Change in APR with no notice

[shady935]

What is the name of your state? CA

I've had my Discover card for close to two years and have been paying on time every time. It's close to max at $7,200 ($7,500 limit) and I just now noticed the APR has changed from 12% to 22% making my original interest charges go from roughly $75/month to $120/month give or take. I've got a baby on the way so making a $150/month payment isn't really going to help knock down the balance like it was before.

I called Discover and asked what changed my APR in which they replied my credit score has fallen and I could have opted out in April by closing the account (the route I would have chosen since it would make me stop charging anyways). I asked if the opt-out form came in with a monthly statement but she said it came separately. I asked if I could still opt-out, and was told NO, they would see what rate was available in 6 months when they rechack my score.

I did NOT get anything in the mail from Discover and the lady on the phone said legally all they had to do was send it out. Am I screwed? TIA.

 

[JETX]

"I did NOT get anything in the mail from Discover and the lady on the phone said legally all they had to do was send it out. Am I screwed?"
*** Pretty much, yep. If pressed, they can show that the notice was sent to you. You however, cannot 'prove' that you never received it. And that is all that matters.

If you don't like their interest rate, get another card with a lower rate and transfer the balance.

 

[glennh73]

Yeah i had MBNA do the same thing to me a year or so ago. They never sent me anything either. I just happen to check out my account online and seen the APR go from 12.9 to 19.9 and they said it was cause my credit rating went low and that i have a charge off.

It sucks..

 

[HomeGuru]

If you guys read the fine print on the paperwork when you first got the cards, you would see that the APR increase was already agreed to by you.

 

[Ladynred]

Since you're close to your limit, your credit utilization is high and that WILL drop your scores. If that is true of other cards you have, then you're really in for a score drop. If you have ANY lates with ANY card, creditors can and will rate-jack you and they can and will drop your credit limits. You need to watch the credit limit drop, if they drop it too close to what you owe, you'll end up over-limit and they'll start charging you out the wazoo for that -- then is a rollercoaster ride from there with all the rest.

 

[shady935]

Thanks for all the valuable advice guys/gals. I've just finished off paying off my car and will be paying off a huge chunk off the Discover soon. Thanks again.