No. of Recommendations: 0
Long post ahead:

Rate increase inconsistent with the original deal seems to be quite common. If done on purpose it is most likely illegal and the credit card company could be sued, but it may be difficult to prove it was not an honest error.

The First American Bank seems to play this game with me for some time. In August they offered me, over a phone, a teasing rate of 2.99% for six months, and I transfered about $11,000.00 from another accout, to my First American account that I already had, but its balance was $0.00. There was no charge on the first statement they send to me, but on the second statement I was being charged 14.99% annually.

I called them immediately, they said nothing can be done right away, but I can request a change of interest. I did, and about ten days later I received a letter refusing to make a change. I called another credit card and asked them to make a transfer. I calculated the transfer so it would pay the First American completely, except the charges. A was lucky to obtain 3.99% from the second card, although for six weeks only, but it gave me some time to look for another lender.

Few days later, after the transfer completed, I called the First American again, explaining to them that I want my account closed, and if they want to receive the amount they charged, they will have to sue me. (One remark about this point: it is my understanding, that your lender can not make a negative report to a credit biuro, if not paying is the result of a disagreement about whether you owe anything. But if you have a disagreement like this, make sure you send a registered letter to the lender explaining the reason you believe that you owe nothing, telephone call is not enough). They were much nicer this time, suddenly it turned out that they are willing to make onother transfer at the old rate. I asked them to cover the charge they made previously first. They did, and I move my loan back to the First American account. The resul for me ? I got six weeks of credit completely free of any interest (they paid back the whole amount, not just the overcharge ), also the time of the teaser rate got extended ( they started counting the time over ).

This would be a very nice ending to this long story. However, just last Saturday, I got my statement. Well, the interest rate is back at 14.99%. I called again, and this time I am sure you could tell even over the phone I was pissed. They said it was their error, the interest rate is already rolled back, and the letter with apologies is alredy in the mail, and I should get it this week. I will see.

This time I really started to think about a class action suit. I also look for another lender, just in case.

Print the post  


UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.