Freakin Credit Card Rant

[Glacies]

I had to take a long walk just now to get my head on straight, but get this. I bought my first house 3 months ago. I jumped through all the first time homebuyer crap, even payed off the majority of my consumer debts in order to get my mortgage. My mortgage is easy, everything is fine.

So I have one credit card I had loaded up to exactly half it's limit when I moved into the new house becuase we needed things and I didn't have the liquid. This is fine as I'm in pretty much zero debt at this point. I haven't charged anything to it in 2 months because I want this thing gone.

I went to go pay it last week and put a bunch on it, but the minimum payment was HUGE. I mean like undealable huge. I called the credit card company and they had dropped the limit due to a bad credit report without telling me. They dropped the limit so far down, I was past the limit with my card, so I had to pay all these fees plus the balance to get me below the limit.

So I'm talking to the guy tonight and he said the bad report was bogus and he was going to note that and change it, but it would take a month and I was still responsible for all the fees.

I told him I wanted to roll the balance into another card, interest free with a lower interest rate so I could get out of these massive charges, but he said unless I want more charges I have to pay a few hundred to get out from the rock before I roll the balance.

Can you beleive that crap? Does that even sound legal? I mean I'm so burned by these people right now, I'm going to do everything I can to nuke this card and stay the hell away from credit cards. I mean i'm a logical guy and I had no problem putting things on my card within reason and paying them off. Hell I payed off 2 cards already that I used because I got out of school with no money. But they seem to be legally screwing me (as I've made some phonecalls and gave more details).

I'm thinking about taking another job on the weekends in order to get this thing completely paid off. I can't see it as a bad thing anyway I look at it. Thoughts?

I feel kind of weird posting it, but I guess it's cool to get some feedback and at least rant with you guys.

 

[NullSmurf]

Nope, they can't make a change to the original terms without notice. Never heard of dropping below the current balance thought. Thank GOD my wife opens everything. Last "notice" we got from a credit card arrived in a bulk rate envelope - the kind I would have just tossed.

 

[SBellew]

AFAIK, they are not allowed to drop your limit below your current balance, and if their actions/fees caused you to go over the limit, they cannot charge you the fees.

Furthermore, if the drop was not warranted, I would expect them to cancel all actions that have taken against the account and remove any fees. Don't take the guy's word that answers the phone, go up the chain of management a couple levels.

 

[denverdog]

The credit card industry is basically organized crime. Best of luck man.

 

[humboldtflyer]

The credit card industry is basically organized crime. Best of luck man.

x2... couldn't agree more.

 

[WhiteAshes]

...and maybe talk to your attorney.

But, yeah, doin' whatever it takes to lose the credit cards seems to be A Good Idea in my humble opinion. I use debit cards exclusively at this point. I have great relationships with the three banks I use locally. So if there's an issue, I can pick up the phone or stop in and talk to someone that I know, and that knows me, and get it dealt with in short order. Thankfully, all the people at one of the bank's branches all know me well enough to recognize my voice, so when I want to make an impulse buy that's larger than the $2K daily limit on that card, I call 'em up, and three minutes later I'm good to go.

 

[BDG]

You may try talking to someone higher about your issue. Keep on them until it is resovlved.

I had a similar problem with a credit car I consolidate my other debt with. Once i moved the debt to one card I was over half the limit and the credit card company moved my interest rate from 11.9 to 21.9. Their reason was that I was now a higher risk since my balance was more than half of my max limit. After many unpleasent phone call I was able to have the interst rate lowered and my max limit increased. It is no fun dealing with credit card companies but you just have to keep pushing until you get things resoved.

Good Luck!

 

[moki]

Can you beleive that crap? Does that even sound legal? I mean I'm so burned by these people right now, I'm going to do everything I can to nuke this card and stay the hell away from credit cards.

That's what I did. I have no credit cards that allow me to carry a balance; just debit cards an an AmEx card that has the balance due in full by the end of the month.

I would highly suggest that you, and everyone else "Come down from Plastic Mountain"

You'd be shocked by how much carrying this debt really costs you.

 

[NullSmurf]

AFAIK, they are not allowed to drop your limit below your current balance, and if their actions/fees caused you to go over the limit, they cannot charge you the fees.

Furthermore, if the drop was not warranted, I would expect them to cancel all actions that have taken against the account and remove any fees. Don't take the guy's word that answers the phone, go up the chain of management a couple levels.

Yupper! :thumbs:

Raise HELL!

 

[MiamiCubano]

Can you beleive that crap? Does that even sound legal? I mean I'm so burned by these people right now, I'm going to do everything I can to nuke this card and stay the hell away from credit cards.

That's what I did. I have no credit cards that allow me to carry a balance; just debit cards an an AmEx card that has the balance due in full by the end of the month.

I would highly suggest that you, and everyone else "Come down from Plastic Mountain"

You'd be shocked by how much carrying this debt really costs you.

Couldn't agree more. I haven't had debt in many years, and now only carry for my little wife and I an Amex Black, Amex Plat, and a Mastercard, which all are paid off each month. Try to avoid carrying debt on credit cards as much as possible. Also, sign up for a credit-monitoring service - those are invaluable. Each time you get an inquiry, a change, what have you - it alerts you immediately. Very cheap for the service they provide.

Good luck with this and give them hell.

 

[Glacies]

How do you even raise hell in a situation like this? It worries me becuase I feel like if I piss off these guys, they're going to F me even more.

 

[PSTAN]

What they have done is not correct. Although it doesn't sound like much, report them to the Better Business Bureu. When you call them again, tell them that they have been reported and ask to speak to a manager, not a supervisor. Also tell them each time they give you the run around is being documented in a letter that is being sent in to add to their "file" at the BBB with the names of each person you talk to.

