August 25, 2009

Bye Bye Universal Default

Filed under: Universal Default

Hi Paul,

If I short sell my house will it effect my current credit cards. I heard that if I short sale and get a negative mark on my credit report, my current credit card creditors can raise my interest rate and or decrease my line of credit.

Mary (more…)

April 8, 2009

Bank Robbery

I have had a BOA credit card with a $20,500 limit for about 6 yrs.  Balance of $5,000 with interest rate of 7.9%.  Also Capital One for 10 yrs with 4.9%, limit of $2,000 and balance of $300. 

In the past week, BOA stated the interest rate would be changing to prime plus – get this – 19% and Capital One to prime pluse 15%.  No late payments on ANYTHING. 

What would cause this?  Do I need to check my credit report??? 

TIA – Gayle (more…)

January 28, 2008

Fair Credit Billing Act Revisited

Thank you so much for your website!! 

I use this blog for not only myself, but also for my husband, my father (he just purchased a new home thanks to your tips!!) and now I have a question from my Mother. 

She has been with a certian credit card company for 10+ years.  About 6 months ago she had mailed her payment to this CC Company and it got posted 10 days later than the due date.  They ended up reporting this as a 30day late on her credit report. 

Since then, they have raised her interest rate to 24.99% because of the one late payment.  When this CC Co raised her rate, the rates on all her other CC went up to 24.99% as well.

She also had swiched jobs and is making less money and has ended up greatly in debt. ($20,000 worth) 

Her min payment on 3 credit cards is $300.00each so she is paying $900.00 a month in credit card debt. 

My mother is thinking about filling for BK even though her FICO is above 750. 

She disputed the late payment, and they will not delete it. 

So my question is how can she get the rates dropped on her cc and pay it off to avoid BK?

Thanks  Paul you’re awesome!!

Amanda (more…)

December 13, 2007

Hearing on Unfair Credit Card Practices

Millard Glasshof of Milwaukee, Wisconsin, is a senior citizen living on a fixed income.  For years he faithfully made a $119 monthly payment to Chase to pay off a credit card debt that is now about $4,800.  In December 2006, a year ago, out of the blue, Chase decided to hike his interest rate, from 15% where it had been for years, to 17% and then in February to 27%.

Why?  Chase had decided to conduct an automated review of all it closed credit card accounts where balances were being paid off.  Because that automated review found that Mr. Glasshof’s FICO credit score had dropped, it hiked his rate.  Think about that.  His account was closed.  He made no new purchases.  All he did for years was send in his payments like clockwork.  But his interest rate was automatically hiked from 15% to 27%.  Not only that, to rub salt in the wound, the new 27% rate was applied retroactively to his existing credit card debt, and his finance charges skyrocketed.

Under the 27% interest rate, out of his $119 monthly payments to Chase, about $114 went to pay for finance charges and only $5 a month went to pay down his principal debt. 

Opening Statement of Senator Carl Levin
Hearing on Unfair Credit Card Practices:
Unfair Interest Rate Increases
December 4, 2007

December 4, 2007

Universal Default: BOA & Discover

Credit Score Drops, Your Interest Rate Pops!!!Money.cnn.com reports today:

“Two of the nation’s top five credit card companies automatically increase cardholder interest rates when their customers’ credit scores drop, according to an investigation that will be the subject of a U.S. Senate subcommittee hearing Tuesday. 

According to the report, Bank of America (BAC) Card Services and Discover Financial Services (DFS) monitor credit reports and use “universal default” clauses in customer contracts to justify raising interest rates, even for customers with a good payment history with their companies.” (emphasis added)

And what is Universal Default?

May 7, 2007

Help me… help you. Help me, help you.

All of your Credit Repair, Mortgage, & Stump the Experts (although ‘experts’ is debatable) are in the HELP CENTER.

Read, learn, write, mail, negotiate, write, mail and Raise Your Credit Score!

March 9, 2007

Wesley’s True Credit Card Story

First of all I would like to thank everyone especially my wife and family who have been so supportive the last few years.  And, I would like to reach out to the millions of people who have gone through or are currently going through a similar situation.

My name is Wes Wannemacher, and I come from Lima, Ohio.  I am married and raising a small family.  I wish I could come here and tell you that I’ve always paid my bills on time, but my goal isn’t to convince you that I’m the most responsible adult in the U.S. Despite these and other faults, I am well liked and respected in my community. (more…)

February 23, 2007

Universal Default Me? Universal Default You!

What about bad credit score prevention? As in, avoiding bad credit card types. For example, i recently heard a seminar about improving your credit so you can buy homes and one of the speakers mentioned somethign about different credit card types. The kind that is very very common and will increase your APR and charge overage fees and more if you have issue making payments – they also check your credit score regularly and will increase your APR if the score increases!…and another type that is not so common, but it is out there – the type that doesn’t check your FICO to see if they can increase your APR. Unfortunately, i don’t recall the terminology and was hoping you’d have some insight into this better type of credit card that can be used in helping prevent credit card companies from destroying your credit (well actually you should never be in this position, but life happens).

Stephen (more…)

February 19, 2007

Don’t Be 4 Days Late With Capital One!

“I want to be clear that we do not do any form of “universal default.” This has been our long-standing policy.  We will not reprice a customer if they pay late on another account with us or any other lender, or because their credit score goes down for any reason.”…”There is only one circumstance in which a customer might be subject to default repricing – if they pay us more than 3 days late twice in a 12 month period”.

John Finneran, General Counsel
Capital One Financial Corporation
Testimony before U.S. Senate Committee on Banking, Housing and Urban Affairs
January 25, 2007

Capital One Financial Default Policy     “What’s In Your Wallet?”

February 6, 2007

Credit Card Danger & Rescue

I want to pay down cc but was 30 days late recently on a car payment.  Other than that one 30 day late, I have had no others.  Is there a chance that once I pay down my cc to 40%, the cc company will see that one late and lower my available credit line; thereby defeating my goal of getting all cards below 40%?
 
Thanks, Liz (more…)

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