Huh.

[rivka]

I paid my credit card bill today, and in with the bill was a slip of paper saying that my APR would be raised from 12.99% to 17.98% "based in part on information obtained from the Equifax consumer reporting agency." I was shocked. I've never had a late payment on this card, and I don't even use my other card. I haven't had any trouble with my car loan payments. I don't know why or how my credit rating would have changed.

So I called the company, MBNA America. I told the woman who answered the phone that I was surprised to have my interest rate changed because I didn't think I had ever had problems with the card. "I don't think you have either," she said. She looked at my record for a moment. Then she explained that from time to time they review their accounts to make sure that everyone with the same circumstances is being charged the same rate - "but given your longevity as a customer and your payment history, this change will not go into effect for you." "You mean you're canceling the increase?" "Yes, and we'll also give you a 3.7% rate on new balance transfers and cash advances through April." "Oh. Um, thanks."

I have no idea what that was about. If there is some sort of new problem with my credit, why would a mild inquiry on my part produce an immediate drop in the interest rate? I mean, I didn't even ask her to lower it. (I would have, of course, if she hadn't offered.)

Part of me is wondering if their game plan was based on hoping I wouldn't notice, or wouldn't question it. I already think this company is kind of sleazy based on their relentless push to have me make cash advances. They keep sending me "checks" - printed to look exactly like real checks, imprinted with my name and address and a bank name and so forth - which are, of course, linked to my credit rather than my checking account. The accompanying ad copy assures me that if I buy something I can't afford using one of their "checks," no one will have to know that I'm using credit to make the purchase. I always enjoy vigorously tearing those up.

Sheesh. In the time between opening the bill and talking to the woman at MBNA, I had time to get myself thoroughly upset. Not at the extra interest - I don't carry much of a balance and I'm working at paying the card off entirely, so the cash difference is negligible. It's the idea of my credit rating collapsing that gives me the shakes.

Comments

[(Anonymous)]

Just info: you can get a copy of your credit rating from Equifax anytime. In fact it's a good idea to get it every couple of years, because mistakes do happen: sometimes people with similar names' info goes into yours or something old doesn't come off or even a company you're dealing with makes a mistake in the information that's sent to them. A lot of credit reporting is shaky - either too automated, or too poorly paid data entry staff and not enough checking.

That's not to scare you. Usually they're really good about working with you to ensure your report accurately reflects your credit history - that's their business after all. It's just one of those things like bank statements that people _should_ periodically review as part of their financial planning.

[porcinea.livejournal.com]

MBNA specializes in customers with shaky credit. Over-extended but well-funded. Middle-class credit weenies. Ahem. No personal experience here, mind you, nosirreebob. <whistle, stare at ceiling>

Sleazy marketing tactics their specialty. Customers like that tend to not be paying much attention to their statements (too stressful to look at them closely), and are easy to screw. Like the incoming checks scam, as you've already noted. Even if you tell them not to send anymore, you'll still get them.

I'd suggest shopping around for a more ethical credit card company. If I were less cynical.

[rivka.livejournal.com]

MBNA specializes in customers with shaky credit. Over-extended but well-funded. Middle-class credit weenies. Ahem. No personal experience here, mind you, nosirreebob.

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<i>MBNA specializes in customers with shaky credit. Over-extended but well-funded. Middle-class credit weenies. Ahem. No personal experience here, mind you, nosirreebob. <whistle, stare at ceiling></i>

Yeah. I actually only applied for their credit card in the first place because they were giving out free Cal Ripken bobblehead dolls.

[elusis.livejournal.com]

Hm, makes me nervous that MBNA is my primary credit card these days (I consolidated everything else onto there because the rate was the best). Guess I'd better have a close look at my latest statement. I always review it to make sure there are no charges I don't recognize, but sometimes I toss the million other flyers they include without reading them.

My credit did take a hit last year when the boi was late paying the mortgage after I moved away from Syracuse. [grumble]

[xiphias.livejournal.com]

Credit card stuff is intensely negotiable. That's what I get from watching Lis ask for, and get, all sorts of stuff just by asking for it.

[kightp.livejournal.com]

*nod* All I had to do with one account was call their toll-free number and mention that I was planning to switch to a lower-interest card that would let me pay off my balance with them, and I was instantly offered a better rate than the one I'd quoted (which I accepted) and an increased credit limit (which I declined).

Phone companies are similar - my sister managed to sweet-talk them into an incredibly good international long-distance plan (one they don't advertise) by calling and threatening to switch carriers.

It's annoying that the current corporate model of "fair consumer practices" seems to be "charge them whatever you can get away with, but be ready to adjust it downward the second they complain."

[supergee.livejournal.com]

My cynicism is fed by this sort of thing, and by phone account switching and by all the many other businesses that require vigilance in dealing with them. In a brief period of time nellorat wrote a story for a women's magazine that paid her well but dumbed her story down about five grades, and an article for a scholarly publisher that paid in copies but had her work respectfully edited by an expert. Both originally sent her an all-rights contract that would allow her to admit she had written the work, but not much else, and when questioned, said, "Oh did we send you that silly old contract by mistake. We meant to send you this first serial rights contract instead."

[mactavish.livejournal.com]

I'd bet dollars to doughnuts they were just hoping you wouldn't notice, and offered you the lower rate to keep you from getting bent out of shape.

It reminds me a little of the time I had a work-related back injury, and rather than pay my monthly payments or medical bills, the insurance company challenged it in court. It took four years for me to get $4000 total, after 6 months of missed work and lots of medical treatment. Later, I met an employee of that company at a party. She told me that this particular company routinely took about a third of their cases to court. It was cost effective because so many people would just drop their claims. Ostensibly (she said) it was to rule out fraud, but the cases were chosen arbitrarily, and the intent was to weed out the people who wouldn't bother fighting for the money.

[hobbitbabe.livejournal.com]

I think I read a John Grisham story about that.