I have had the same credit card for over six years. I've really liked the company and I haven't had any problems or complaints until now. First of all, know that I pay my bill every month. I think in the six years I've only had three or four late payments, but only one in the last four years. I always pay off more than the minimum balance. Every once in awhile I get a "notice of policy change" in the mail, but they are almost always dealing with increased punishments for late fees, blah blah blah, which don't really affect me.
I got one of these "notice of policy change" envelopes last week. It told me, basically, that since the economy was constantly changing and interest rates have been on the rise for awhile, they were going to more than double my APR--as a policy change. What? Of course, they gave the option that I could "decline these changes and close my account." I can't decline them and keep my account. Is something wrong with this? I could close my account and open a new account with the same company and get 0% APR for a year, but I can't keep my old, good credit account for less than 20% APR.
This seems to be a trend with companies lately. They give no credit to loyal customers. It's always the new customers that get the deals and discounts. Scott and I have seen it with our cell phone service, too. We like the company and have no complaints about the service. We've been with them for more than 4 years. But every so often they come out with great deals for new customers. We called once or twice to see if we could benefit from these deals, but each time we've been told it's only for new customers.
This trend also includes employees. Who's going to be a loyal long-term employee of a company when there is no pension, no long-term benefits, and the company's livelihood depends on such a changing economy that if it doesn't recycle employees, it could collapse?
I like being able to trust. I like being loyal, but it's getting harder to find institutions I can put my faith in. It's just a scary trend. So there is my little soap box.
6 comments:
jeff has really noticed this too in his business. the new customers get $10 off for 10 months and all new equipment for free (DVR) etc etc etc. same story with our cell phones. it sticks.
I fully agree with Britta on this one. It is all just a marketing ploy where they gain market share by giving deep discounts to the new customers and pad their pocket books by the old loyal customers. Employers seems to pigeon hole some employees and make them think that they cannot go anywhere else for similar pay and every year increase show growth for their shareholders by eroding the compensation to their employees. I guess that is the Jack Welch way.
In a way as far as credit goes we have been spoiled by less than 10% apr lately. For us we will just not use the credit card and we certainly wont carry a balance. What will that do to the economy if everyone just got tired of the whole credit (rip off business) and only bought what we could afford. I think prices would fall because businesses would not be able to meet their quarterly or yearly sales goals. Some businesses would go out of business and some would lose jobs. But if we used less credit, I think out economy would be more able to weather an ecomonic slow down. More important on an individual economic level, our families wouldn't be put at as much risk if we used less credit.
We recently cancelled one of our credit cards because they jacked our apr to 20+. I called them 1 year after our last late payment and asked them to lower our apr to the previous level; instead they would give us a 0% on balance transfers for the year then after that our apr would again skyrocket. It was a trap just as the devil himself would have set it. "What's in your wallet?" I answer back not you anymore--
That's an interesting point, Jon. What would happen to the economy if everyone stopped using their credit cards? The only problem, then, would be building up good credit for a large purchase, like a car or house.
I try not to put more on my credit card than I can pay off, but sometimes my balance is too high. If I just stick to the plan of paying off my card completely each month, then APR wouldn't affect me at all.
We've seen this trend in Dish Network too. We'd been with a company for a number of years, wanted to upgrade to a DVR and when I talked with them they wouldn't let us unless we were a new customer. Then James called them...he got the DVR, and a reduction in monthly charge.
So...lesson learned. I'm having James call on these kinds of things. He talks with vendors all the time at work and can work the deal!
I have had that happen to me too, Britta, and I totally hate it. We tried calling our old cards, which keep raising our rates gradually. We've had to put a stop on two of our cards because they sent us one of those friendly notices that our interest would skyrocket if we did nothing. Unfortunately, they gave us a runaround when we asked if they'd lower our rates, so we had to get a new card with a fixed low rate, but it has a smaller credit limit. It's such a pain. I certainly have a goal to live with no debt. That's why we have one vehicle right now--we're morally opposed to buying anything where we'd need another loan right now, even if it makes things terribly inconvenient.
Oh, as an update, yesterday I called a credit card company to request a check of my overpayment. I had paid it off with a balance transfer to a new 8.99% fixed card, instead of the 29.99% on this one. Well, they asked if there was anything they could do to get me to keep the card, and I said only if they could lower my interest rate. Well, they offered to give me a 2% drop on purchases, as well as a fixed 4.99% rate for the life of any balance transfer I made then. Well, I took them up on it and paid off a different card which was at about 18%. So, I think that was a good deal. Unexpected, but nice.
Post a Comment