Tri-Cities, Wa- You open up your credit card statement and discover your low interest rate has suddenly shot up.
Can they do that? Just arbitrarily triple your monthly payment.
And until new credit card rules take effect in 2010, they will.
Consumer advocates say you should expect credit card companies to exploit these rapidly closing loop holes as much as they can: raising rates, arbitrary service fees, and double cycle billing, common practices that will soon be illegal.
In response, credit card companies say they constantly evaluate the risks and costs of funding credit card loans... and when necessary, make changes to pricing, terms, or credit lines based on borrower risk, market conditions, and the costs of making loans.
It's a right the credit cards have, for now.
Consumer advocates say now more than ever, you need to pay attention to all of the notices from your bank. That's where you'll find out how much that card is costing you.