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Subject:  A couple of friendly CC stories... Date:  3/23/2007  10:57 AM
Author:  Stevierayclapton Number:  250476 of 312992

I just closed my Chase Advantage LOC account. I haven't used it since they jacked my rate to 28% three years ago. I had this account for over twenty years. I had never been late or missed a payment. When I talked to the rep, they informed me that my overall credit useage was too high, triggering the rate increase. That was three years ago or so. I BT'd the balance to another account and didn't think about it. Today, I got a bill from them for a $12 "annual fee". I phoned them and they removed the fee. I then closed the account. I have zero money owed to Chase and will never use them again. Their rate increase is an excellent example of predatory practice by the CC industry using the universal default clause.

Here is an even better story. A little over a year ago, I got a letter from MBNA advising me that based on my overall credit useage pattern of their account, that they were lowering my limit from $15k to $12k. Now mind you, I had never been late, missed a payment, or exceeded my credit limit. I kind of shrugged and went ok... After all, the only reason I had the account was because they had let me balance transfer about $12k at a fixed 7.9% or so. I had about $11k on the card and wasn't very concerned about the limit. Three months went by. I got a letter notifying me that my rates were being increased to 28%. I was stunned. I phoned them and said.. "I BT'd this money to you because of the fixed rate!" They explained that my account balance was TOO CLOSE TO MY LIMIT! I explained that the only reason that the account was too close was that they had arbitrarily reduced the credit limit. They didn't care. They refused to budge. I BT'd the balance to another account.

Both of these stories are examples of the flagrant predatory use of Universal Default by CC companies that pervade the industry today.

I thank God that my wife and I have finally come to our senses about credit. In the not too far off future (under a year) we will have zero unsecured debt.
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