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is it legal for cc co to raise my interest rate w/o notifying me? (BANKRUPTCY & CONSUMER CREDIT)

Wed, 30 Apr 2003 23:17:00 GMT

What is the name of your state? NM
My credit card company, Fleet, has raised my interest rate twice without notification. The first time was when I closed the account. I closed the account because it was an account with no annual fee. Then without notification they started charging me an annual fee. On the next statement after closing the account my interest rate went from 9.9 to 14.9. When I called to inquire they said they had sent me a letter saying they had reviewed my credit rating and saw fit to adjust the interest rate. I never received a letter. Then last month I transferred part of the balance to a new credit card that doesn't charge interest for a year. Lo & behold, on my next statement from Fleet my interest rate suddenly shot to 24.99%. I called again to find out why and they said they reviewed my credit again in February and sent me a letter to notify me of the "adjustment" to my interest rate. I never received any letter. I haven't been late on the payments, and my credit rating is excellent. I suspect they raised the rate simply because of the large payment they received from the balance transfer. Is this legal? By the way, there was a class action suit against Fleet for these very reasons, and Fleet lost. Any insights as to what to do next? Thanks.

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  • Fri, 02 May 2003 11:03:00 GMT(1)
  • In reply to kevinss--I got my rate reduced back to 14.61% by calling and being persistent that my credit rating did not justify the increase to 25%. I demanded specific answers from them and they put me on hold and came back saying "they had room to work with my interest rate." Still no specific reason as to why they raised it. I tried to get them to adjust my interest rate for the 25% statement, so far no luck but I am not through. I am calling again to lodge a formal complaint. By the way if there is anyone else out there being screwed by Fleet, the attorneys who handled (and won) the class action lawsuit against them are as follows:
    Michael D. Donovan, Esq.
    Donovan Searles LLC
    1845 Walnut St., Suite 1100
    Philadelphia, PA 19103
    Andrew S. Kierstead, Esq.
    Law Office of Andrew Kierstead
    1100 S.W. Fifth Ave., Suite 1100
    Portland, OR 97204
    I got this info from a notice mailed to me before the settlement. I am planning on contacting both offices. Let's cut down the Evil Empire!
  • Thu, 01 May 2003 01:18:00 GMT(2)
  • If you know about the lawsuit against Fleet, you're ahead of the game. Not sure what advice you want
    Yes, it's legal for them to raise your interest rate for any reason at any time. As far as adding annual fees, it's probably allowed for somewhere in the contract you signed when you got the card.
    If you know of a lawsuit for this type of action, go for it. If you have the name of the lawfirm that has it (or a link) please send that along. Might be helpful for others to see.
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