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Recently credit card holders have been complaining of dramatic interest-rate hikes (in one case from 9.9% to 17.9%), fixed interest rates being converted to variable rates, sudden account closures and other changes in terms. Most of them are mystified — they say they pay their bills on time and send more than the minimum monthly payment. Now that card holders are paying attention to credit limits and annual percentage rates. A long with reading any notices that come in the mail, card holders are spotting all changes in terms for the worse looking- especially for any thing they can’t remember , such as making a late payment or exceeding a credit limit. Then getting on the phone and working thier way up the supervisory chain. A computer may have swept your account into a portfolio review, but humans have the capability to override automatic changes.

Recognize that you have the right to reject new terms, but think twice before you do so. If you opt out, your account may be frozen while you pay off your balance under the old terms, and then closed. Closing the account can have repercussions, especially if it is one you’ve had for a long time. Longevity of your credit history accounts for 15% of your credit score. Be aware that balance transfers aren’t what they used to be, credit standards are stricter for 0% offers. Whereas a score of 720 used to suffice, 750 now seems to be the cutoff of CreditCards.com. Terms that used to last 12 months have been cut to six. Times are tougher, say credit-card companies, and a rising tide of delinquencies and defaults leaves little choice but to toughen up on consumers. Fueled by populist anger, lawmakers on Capitol Hill are determined to pass legislation that gives consumers more rights, and President Obama has outlined his support for reform. The House passed a Credit Cardholder’s Bill of Rights on April 30, and the Senate has its own reform bill pending. Despite the powerful banking lobby, legislation could well be signed into law as early as this summer, although implementation of many provisions may be delayed until next year. At a minimum, a new law will likely incorporate Federal Reserve regulations scheduled to take effect in July 2010. It’s a good bet you’ll see an end to arbitrary rate hikes on existing balances, for instance, and issuers will likely need your permission for approving charges that exceed your credit limit, triggering fees. As always until then take Control Of Your Debt, remember waiting for Washington can cost you money.
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