Julia said Bank of America hiked her interest rate then placated her for months, promising it would eventually lower it to its previous level, only to turn around and say she was misinformed and would be stuck with the higher interest rate. [More]
William got an email from Vonage yesterday telling him they’re raising his bill starting in February.
If you have a Citigroup-issued credit card and you haven’t had a rate increase over the last two years, expect to be notified of a 2-3% rate increase on your November statement. Congratulations! You’re going to help Citigroup offset its losses in the global credit card division, whether you were directly part of those losses or not. As the New York Times points out, by doing this Citigroup is breaking the promise they made to Congress in 2007 that they would not arbitrarily raise rates on accounts—which may be why they’re offering a fairly lenient opt-out policy.
The similar price increases, coming at similar times, Kohl said, “is hardly consistent with the vigorous price competition we hope to see in a competitive marketplace.”
Liveblogging The Senate Permanent Subcommittee On Investigations Hearing On Arbitrary Credit Card Rate Increases
Today at 9:30 a.m., Senator Carl Levin (D-MI) will continue his investigation into the unfair and deceptive practices of the credit card industry. Today’s topic: arbitrary rate increases for cardholders in good standing. The hearing picks up where Senator Levin left off in March, when he questioned the use of excessive fees, interest charges, and the abuse of grace periods.