Rate-jacking ends on February 22nd, according to representatives from debt settlement organization Consumer Recovery Network. "Rate-jacking" often refers to the universal default clauses in credit card agreements, triggering sudden and unexpected hikes in interest rates when consumers miss payments or exceed credit limits on unrelated accounts. In the run up to the full implementation of the Credit CARD Act, "rate-jacking" also included unprecedented changes to fee structures for consumers with no defaults on any other their accounts.
Lawmakers set February 22nd as the deadline for lenders to implement restrictions on changes to credit card terms and conditions, essentially eliminating rate-jacking. To celebrate CRN has started soliciting the very best rate-jacking stories from consumers for publication on its website. A panel of judges, including CardRatings.com founder Curtis Arnold, will select a winning story from all entries. The winning author will receive a two-year membership to CRN's information, education, and debt negotiation services. Full contest details have been posted on CRN's website.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.