Is the illegal?

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debitcard guru
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Is the illegal?

Postby debitcard guru » Sat Mar 13, 2010 11:05 am

Last year, This credit card company sent me change of terms last year. I rejected the term because it was going to change to a variable interest rate. They closed my account. The flat rate stayed the same, then in March they changed my rate to a variable interest rate without any notice.

Does this violate any of these laws or regulations?
Breach of Contract laws, Fair Credit Billing Act, or The Credit Card act?

Remember, this account new terms was rejected last year and the card company closed my account.

I am going to send a dispute letter in.


jeffysdad
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Was there a balance on the account...

Postby jeffysdad » Sun Mar 14, 2010 6:54 am

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.
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debitcard guru
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Postby debitcard guru » Sun Mar 14, 2010 12:49 pm

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.

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Postby fffresh » Sun Mar 14, 2010 3:34 pm

How much below the fixed rate is your current variable rate? How soon do you think it will be paid up? It is unlikely the Fed will increase the Prime Rate by much over 2010. If you variable rate is at least 1 or 2% below the fixed rate I would say you better off staying with it.

If you do want to change it anyway that is your right. It sounds as they made a mistake in not preserving the original terms when the account was closed. I would send them that message and file a complaint with the BBB at the same time.



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