Credit Card APR Increase
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Posted by An
(220.127.116.11) on November 07, 2003 at 13:22:03:
I've had this a credit card for over three or four years. When I first opened the account the APR was set at 16.99%. Overtime it fluctuated but settled at 14.99%. Then I started using it heavily and accummulated a balance and started paying it off with just my minimum payment. I never missed a payment and always payed weeks in advance. Then suddenly I looked at my APR for this card and noticed it jumped to 24.98%. I called the MBNA about this and they told me that they are allowed to raise my APR if they felt like it even though I hadn't missed a payment because they felt that I wasn't paying off my bills fast enough. I no longer have my credit card agreement with me but I used to remember it saying that they can only raise your APR if you miss a payment. It does say somewhere that they have the right to raise your APR but it doesn't disclose the reason why.
Also I noticed that the same card I carry they offer to new customers has a standard rate of 11.99%. Since mine is an old card it was given a rate of 14.99%. Am I entitled to this new APR rate even though I carry a balance? Can they just increase my rate to 24.98% even though I never missed a payment? Thanks.
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