has shown this. If it isn't the law yet, I will make every effort to make it a law. There is suppose to be transparency in credit card laws.

    While I appreciate the input I received, do you still have documentation from 5 years ago? I maintain that the balance transfer offer was indefinite and an expiration date was never disclosed.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  7. #7
    Green Member
    Join Date
    Nov 2012
    Location
    cape coral
    Posts
    3

    Default

    Not the national debt but my household has been hit with layoffs and forced early retirements and we didn't bail on our debts by filing for bankruptcy. Most of our debts are paid off despite long term unemployment. Be happy if you still have a job.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  8. Centurion Member
    Join Date
    Oct 2010
    Location
    CA, USA
    Posts
    223

    Default

    Quote Originally Posted by Rosiegirl7 View Post
    I maintain that the balance transfer offer was indefinite and an expiration date was never disclosed.
    Doubtful. No sane lender is going to have an indefinite promotional offer going on. It is like saying you can borrow $10,000 from me and pay me back $20 per month forever. I will never get to see the light of my $10,000.

    I commend your effort of paying back debt without filing for BK to discharge or adjust your debt, but this one is on you. Just like rental contract, you should never throw away your terms and conditions. You learned your mistake, so it is time to move on.

    My recommendation for you is to find a way to consolidate your debt. You can do this by personal loan, social lending, or another credit card (assuming your total debt is not huge). Otherwise pay down whichever has the least balance, and so on. That way you can free up more minimum payments.
    In My Wallet:
    Citi Forward (12/2010) | Citi TY Preferred (05/2011) | Chase Freedom (11/2011) | GECRB/PayPal (05/2012)
    Discover it (07/2012) | AMEX BCP (09/2012) | TD/Target REDCard (10/2012) | Chase Ink Classic (11/2012)
    BofA BBR (04/2013) | FNBO/Overstock.com (02/2014) | Barclaycard Arrival (04/2014) | FIA/Fidelity AMEX (04/2014)
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

  9. #9
    Platinum Member
    Join Date
    Oct 2010
    Location
    Chicago
    Posts
    99

    Default It is both good form and a requirement to disclose adverse events

    There sounds like 2 items that may be getting confused. First how long the draw period was for getting the promotional rate which almost always has a disclosed time period but whatever was disclosed was disclosed and that will govern.

    The second is how long the rate is good for on the actual funds that were used. When an issuer promises a rate, be it the standard APR or the promotional APR a time frame is either disclosed or it is not. Again the documentation will govern. If you don't have it they absolutely should and should be able to show it to you. No one can just raise your rate without disclosing it (which was either done when you took the advance or when they made a decision to do so based on some valid criteria / although probably not at both times).

    Issuers frequently get these things right, but not always, so ask for the documentation or the authority they used to make the decision - if the account agreement says at will, well then thats what you agreed to.

    As too what your motives are or what you"should" be doing or how long you had the low rate for ; well thats all up to you and quite frankly matters little. Its all about what was agreed to and what was disclosed.

    One would also think thats its just good a good form of communication and some basic common sense to let a customer know when something like this was happening and why. But thats just my opinion.
    Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiTweet this Post!
    Reply With Quote Reply With Quote

+ Reply to Thread
 
These forum posts are not provided or commissioned by the bank advertiser. Posts have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
Advertiser Disclosure: The credit card offers that appear on this site are from credit card issuers from which CreditCardForum.com receives compensation. This compensation may impact how and where products appear on this site, including the order in which they may appear within listing categories. CreditCardForum.com does not include all credit card offers that might be available to consumers in the marketplace.