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Credit Card Industry Informative - Interesting Info on Credit Card Default Rates

Review by chemman on 2008-07-24
I just read an article on MSN that discusses the credit card default rate issue, along with the shady practice of "universal default" that a lot of companies are using nowadays. Most of the info in the article is not really anything new (especially to most my3cents members, who have probably seen thousands of these complaints) but one of the most useful pieces if info in the article was the following:

"Few credit card companies give consumers the right to say “no” to a rate increase. But five of the lenders Consumer Action surveyed said customers could reject a change in terms — without paying off the balance in full — if they contacted customer service within a specific time period. These issuers are: Capital One, Chase, Citi, Town North Bank, and US Bank."

If I was looking for a new credit card I would definitely want to consider one of those banks, so I just thought I'd pass along the info to hopefully help someone out looking for a new card.

You can read the full article here by Herb Weisbaum of MSNBC
Comments:6 Replies - Latest reply on 2008-07-24
Posted by Anonymous on 2008-07-24:
Excellent info Chemman!
Posted by NickL11354 on 2008-07-24:
Don't charge it if you can't pay it. The terms are clearly spelled out when you apply for the account and then when you get the card. By using the card, you accept these terms. Don't agree with them, don't buy what you can't afford.
Posted by Anonymous on 2008-07-24:
Good stuff Chemman, couple of items I never paid attention to, thanks.
Posted by Anonymous on 2008-07-24:
I'll agree with lois here.
Posted by Anonymous on 2008-07-24:
Thanks for bringing this to our attention.

VH!
Posted by Ponie on 2008-07-24:
Thanks for this posting, Chemman. Seeing all the complaints about credit card interest rates on My3C, I think a lot of people need this reminder. However, I didn't see anything in the article I didn't know previously. Every once in a while, I receive a notice in my CC statements of an increase in interest rates. Also stated is if I 'don't agree with this change,' I should discontinue using the card and if I keep using the card it shows that I 'agree with the change.' Thankfully, I haven't been affected because I always pay my statements in full when received but of course that could change.

Good post.

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