My bank assigned my credit card an A.P.R. of 27%, and I want them to explain to me 'why'

Yes, you read that correctly - 27%.

This is a Visa Classic Card, through my bank, Wachovia.

I called Wachovia to inquire just why I was assigned such a high A.P.R., and they gave me two reasons: 1) I signed up for Visa Rewards; and 2) there "must be something" on my credit history which would be a factor.

This second "reason" is what's pi$$ing me off. Except for maybe when I was 20 years-old, and I was late by a month paying an American Express balance (of like $50), I have never had any problems with credit cards. I have never had problems making auto loan payments. I have never had any financial red flags, ever. So why, Ms.Wachovia Customer Service, did Wachovia assign me an A.P.R. that amounts to modern-day usury?

"You might want to obtain an Equifax credit report, to check on your credit history. It might provide you with some clues to help you out on that."

Me: "No, Equifax doesn't assign or recommend A.P.R. rates. I would like some kind of Wachovia in-house document or report which justified, in detail, why the bank took whatever information was on the Equifax credit report, and used it to assign an A.P.R. of its choosing."

Her: "Oh, the 'system' makes that determination. We don't have that information."

The bank doesn't have its own information? Like the 'system' picks an A.P.R. at random, then deletes its own history?

How do get my stupid bank to answer this very simple question of mine?

likely has little to do with your personal banking experience.

Did they disclose the APR when they made the offer?

I applied, and the brochure gave some vague indication that the APR would be "anywhere between such-and-such" percentages.

I'd go to my local branch through whom I do my checking/savings banking and talk to them about this.

They need to disclose the APR before you sign anything, and offer a back-out opportunity otherwise.

:eyes:
Seriously, though - get a copy of your credit report, if only for your own peace of mind, because you don't know if someone has gotten a hold of your identity and done God knows what with it. Or there could just be an error on it.

Do you also have a bank account with this bank or just a credit card?

I went through a similar annoying situation applying for a mortgage three years ago. Turns out there was an error on my credit report, so it's worth checking into it. Good luck!

And find out if there's a regulatory office to report them, not that that will do much good with the Bush adm.

You're allowed one free one from all 3 reporting agencies once a year.

There may be something there that is in error that triggered the raise in rates. A fraudulent charge you didn't know about, somebody reporting you were late with any payment (even a couple days can raise your interest rates on EVERYTHING) or even too many people looking at your credit report can cause trouble.

If you can find where the problem is, you have a much better chance of fixing it.

i would take my business elsewhere. they obviously don't need yours:eyes:

If you pay off all your monthly bills and never carry over balances, do not have an annual fee, and are never late with your payments they figure they have to tilt the playing field so that if you ever do carry over a balance, they will recoup the cost of maintaining your account.

How do I know this? I had a different bank do the same thing to me and those were the reasons I was provided.

Or do you have debt on it already? 27% sounds like a default rate, although those may have gone up. A customer service phone person is not the bank though - they really do not know, but they can, if they choose a) take you off the default rate, or b) try for a lower rate. I did the first more than once (not sure how my company felt about it, at least I was not told I was fired for that). In the second case, they are limited by the rates the computer gives them. They have no power over that. You can a) ask for a supervisor who will know more and be able to do more or b) say you are closing your account because (insert competitor) has offered you a better rate and either customer service will be able to match it, or they will send you to the retention department which will be able to give you a better deal. Or, OTOH, they may just pull a plaidder and say 'see ya'. Also, these tips are the way MY bank, where I worked, handled things. Those procedures may have changed, or they may not apply at your bank (YMMV).

financial bills have now made it okay for banks, stores, or any other place that issues credit/credit cards to up the interest rates on their customer's accounts for any reason or for no reason. I've read stories of people who have very good credit, who have always had fairly low interest rates, suddenly finding their rates, as well as their minimum payments, going up with no explanation from the company or bank that raised it.

Welcome to another fine aspect of Bush/Cheney world.

I had a late payment one month because the card company changed the payment address. For a year or so I allowed 5 days for my payment to get to them in the mail. The address was a post office box in the same city I lived.

Then, without drawing attention to it, the payment address was changed to a location on the east coast. This made my payment late and they then had a reason to jack up the interest rate.

I've heard since then that this is a common practice in order to induce the customer into paying late.

with any payment on any Mortgage, or credit card payments. I have a mutual fund with Bank of America included and I have asked my broker to trade that and to start looking for socially conscious funds.

I'm done with corporate bs. It may take me awhile to pay off and arrange things but I'm not putting up with the greed from these corporations anymore. Refuse the card and look elsewhere even if it means changing banks. Then make sure you tell your current bank why you're leaving them.

Stand up to them and refuse to take it.

I had an account with them many, many years ago. I made an error in my checkbook (I am SO not good at math), and my account was overdrawn. As soon as I got paid from my job, I went to my branch to deposit the check and cover the amount I was in the hole, as well as the overdraft fees.

When I got to the teller, she told me that she could not help me, that I had to go speak to the teller supervisor. Okay. So, I go to her desk, and this woman proceed to berate me, in the middle of the bank, in a very loud voice, in front of a ton of customers. I felt so humiliated. I made a freakin' mistake, I came in to straighten my account out and get it back in the black, and this woman treated me as if I had just tried to rob the place!!

I left the bank, and have never set foot in one of their branches again. I did open an account with another bank, and sent a cashier's check to BofA to cover the deficit and also sent a letter telling them to immediately close my account, and exactly WHY I wanted them to do that.

Lenders can charge whatever they want, and change rates without advance notice. They count on most of us just shutting up and paying. People who complain enough might get extra charges retracted, if the lender wants to keep their business, but such exceptions are never documented. They will never tell you why, and you won't get a clear answer in writing, other than "policy."

just for your own peace of mind. But they probably didn't really have a reason.

My x screwed my credit rating up, so I've spent the last 2 years fighting credit card companies. They're neck and neck with the health insurance industry for sheer evil (and that's pronounced eeeeee ville in this case).

do you want to do business with a bank that is trying to screw you?

Seriously, now with our single number credit system if there is a problem ANYWHERE in your financial
reports... Late payment on a water bill, for instance. They will all JACK-UP-YOUR-RATES.

The CCs are looking for ANY excuse to change rates. I've heard that not having the correct debt-to-income
ratio or having too many inquiries on your credit status can activate a rate increase.

It's 21st century robbery is what it is.

If they ask why you want to cancel, tell them it is because you are pissed at the interest rate.

I know this works; I did it. My credit card company once wrote to me to tell me my rate was going up to 22% or something. I never really knew it was that high to begin with, but I immediately decided that they could fuck right off. I knew I could do better than that. So I called them to cancel my card, they asked why and I told them. They dropped the rate to 12% and it has stuck there ever since.

I've had problems with these people....they are arrogant bastards and the company has become SO big that all of their customers are just a number. Just like Verizon and Comcast ( companies that started out small and then walked over everyone ).