Credit
Card Raises Rate
Providian Raised My APR to 29.99% by Scott Bilker
Scott Bilker is the author of the best-selling
book "Credit Card and Debt Management."
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Scott,
I was shocked to learn my Providian credit card
raised my APR from 23.99 to 29.99. I've never
missed a payment or been late. I called to find
out why and the rep told me they mailed out a
notice of change in terms. I said I never received
the notice. They basically said too bad, but we
can mail you out another one. I was so angry I
closed my account. I waited for the promised re-mail
of the notice. It never came. I called again,
this time asking to speak with a supervisor. I
calmly explained the situation, reminding them
I've never missed a payment or been late, not
even once. They said there was nothing they could
do, except mail me the new terms. Still, another
billing period and no terms. I called again, this
time demanding my rate be lowered to the original
23.99, because I never received the terms. They
said they would mail the terms again.
Now, I just received an insulting letter from
them informing me that my request to lower the
interest was denied because I closed the account
too late. The letter went on to say this was all
outlined in the notice they mailed to me in February.
I have yet to receive the notice!! I don't even
think the notice exists. Another family member
has this card, with a closed account, and Providian
never changed his rate. I feel singled out. Is
it legal for them to change the terms without
any notice?? What are my options to fight this??
If they are in violation of a law, who can I report
this to (I live in Las Vegas)?? Please help!!
--Claudette
Claudette,
Thanks for writing!
What has happened to you is has become very common.
I have also been receiving more and more notices
with changes in terms.
The deal is that you can decline to accept some
of these term changes and it won't affect your
account. For example, I have received many term
changes regarding arbitration. If you don't decline
the terms then you give up your right to bring
them to court under certain conditions. For more
on that read my article, Giving Up Your Rights--Without
Knowing It!
However, if you decline other changes, for example
rate changes, then the bank will close your account
and you'll have to repay under your original terms.
Of course, you would have had to reply by their
arbitrary deadline. To see the legal details you'll
need to look at the original terms from your account
agreement with Providian.
I also have a Providian credit card and in my
10/5/1998 Account Agreement it states: "CHANGES.
After we provide you any notice required by law,
we may change any part of this Agreement and add
or remove requirements. If a change is made to
the Finance Charges section of this Agreement,
the new finance charge calculation will apply
to your entire Account balance from the effective
date of the change. Changes will apply to balances
that include items posted to your Account before
the date of the change and will apply whether
or not you continue to use the Account."
The way I'm reading that is that they can basically
do what they want. I guess the only argument you
can make is that they have not yet "provided
you" with a notice. If you want to bust chops
you could try calling and asking them for proof
that they mailed it because you have yet to receive
the notice. Then make them send it to you by signature
delivery like FedEx or Express Mail. Tell them
that they have not yet "provided the notice
required by law" and they cannot make any
changes until they do provide that notice.
If the rep or supervisor cannot help then ask
for "an officer of the bank."
You need to punish them! Teach them a lesson!
You already closed the account but that's not
enough! You must get a better rate, and let's
face it, 23.99% is a crazy-high rate!
Apply for a new credit card and transfer the balance
from that Providian card. Do it right away!
Check out my article, Getting better, cheaper
credit--right now! and apply for a new credit
card. Be sure to do a balance transfer from that
high rate when you do the application. This will
get rid of that high rate as well as increasing
your chances of getting approved.
Lastly, you can make a complaint to:
1) The Office of the Controller of the Currency
(OCC), 1-800-613-6743
2) The Federal Trade Commission
3) The Better Business Bureau
Good luck and please let me know what happens!
Regards, Scott
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