TALK ABOUT KICKING DEBTORS WHEN THEY’RE DOWN..CREDIT CARD BANKS ARE USING ANY EXCUSE TO RAISE YOUR INTEREST RATES, EVEN IF YOU ARE CURRENT WITH THEM!
May 31, 2003
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A provision now built into most credit card agreements allows card companies to reset anyone’s interest rate based on the size and status of his other debts. Concerned that consumers have not been sufficiently informed about the practice and that the sharp jumps in rates may be an overreaction, some state and federal legislators are proposing limits.
“Such practices increase the cycle of indebtedness, poison customer relations and spur bankruptcies that hurt borrowers and creditors,” said Rep. Carolyn B. Maloney, D-N.Y.
