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Archive for February, 2009

An APR Rant (sort of)

February 9th, 2009 at 01:47 pm

I got home today and went and got my mail. Interesting notification in there from Cap 1 Credit Card:

"Due to extraordinary changes in the
economic environment, we're reviewing
our existing credit card accounts"

Hmmm this doesn't sound good...

"Having considered these economic
conditions, your account's current
Purchase rate, and the length of
time you've had this rate (7.49%),
we will be increasing your
Purchase rate."

OOhhhkkaayyy....to?

"A variable rate equal to 15.9% as
of 1/28/2009."

Are you kidding me??? They doubled my interest rate??? Why? I have only been late with one payment since I got the card, and that was 1 day late. On top of that, I pay an annual "fee" for the "privilege" of having their card.

So being the rational and calm person I am (a hint of sarcasm here) I called them to politely ask "hey umm why?". My call was anwsered by a nice gentleman, in Argintina, who's english is worse then mine. After about 5 minutes of deciphering what he was trying to tell me, I asked to speak to a supervisor.

A nice lady who spoke much better english answered with this bright, cheery "Hello my name is B***, how may I help you?" So I proceeded to once again ask the question "Why?". She went into her scripted response which i let her go on for about all of 30 seconds when i rudely interrupted her.

Me: "So your company is punishing me for doing the right thing by paying on time and paying over the minimum payment?"

B***: "No sir, due to the extrodinary economic conditions, we....."

Me: "I read the mailing. Ok if you guys are going to be charging me double, how about cancelling the annual fee?"

B***: "This card has an annual fee associated with it, but this is what I can do."

Me: "Okay, what are you willing to do for me?"

B***: "We have been authorized to offer you a 5.9% APR unitil Jan 25th 2010, at which time your percentage rate will adjust to the 15.9% set forth in the mailing."

Me: "But you can't waive the fee right?"

B***: "No sir, we can not waive the fee"

Me: "Okay, give me the 5.9% until January, at which time I will have to decide if I am going to continue to use your card or shop around for another credit company."

B***: "Okay sir, we will set this up for you right now'

Me: "ummm thanks I guess"

Me: "By the way, I hope you don't take this personally (the job) I know you are not in control of what policies they want to change or how the changes will effect your customers, but to me it seems silly to punish a good customer just so the toppers can get their bonuses"

B***: "Sir I completely understand"

Me: "Okay, if that's all taken care of, I hope your day gets better from here. Thanks and bye."

B***: "You have a good day sir, and thank you for using capitol 1, bye."

Has anyone else been notified of the "changes" they are making at cap 1? Or how about other companies? Are they doing the same thing? I would hate to cancel this card, even with the fee, it's the only credit card I have. I have had it for better then 10 years. I don't want to hurt my credit rating but I may have to.