Robbery by friendly credit card company

benhasajeep · Dec 29, 2006

I have had a Providian credit card for over 8 years now. They were recently bought out by Washington Mutual. I just got my Dec bill. The interest rate went up 12.6%!! :thumbdown: I have never been late or overlimit on the account. And in the last couple years my credit score has gone up 80 points (it was not low to begin with either!). There is no reason for the increase other than they are greedy (Washington Mutual)!!

I had the money to pay it off, but I am buying a house and need it for the down and closing costs. What a rip off. What I have left from the house is going to pay it off. New furniture and what not is going to have to wait! Of course the lady politely said a notice was sent in the mail to notify people of the terms. ARRRRRGGGGHHHH!!!

ferny · Dec 30, 2006

Phone them up and complain. State you're changing to someone else. You'd be amazed at how far companies can bend to keep your custom.

benhasajeep · Dec 30, 2006

Actually, they didn't budge at all. I told them to close the account to new purchases and I would pay it off as soon as I could. They didn't say a word. Basically I think they are paying for the purchase of Providian by increasing the interest rate. Probably knowing full well that half of the customers can't pay the card off that quickly. Even with the new house payment and still paying rent at the same time at current house, I can have mine paid off in about 6 months. Just have to skip on purchases for new house.

Alison · Dec 30, 2006

Yep. Credit card companies are pure evil. The house purchases will alway be there and you'll save a ton in interest by paying it off now anyway

Torus34 · Dec 31, 2006

At one time, before the credit card companies assisted politicians with their re-election funding, there were usury laws.

Mitica100 · Jan 1, 2007

Ben, shop around for credit cards with low interest and just close the WaMu account. I'm shocked that they didn't offer you any lower interest when you complained. I did the same thing with AmEx and they offered me a pretty big drop in interest rates. However, I moved to another credit card which was offering something like 6.9% for balance transfers (the USAA Mastercard). Maybe you just need to talk to a different person at WaMu?

The_Traveler · Jan 1, 2007

Agree with prior poster. As I remember am constantly offered generous or no interest for balance transfer. Try United Visa, BankAmerica or CapitalOne or even better look at this info site.
http://www.bankrate.com/brm/news/cc/20010312a.asp

Torus34 · Jan 1, 2007

"Some men will rob you with a 6-gun, others with a fountain pen."

benhasajeep · Jan 2, 2007

I would shop for a new card but in the process of buying a house and although financing is approved I dont want to have a buch of credit applications on the report until the house deal is closed.