Who Could Be Surprised?
And, by the way, what would regulators say about this?
When John Dykstra got his September credit card bill from Advanta, a small-business card issuer, he was shocked: Dykstra says he has a good credit score and has never missed a payment, but his interest rate had jumped from 7.99% to 26%.He was even more shocked by the explanation: A brochure in the mail told him he needed to be aware of the "continually changing business environment."
He's not alone. Card issuers from Bank of America to Capital One are using the economic crisis as a reason to raise rates. According to Consumer Action's 2008 survey of card companies, Bank of America, Citi, and Capital One have recently said that "market conditions" could cause them to increase APR's.
Posted by PSoTD on
Friday September 26, 2008 at 3:02pm |
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