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rickjohnson January
2009 ago

credit card problem

I owe 6500.00 to washington mutual, they raised my interest rate to appx. 20% because of a forclosure... it was appx. 10% before, my interest per month is almost 100.00...I can not afford that,my income has been cut in half because of the bad economy. So i called them many times,they said they wont change it back. but now that its 30 days past due they raised the rate to 30%. I called agian & agian,and they said they wont change it back... now my interest per month is160.00!... I would like to pay my dept but theres no way I can afford that...what the heck do i do?

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jeffr January
2009 ago Report Abuse

Unfortunately this is what credit card companies have been doing for years and they are able to increase rates without cause, however they must notify you via writing which usually happens via those mailers saying they have modified the terms and conditions and they burry the rate increase within this agreement.

Personally, I think it is downright poor practice and in my opinion, this practice is only putting more and more Americans into debt.

What they are doing today is allowed by law – so it is not illegal.

My recommendation – continue calling your credit card company and ask to speak with a supervisor. Tell them you are unable to afford the payments and that my lowering your rate will allow you to continue payments and keep your account in good standing with them. You may also want to speak with a company who is able to help you renegotiate lower fees on your behalf, however they want to take their slice as well. Finally, you should consider doing a balance transfer to a new card which offers 0.0 APR for X amount of months or consider taking out a loan to pay down this debt at a lower rate.

The good news is that congress is sick and tired of the poor practices of the credit card companies (raising rates without cause and reason) and they will be taking serious actions in 2009. However, this may not have much of an impact on you yet. You can read more here:
http://www .ktvu.com/news/18277427/detail.html

balanica 225 Days ago Report Abuse

Read your contract again and go to them and try to speak with somebody. If don't agree with your solution try to speak with a lawyer and pay your old amount at time. Do not give up, you'll succeed. Good luck.

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