Expert: Crusader - 8/7/2004

Question
I have a Visa card through MBNA.  When I applied for this card I had zero interest for a few months and then a rate of 7.90% afterward.  I transfered balances from other cards and I set up my online banking to pay this automatically the same day every month.  I never missed a payment, was never late and always paid more than the minimum.  I noticed a late fee on my July bill.  When I looked closer at the bill I saw they raised the interest rate to 19.98% in June and had a new minumum payment of over $100.00.  I called and was told that my credit rating changed so they raised the rate.  I was also told there was nobody else I could talk to about this.  Do I have any recourse?   Beside the fact this is more unfair than I can say, there is no way I can afford this, I simply can't pay it.

Answer
Dear Pam,

Unfortunately, all (or most) of the credit card institutions are basically legalized mobs!  Hate to be so blunt, but those are the facts.

My employer went through something very similar as you.  Demand to speak with a supervisor and they will probably get everything worked out for you.  Don't take no for an answer.

If the supervisor gives you one ounce of trouble, inform them you are immediately filing complaints with the Federal Trade Commission, Better Business Bureau, and that you are contacting an attorney in California who specializes in class action lawsuits against credit card companies for this very thing.

Please be sure to contact me again if you need all these resources.  I am happy to assist in any manner!

You can contact me direct, if you want: cruasader@justice.com

Good luck to you!