Expert: Timmy Chou - 1/7/2009

Question
I recently received credit for a dental implant from Chase. I was drugged at the time so the details are a bit sketchy. Within 3 calendar weeks of me signing up they were calling me telling me I was delinquent. I paid within 2 days of the phone call. I also asked to set up auto pay. The next time I called I was informed that I now have a 24% interest rate because of my previous late payment. Is it wrong for me to feel taken advantage of? By the way, I have a 750 credit score, plenty of cash in the bank and have never missed a payment on anything.

Answer
Thank you for your question!

As I always note to questioners, mediators act as neutral third parties to disputes and never "get involved" in judging the merits of conflict, but merely use special techniques to help the parties decide how to negotiate their own settlement.

I am not a lawyer and cannot give you legal advice, but I can respond to your question from my business consulting experience.

You are certainly justified in feeling bulldozed, however this is the landscape of consumer credit these days, with so many traps and pitfalls.  Once you stumble in inadvertently it is virtually impossible to get out.

Usually it is very difficult to negotiate with these companies as they have no incentive to cut you any slack, and all the power in the contract.

My advice would be to try and pay this off as quickly as possible, or apply for a no-interest credit card and pay it off with a balance transfer, and then just cancel your credit relationship.

Good luck!