Consumer support grows for Credit Cardholders Bill of Rights
Since the Credit Cardholders Bill of Fights was introduced in Congress last month, the Problem Solvers have been flooded with complaints about confusing fees, sudden rate changes and, in this case, the credit card being suddenly discontinued with no explanation.
Sandy Norman of Edmonds is trying to make sense of her statements-after getting a termination notice in November from Aspire-Visa that said the program would be discontinued.
"It just said you can't use your credit card any longer. We're going out of business," Norman said.
"We've closed your account to new transactions," stated the letter.
Consumers across the country filed complaints.
"And when I got the next statement, everything went up," Norman said.
She says there were higher minimum payments, confusing charges on her bill that should not be there, and the interest charges didn't make sense. The annual percentage rate is on the card is 29.9 percent, but the APR noted on some payments was much larger.
"Look at that! Right there!" she said, pointing to an APR calculation on one-line item of 62.97 percent. The calculation appears to reflect the "fixed rate" application to a small portion of the balance. Norman said she tried to get an explanation for concerns about her bill.
"I couldn't get any answer from customer service. And the person I talked to was in a foreign country. And when I asked to speak to somebody, they said, 'Well, we can't connect you,'" she said.
Norman says the company repeatedly increased her credit limit, but asked for very low minimum payments. She thinks credit card companies make a calculated effort to get you to send only the minimum payment because they know it will barely put a dent in your outstanding balance.
"It would take a very long time to pay it off," she said.
Norman says a Credit Cardholders Bill of Rights, which would hold banks more accountable, cannot come soon enough.
"They have to have guidelines. They definitely have to have guidelines. If they don't, they'll take as much as they can get," she said.
Bills have been introduced in both the House and Senate.
When you pay your credit card bills, ignore the minimum payment; always pay more. Minimum payments will only extend your debt.
As for the Aprise-Visa program, I learned it's been the subject of investigation. I called the parent company, but could not get past the recording.
In the past three weeks, the Problem Solvers have received nearly 200 complaints about credit card company practices. If you have a story to share, send it our way and we'll make sure your voice is heard when the Credit Cardholders Bill of Rights comes up for a hearing in Washington, D.C.
You might also want to get in contact with your own representatives in Congress as the proposed legislation is expected to have strong opposition from the banking industry.
Hearings are expected to start next month.
More information:
HB 622
SB 235
Sandy Norman of Edmonds is trying to make sense of her statements-after getting a termination notice in November from Aspire-Visa that said the program would be discontinued.
"It just said you can't use your credit card any longer. We're going out of business," Norman said.
"We've closed your account to new transactions," stated the letter.
Consumers across the country filed complaints.
"And when I got the next statement, everything went up," Norman said.
She says there were higher minimum payments, confusing charges on her bill that should not be there, and the interest charges didn't make sense. The annual percentage rate is on the card is 29.9 percent, but the APR noted on some payments was much larger.
"Look at that! Right there!" she said, pointing to an APR calculation on one-line item of 62.97 percent. The calculation appears to reflect the "fixed rate" application to a small portion of the balance. Norman said she tried to get an explanation for concerns about her bill.
"I couldn't get any answer from customer service. And the person I talked to was in a foreign country. And when I asked to speak to somebody, they said, 'Well, we can't connect you,'" she said.
Norman says the company repeatedly increased her credit limit, but asked for very low minimum payments. She thinks credit card companies make a calculated effort to get you to send only the minimum payment because they know it will barely put a dent in your outstanding balance.
"It would take a very long time to pay it off," she said.
Norman says a Credit Cardholders Bill of Rights, which would hold banks more accountable, cannot come soon enough.
"They have to have guidelines. They definitely have to have guidelines. If they don't, they'll take as much as they can get," she said.
Bills have been introduced in both the House and Senate.
When you pay your credit card bills, ignore the minimum payment; always pay more. Minimum payments will only extend your debt.
As for the Aprise-Visa program, I learned it's been the subject of investigation. I called the parent company, but could not get past the recording.
In the past three weeks, the Problem Solvers have received nearly 200 complaints about credit card company practices. If you have a story to share, send it our way and we'll make sure your voice is heard when the Credit Cardholders Bill of Rights comes up for a hearing in Washington, D.C.
You might also want to get in contact with your own representatives in Congress as the proposed legislation is expected to have strong opposition from the banking industry.
Hearings are expected to start next month.
More information:
HB 622
SB 235