October 02, 2009
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"Win / Win" or "No Deal", Pt.3
Cases in point: "Myself/Family/etc. vs. HSBC".I was prompted to write this article when myself and another member of my family received almost identical letters on the same day from HSBC. As far as the reason, about the only thing we have in common is that we both have "GM" credit cards (HSBC), keep low balances and have never been late on a payment nor have we ever committed any infractions to any credit card accounts – HSBC or any other credit card. HSBC justifies their change in credit card terms in the first paragraph by stating "...because accounts with your current interest rate structure, and history of payments in relation to the account balance, are being modified..." Never been late nor charged over 30% of the credit card’s limit. What’s up with that?
Actually the bad vibes began last month when my mother’s credit card limit was reduced from $2,000 all the way down to $300. Ridiculous! Then, we both received similar notes this week with further changes. Here are the latest changes:
O Purchase APR switching from Fixed to Variable. New variable APR = 19.49%;
O Cash APR switching from Fixed to Variable; New variable APR = 24.9%;
O Default APR switching from Fixed to Variable; New variable APR = 30.99%.
Never broken any rules nor posed any risk. Thanks, HSBC of Nevada. Here's another similar credit card testimony from "Ann" who wrote into Michelle Singletary of the Washington Post:
$10,000 in credit-card debt. Always paying it off regularly -- and always on time. Interest rate of 7.15%. Then last month out of nowhere, she is slammed with a hike all the way up to 14.99%. Believing that this must have been some sort of mistake, she called her card issuer immediately. That's when she found out that she had joined the millions of others just like her and she would just have to deal with it. Deal with it, she must. So must we all, it seems. The next article will explain the options and some good advice. Please continue...