Credit Card Combat: 4 Ways Consumers Can Fight Deceptive Rate Hikes
10/28/2009Today, the Pew Charitable Trust (a non-political and non-partisan Think-tank) released results from a study conducted with American Credit Card Holders (“Safe Card Project”). After Banks and Credit Card Issuers advertised low “Teaser Rates”, nearly 100 percent of these companies raised, or allowed Card Issuers to raise the rates in a deceptive manner!
Pew Poll 10/28/ 09 Finds Deceptive Credit Card Rate Hikes
Try not to be shocked when you read some of the Safe Card Project findings below:
- 99.7 percent of bank cards allowed issuers to increase interest rates on outstanding balances – a jump from 93 percent in December;
- 95 percent of bank cards permitted issuers to apply payments in a way the Federal Reserve found likely to cause substantial financial injury to consumers; and
- 90 percent of bank cards had penalty rate hikes with the vast majority imposed by “hair triggers” of one or two late payments in a year.
~ Source: Pew Charitable Trust, October 28, 2009.
Safe Cards Project Calls On The Fed To Force Credit Card Issuers To End Deceptive Practices
The Pew Safe Cards Project found disturbingly “disproportionate” penalties on American Credit Card Holders. Nick Bourke, Manager of the Safe Cards Project called on the Federal Reserve to take action to halt such deceptive practices. All due respect to Mr. Bourke, but the Federal Reserve, in our opinion has no reason to halt the deceptive practices of the Banks and Credit Card Issuers.
Can you believe that even after the ‘Credit CARD Act’ of 2009, was signed into Law, nearly 100 percent of Credit Card Companies are jacking up rates by 20 percent? How can American Credit Card Holders combat such attacks on their financial security? Keep reading to find out. Thanks for stopping by 
.
4 Ways Consumers Can Combat Deceptive Credit Card Rate Hikes
What is a hard-working American to do to end these deceptive Credit Card practices? No the answer is not file Bankruptcy. There are better options that Debt Warriors will share below.
You Can Eliminate Your Credit Card Debt Up 5 Times Faster Yourself!
1. Let go of Loyalty.
While negotiating Credit Card Rates for clients, we’ve encountered many Credit Card Holders who are “Loyalist”. Loyalist tend to think that they have to take what they get from the Credit Card Issuer. It’s like being in an abusive relationship. The Loyalist doesn’t want to leave for fear of not finding anything better – or worse, finding something worse.
Rhonda, was a client of mine who got really angry while I was negotiating on her behalf. She was fearful that I would make her Bank angry and that she’d have to live with the consequences long after I was done helping her. Rhonda kept telling me that she didn’t want to start any trouble. I told her, “all due respect, you’re already in trouble”. She had an interest rate of over 24% (up from 9.99%). But she feared that if I got too tough with her Bank, that she’d end up owing them more money.
The fact is, Credit Card Issuers have a lot of competition. There are so many Banks, Credit Unions and Card Companies fighting for new Customers everyday. Consumers benefit by being loyal to themselves and their financial future and not some Credit Card Issuer who could care less.
2. Shop around for better rates.
Another thing that many Credit Card Holders fear is damaging their Credit Score by shopping around for a better rate. This fear is based on lack of knowledge. The fact is, the Card Holder can not hurt their Credit Score by asking “what rates do you currently offer”? The Consumer does not have to provide any personal information until they actually apply for the card.
In the Credit Card Medic Video Course, Debt Warriors take Consumers step-by-step through the safe way to apply for a new Credit Card without hurting their Credit Score.
3. Consider a Balance Transfer to a Credit Union.
We make no secret that Debt Warriors are big fans of local Credit Unions. Like Banks, Credit Unions are backed by the U.S. Federal Government. Unlike Banks, Credit Unions are local and offer better rates and terms for loans and transactions. To find a local Credit Union, click here to go to the National Credit Union Administration website.
4. Take Action.
Finally, once a Card Holder has been deceived into a high rate Credit Card or, suspect as much, take action. Consumers should contact the Bank or Credit Card Company and don’t be afraid to engage in combat with them. Ask them to honor the offer that was agreed to, if Credit Card Issuer refuses, contact the Better Business Bureau and report them. Or contact Federal Trade Commission to file a complaint by calling 877-FTC-HELP.
