Is This Legal?

[broken_halo]

What is the name of your state? GA My First USA credit card sold out and became Bank One. Now I know what I have read about Bank One is true. I got my bill this week from Bank One, and saw that they had jacked my interest rate from 9.99% to 29.99%.....YES!! I have never missed a payment with them nor any other credit card I use, and have never been late on any payments to any of them. I immediately called Bank One and asked why this was happening. I was informed that because I was carrying a large balance on ANOTHER credit card, that Bank One felt I was a high risk and jacked my interest. How can this be legal? If I were delinquent on any card or theirs, I could understand...maybe, but for no reason other than I have a high (but paid) balance on another card. Can someone help me? Can I do anything about this

 

[Tigz]

The best advice I can give to you is to pay off (if you can) or transfer your balance to a lower rate card. Then tell them, in writing, what they can do with their card…er, I mean that you are canceling your account.

From what I understand, what they are doing is legal…there were quite a few news stories last year on the subject when the major financial institutions started doing it (sorta had the domino effect, once one started, all the others followed).

I do believe however that they are required to inform you, prior to your receiving your card, that this is the new companies policy. I remember that several of our credit card companies notified us of the policy change on our current cards (luckily none of our rates have changed so far except on one of them…and we cancelled it.) And I know that any financial institution that you do business with is required to inform you of policy changes that can affect your account. (at least, that USED to be the law – if it has changed, I haven’t heard about it – but I miss things from time to time)

You know….I am wondering…If they can increase our interest rates due to our credit rating – even when we have a perfect payment record with them…why can’t we force them to reduce our rates when our credit rating is better? Seems only fair. Perhaps some consumer advocacy group ought to petition lawmakers in Washington.

 

[cmorris]

Yes, it is definately legal. And now Chase has merged with Bank One.

Send a letter through planetfeedback.com. You will receive a call from the corporate office. They may lower your interest rate for you, or give you the option of closing the account (the interest rate goes back down).

However, closing an account is not the best option. You will lose age on your credit reports and increase your utilization. This will cause your credit score to drop.

I recommend either paying in full or balance transferring to another card. If you do not have another card, consider getting another one. Then "sock drawer" Bank One.

 

[boonehead]

Yes usually they inform you that there has been a change in your credit card agreement, and if you do not agree you can close your account and stay at the current rate until paid off which is normally the best way to go. Other cards are constantly trying to get your business with lower rates. So give your business to someone else.Does it really matter who you give your interest money to? The only thing that should matter to you is how much interest you give to them

 

[MamaLuna]

Yeah, you can do what I did and stop paying the thieves! Yeah, I'm being sued but I'll fight these SOB's with everything I've got. AND I've got a very good chance of winning. What they do is WRONG! That they are even allowed to do it is even MORE WRONG!

There is so much information about the truth of credit card companies online. You'd be surprised to know that THEY DIDN'T LOAN YOU A PENNY! Yet you pay them an exhorbant amount of interest and fees on money they never loaned you!

I found this site very interesting, it gives a fictional analogy of the banking system and what is wrong with it.

http://www.relfe.com/plus_5_.html

credit card companies banks The Fed

 

[Ladynred]

The key word there is FICTIONAL !

That whole 'theory' and SCAM that the banks don't loan money and the whole banking and credit system is illegal is just CRAP !! The whole scheme is based on bullcrap and totally WRONG.

 

[MamaLuna]

"Knowledge is Power - use it as you see fit !
You should take your own advice!

The fictional analogy is purely fictional in the sense that it puts the information in laymen terms so that it is better undestood. The story it tells of the banking system is truth and fact.

No one said what they are doing is illegal. It's legal. Doesn't make it right though! What they do should be illegal....preying on consumers that in days past would not be considered credit worthy...changing the cost of an item after you purchase it, because you seem to be a risk---if you were a fricking risk why the hell did they give you a credit card.

Banks DON'T loan money! They give federal reserve notes which are worthless paper backed by nothing more than a promise to pay.

I can recommend some good books for you to read Lady...you can start with The Creature from Jekyll Island.

Research the REAL reason WHY Abraham Lincoln was assasinated, or others for that matter....it all leads back to the banks...the Rothschilds, J.P. Morgan

If you choose to walk through the world with blinders on and refuse to see what is truly happening in America that's fine. But I refuse to and I will shout what I know from the rooftops if it gets a few more people to see clearly.

American people are being forced into debt and bankruptcy....what better way to control people....put them and keep them in debt and fear. ****, our government doesn't have to take away our rights...."we" voluntarily give them up because of fear (Patriot Act!) and "we" believe our government will protect us---HORSE COCKEY!!!!! They're the main reason our country is drowning in debt (ssshhhhh, don't tell anyone..THAT'S THE WAY THEY WANT US TO BE!)

Hopefully you're fully prepared for the next economic crash because it is coming and probably sooner than later.

Okay off my soap box....for now!

 

[Ladynred]

Oh Lordy...

Another great conspiracy. FORCED into debt ?? Were there any credit card company employees putting you in a hammer-lock to force you to use their credit cards ?? I don't think so !!

JP Morgan plotted to kill Abraham Lincoln ?? JPM didn't make his massive fortunes until long after old Abe was shot. JP had family fortunes, true, and he was making his own money, but was hardly the controlling factor in the banking industry when Lincoln was killed. Morgan played a major part in rebuilding after the civil war for cryin' out loud !

Well.. there's no point in arguing. I'm not a conspiracy theory believer. .not in any of them and there are plenty floating around. Maybe the banks engineered JFK's death too, they were in cahoots with Lyndon Johnson maybe

You go ahead .. hide out in Idaho..don't pay your income taxes.. build yourself a home in a cave to shelter you from nuke attacks.. line your walls with aluminum foil to keep "THEM" from spying on you.. and put all your money into your mattress.

 

[caliber]

The truth is incontrovertible, malice may attack it, ignorance may deride it, but in the end; there it is. -Winston Churchill

Federal Reserve Bank of Chicago's publication Modern Money Mechanics(page 7) states:

"Loans are made by crediting the borrower's deposit account, i.e.,by creating additional deposit money."

It's fundamental to understand the money creation process in order to get a grip on the reality of the banking system. The above credit liability from the bank to you (via your deposit) is supported by your deposit. The property in the deposit money changes hands, or passes to the bank and becomes an asset they never had prior. The bank does not possess your deposit, the now own the gift you gave them. Question: What cost did the financial institution assume in issuing you the deposit receipt?

No conspiracy yet! This is legal. However, it is unlawful. Clue: basic contract law.

Yes, no one is forced to take on debt. You are in debt by default. Our currency is interest-bearing, bought with borrowed funds based on a deposit or promise to pay. There's more!

Just keep an open mind and all will fall into place.