February 10,2009
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Fighting Credit Card Changes, Pt.1
-- Don't take it lying down.With the free-for-all squeeze being put on credit card consumers right now, we need better protection until the new federal regulations take effect in July of 2010. Until then, there are some ways for us consumers to protect ourselves until that harmonic balance is found and implemented. Here are some of the more effective techniques to protect yourself:
Negotiate: We're all in this together. Credit card lenders know they can't afford to lose good customers. So they try things out on the public to see how they're received. Their intent is to not provoke customers but to shore up their own hurting financial situation. If a change works, they stay with it. If they start to lose good customers, they'll back off. You, as a valued credit card customer, are the voice they need to hear. Customers that just pick up and move elsewhere don't help the problem because the lender remains out of touch in regards to why. Call your lender and admonish them when they hurt good customers. Your input will be joined to many others' having the same complaint. Based on the magnitude of the complaint, the most pressing will be addressed and, more importantly to the individuals, they stand a good chance of having a bad change reversed or compromised in their cases. Credit card lenders want to stay in business and don't wish to drive off good customers. If enough people complain, the lender will soon abandon an unsuccessful tactic. It really works.
Scout the territory: Don't be reluctant to close a credit card account. Actually closing it is a last resort, of course, but the lender doesn't know whether you'll play that card or not. Don't be afraid to discuss the possibility. Loyalty must reciprocate. The person you speak with when you call Customer Service is assigned to placate the consumer. They always have playing cards unknown to you. Ask if they have a promo going on that will allow you to open a new account with better terms (you'd be surprised at how much better). From personal experience, I've had major lenders do all the work for me by opening a much better account for me, transferring any debt from the old account, adding the available credit on top of my new account, closing the old account and shooting me a new card in the mail. All with one phone call. Sometimes in the process, they'll discover an additional advantage and call you to ask permission to give you that advantage too. No lie...that simple.