Opting Out
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Posted by Feel So Stupid
(158.114.92.203) on August 05, 2002 at 12:52:48:
Would like to know if anyone else has experienced this? In Dec 1999, Shell MasterCard (from Chase)notified me that they were planning an interest rate increase and that if I didn't wish to have to live with the new rate I needed to let them know I didn't accept the new rate (and basically cancel the card). This coincided with a late fee charge (the mail missed them by 2 days). I called and complained about the late fee charge (I'd NEVER been late on any payments to them before this - etc) and told them I didn't accept their new terms and to close the account. I would continue to pay off the account under the new terms. I duly got a form letter from them acknowledging that the account had been closed.
Stupid me, I trusted them to honor their requirement to leave the interest rate alone. So, I didn't pay much attention to the bills over the years other than to make the payments (all before they were due). However this past weekend in reviewing my statements while filing them I noticed that the interest rate had jumped 5%! Now I wondered how this could happen on an account that had been CLOSED for 3 years. Made the phone call to customer service and was told that even though I closed the account in 1999, I did not 'OPT OUT' of the new and even more variable interest rates that could be charged on the account. Their records show that I canceled my card because of the (1 and only 1) late fee charge. Their recrods show that I hadn't 'OPTED OUT' therefore they were entitled to change my rate at any time (and I really have no recourse as I no longer have an account to close with them . . .). So I checked my past statements and sure enough, Chase has moved my interest rate up and down (mostly up) ever since the account was closed. I never noticed because it was always just one or two percent from where the rate was before. However, this time (obviously they made a major mistake and lowered the rate to 14% in January of 2002)the change in rate was VERY noticable (14% to 20%). I have written a very annoyed letter to Shell/Chase and am waiting for the results. If they continue with their rate gouging, I'll begin taking steps to file a grievance against them. In the meantime, anyone else experience this? Other cards I've cancelled for excessive interest rates have not done this (I went back and checked all of them this time). Thanks.
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