Can Late Payments Result in Raised APR?
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Posted: Tue Sep 21, 2004 2:54 pm
Post subject: Can Late Payments Result in Raised APR?
Amy
Date: 3/18/2001 12:33 am CDT
Does anyone have or had a credit card that after two late payments the apr changed from 4.9%to 23.9%. This happened to me, however I had the credit card for over 9 years and I know I was not late. They will not decrease the apr. even after writing to the ceo. I am going to write to the Better Bus. B. and the Attorney General. Any other suggestions?
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Posted: Tue Sep 21, 2004 3:08 pm
Post subject: Can Late Payments Result in Raised APR?
Anon
Date: 3/18/2001 2:37 pm CDT
You stated if anyone had increase in APR after late 2 late payments and the you said you were never late. So were you actually late or not I am confused? If you were never late then I would fight them about this however if you were late they have the right to jack up your rates, it is in your terms that you received when you originally received the card. Also some banks will jack your rates up if you are late with OTHERS creditors not even them, fair no but that's they way the do things.
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Posted: Tue Sep 21, 2004 3:14 pm
Post subject: Can Late Payments Result in Raised APR?
Eugene
Date: 3/18/2001 11:16 pm CDT
Does anyone have or had a credit card that after two late payments the apr changed from 4.9%to 23.9%.
Very often APR can change after even one late payment (promotional period), or even for no particular reason (the rest of the time).
4.9% sounds like you have a promo APR going. My Citibank agreement said that the promo APR can go up if at least one payment is received late, either by Citibank, or by any other creditor, or if you otherwise violate the card agreement.
Here's what you should do (skip the steps you have already done).
Check out your card agreement, look for reasons why APR can go higher.
Call Citibank and find out what the reason is, when and to who was the late payment they are referring to, and if it's not to themselves, which credit bureau provided them with the report. Ask to send you the letter explaining the reasons why your APR was raised. If they ask, tell them you need the letter to get your report for free.
If they give you a reason that is not among the possible reasons for raising your APR, tell them that.
If it's another creditor they refer to, order your credit report from that CRA.
If they claim you paid late to Citibank, look at your statements and see if the payment posted on or before the due date mentioned on the previous statement.
If it turns out they did not violate the agreement, suck it up, learn your lesson and move on (to another bank, if you like). If they did, it's time to do some creative writing (to their correspondence department, not to the CEO).
Make the copies of all documents that proove their violation (card agreement, statements [both past and present showing the higher APR], credit report, their own letter). Highlight the relevant information (promo APR clause, due date and payment date, "no late payments" in the report etc.) Explain the problem in the letter. Say that they are violating the card agreement, and you want the APR lowered back to 4.9% and all the extra interest charges credited back to your account.
Avoid any emotions, concentrate only on facts pertaining to the problem (do not make it longer than one or two pages). Word it clearly and politely, thank them for their help at the end, but do not forget to mention that even though you are willing to avoid bringing this fact to the attention of the Office of the Comptroller of the Currency, you would if you find Citibank not helpful in correcting the mistake.
Send the letter certified mail, return receipt requested, and sit tight for 45 days. Then re-write the same letter if needed, mentioning that you have not received a reply after the first one, and that you are sending a copy of this one to the Office of the Comptroller of the Currency. (Attach a copy of the return receipt to both Citibank and the OCC).
That's what I call kicking butt!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
Posted: Tue Sep 21, 2004 2:54 pm
Post subject: Can Late Payments Result in Raised APR?
Amy
Date: 3/18/2001 12:33 am CDT
Does anyone have or had a credit card that after two late payments the apr changed from 4.9%to 23.9%. This happened to me, however I had the credit card for over 9 years and I know I was not late. They will not decrease the apr. even after writing to the ceo. I am going to write to the Better Bus. B. and the Attorney General. Any other suggestions?
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
archive
Posted: Tue Sep 21, 2004 3:08 pm
Post subject: Can Late Payments Result in Raised APR?
Anon
Date: 3/18/2001 2:37 pm CDT
You stated if anyone had increase in APR after late 2 late payments and the you said you were never late. So were you actually late or not I am confused? If you were never late then I would fight them about this however if you were late they have the right to jack up your rates, it is in your terms that you received when you originally received the card. Also some banks will jack your rates up if you are late with OTHERS creditors not even them, fair no but that's they way the do things.
archive
Posted: Tue Sep 21, 2004 3:14 pm
Post subject: Can Late Payments Result in Raised APR?
Eugene
Date: 3/18/2001 11:16 pm CDT
Does anyone have or had a credit card that after two late payments the apr changed from 4.9%to 23.9%.
Very often APR can change after even one late payment (promotional period), or even for no particular reason (the rest of the time).
4.9% sounds like you have a promo APR going. My Citibank agreement said that the promo APR can go up if at least one payment is received late, either by Citibank, or by any other creditor, or if you otherwise violate the card agreement.
Here's what you should do (skip the steps you have already done).
Check out your card agreement, look for reasons why APR can go higher.
Call Citibank and find out what the reason is, when and to who was the late payment they are referring to, and if it's not to themselves, which credit bureau provided them with the report. Ask to send you the letter explaining the reasons why your APR was raised. If they ask, tell them you need the letter to get your report for free.
If they give you a reason that is not among the possible reasons for raising your APR, tell them that.
If it's another creditor they refer to, order your credit report from that CRA.
If they claim you paid late to Citibank, look at your statements and see if the payment posted on or before the due date mentioned on the previous statement.
If it turns out they did not violate the agreement, suck it up, learn your lesson and move on (to another bank, if you like). If they did, it's time to do some creative writing (to their correspondence department, not to the CEO).
Make the copies of all documents that proove their violation (card agreement, statements [both past and present showing the higher APR], credit report, their own letter). Highlight the relevant information (promo APR clause, due date and payment date, "no late payments" in the report etc.) Explain the problem in the letter. Say that they are violating the card agreement, and you want the APR lowered back to 4.9% and all the extra interest charges credited back to your account.
Avoid any emotions, concentrate only on facts pertaining to the problem (do not make it longer than one or two pages). Word it clearly and politely, thank them for their help at the end, but do not forget to mention that even though you are willing to avoid bringing this fact to the attention of the Office of the Comptroller of the Currency, you would if you find Citibank not helpful in correcting the mistake.
Send the letter certified mail, return receipt requested, and sit tight for 45 days. Then re-write the same letter if needed, mentioning that you have not received a reply after the first one, and that you are sending a copy of this one to the Office of the Comptroller of the Currency. (Attach a copy of the return receipt to both Citibank and the OCC).
That's what I call kicking butt!
CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!
posted by CardRatings.com at 11:25 AM
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