 

[MiamiCubano]

How do you even raise hell in a situation like this? It worries me becuase I feel like if I piss off these guys, they're going to F me even more.

The BBB is well and good if you want the warm fuzzies, as they do little else to accomplish anything or provide substantive results/relief.

Report them to the Federal Trade Commission. You can file a complaint with their consumer services/protection division here.

Also, report them to the Economic Crimes unit and/or the Consumer Protection unit for the State Attorney (or Attorney General) for your home state AND for the state in which the credit card company in question is headquarter AND incorporated (so likely three complaints - your state, their hq state and their incorporation state - likely Delaware). All very easy and something you can probably do right on line or by way of a quick letter, cc'ing all parties. Also, you can often find consumer protection services within your state Department of Agriculture. Sounds odd, but that department also heads up consumer services divisions for multiple venues. Here in Florida, our Comm. of the DOA is named Charles Bronson. You gotta love that. But, check with your state's as well.

That will get their attention and make them work far more than they care to.

 

[PSTAN]

How do you even raise hell in a situation like this? It worries me becuase I feel like if I piss off these guys, they're going to F me even more.

The BBB is well and good if you want the warm fuzzies, as they do little else to accomplish anything or provide substantive results/relief.

Report them to the Federal Trade Commission. You can file a complaint with their consumer services/protection division here.

Also, report them to the Economic Crimes unit and/or the Consumer Protection unit for the State Attorney (or Attorney General) for your home state AND for the state in which the credit card company in question is headquarter AND incorporated (so likely three complaints - your state, their hq state and their incorporation state - likely Delaware). All very easy and something you can probably do right on line or by way of a quick letter, cc'ing all parties. Also, you can often find consumer protection services within your state Department of Agriculture. Sounds odd, but that department also heads up consumer services divisions for multiple venues. Here in Florida, our Comm. of the DOA is named Charles Bronson. You gotta love that. But, check with your state's as well.

That will get their attention and make them work far more than they care to.

Damn! That is a little more than a kick to the nuts...Great Suggestions!

Personally, the BBB has done nothing but take up my time with very little, if any feedback.

 

[KeithS]

Also throw in your closing the account if they don't take care of their mistake to your satisfaction. Every time I do that I usually get moved to a "better" card with better interest rate and features. You can close a card even if you have a balance and just pay off the balance. Just make sure it gets reported correctly on your credit rating that the account was closed at your request.

Definetly go up the management chain, especially if you are still dealing with someone in India.

Keith

 

[enerjay]

The credit card industry is basically organized crime. Best of luck man.

How true is that. Sorry about the luck but be persistent. I had three years ago, dug a hole with them. Decided the best thing to do at the time was to cancel them and pay them off. WHOOPS, what was never told to me was that you lose 30+ points when you cancel a credit card. That hurt and still hurts today.

 

[mmburtch]

MC beat me to it. The States Attorney General office is the right place to start. I would also suggest sending a certified letter to the CC company and a copy to yourself First class mail disputing the fees. Don't open the letter you send to yourself. This will bear record that you disputed this in the proper timeframe.

Proactively also, I would reccomend sending an explanation of the situation and the credit limit reduction to all three credit bureaus. Just as a CYA for your credit.

Good luck, Fight the good fight.

 

[moki]

Also throw in your closing the account if they don't take care of their mistake to your satisfaction. Every time I do that I usually get moved to a "better" card with better interest rate and features. You can close a card even if you have a balance and just pay off the balance. Just make sure it gets reported correctly on your credit rating that the account was closed at your request.

How hard credit card companies will try to keep you as a customer should clue just about anyone in on how much money they are making off of you.

It took me an incredibly long time to cancel one of my credit cards; I was transfered to a manager, and then to a "fixer" whose job is nothing but convincing you not to cancel your credit card.

When they go to these lengths to keep you as a customer... you're getting no reach-around folks... just an anal raping.

Again, cancel your credit cards that allow you to carry a balance, use a debit card, and live within your means.

 

[Glacies]

Well, I had to pay the ridiculous amount of money to get them off my back (maybe I didn't have to, but since it goes against my orginal balance I'm not complaining, just helps me pay this off faster) so I'm pretty bare bones right now. THinking about getting another job just to pay this thing off ASAP. The deal I made was that they're taking all those penalties and bogus charges off because whatever the hiccup was with my credit report was untrue and today they're rolling that account into another with less than half the interest rate so I can get rid of this balance. I think they're scared of me, but to be honest, I'm terrified of them.

We certainly don't live beyond our means, I just have very little liquid on hand after I bought our house and didn't expect this type of bullshit. It really is organized crime. I could actually pay the entire balance off if I liquidated something, but I will take such a murdering from that, I think it's worth having less than $100 until tomorrow. I will however not be buying any cigars for a bit. So stop tempting me fellas.

 

[tone-ny]

Also throw in your closing the account if they don't take care of their mistake to your satisfaction. Every time I do that I usually get moved to a "better" card with better interest rate and features. You can close a card even if you have a balance and just pay off the balance. Just make sure it gets reported correctly on your credit rating that the account was closed at your request.

How hard credit card companies will try to keep you as a customer should clue just about anyone in on how much money they are making off of you.

It took me an incredibly long time to cancel one of my credit cards; I was transfered to a manager, and then to a "fixer" whose job is nothing but convincing you not to cancel your credit card.

When they go to these lengths to keep you as a customer... you're getting no reach-around folks... just an anal raping.

Again, cancel your credit cards that allow you to carry a balance, use a debit card, and live within your means.

Andrew I couldn't have stated this any better! I have one credit card because car rental companies screw you over if you only have a debit card.