jeffysdad wrote:when they switched the rate to variable? If so, does the change affect the previous balance or only new charges? I don't know but I'm guessing they can change the rate for future purchases but not retroactively on old balances.
I would complain to the bank first if you haven't already and get them to explain what they did. Regardless, I would pay off any balance and close the account if it charges any kind of fees. There are lots of credit cards out there, and you are the "debitcardguru" anyway.
I wish I could pay it off. It is a low balance. Money is tight. I am on dial-up that how tight it is.
No, you are misunderstanding. Last year, I got a notice saying my rate was going to change to a variable rate the next month. I wrote them and rejected the account changes and they closed my account. My rate remain fixed until March 2010 on a closed account. They changed it to a variable rate. It is lower than the fixed rate, but it could go above the flat rate at any time.
I tried contacting them by email, it is over their head. I had someone help me with the letters because my grammars not that great and the email representatives still didn't get the point.
In fact, here what is I am going to say to them. When I send the dispute in.
I am disputing the change of my flat APR to a variable APR, because I rejected the new terms you sent me and then you closed my account. I rejected the new terms, because I didn’t want a variable APR and to keep my minimum payment calculations the same. By you changing my APR to a variable rate it may violate the Fair Credit Billing Act and may violate contract laws on a closed account. I have no problems as long as my APR remains under xx.xx% and my minimum payment calculation remains the same. However, it is my understanding you can never go over xx.xx% APR unless I default, because I didn’t agree to the new terms and I still don’t agree to the new terms.
Even if the new credit card act allows them to change it to a variable rate on a closed account, I never got the 45 day notice. I said may because we are not sure if does violate contract laws or the FCBA.