On previous posts, I’ve written about how some credit card issuers jack up the interest rates of cardholders when their credit scores are negatively impacted by their activity with other card issuers, even if their account with them is currently in good standing. It’s very clearly an unfair policy used by card issuers that many consumers have revolted against, but the good news is that there may be some things you can do to fight back against unfair credit card practices.
I was recently reading a financial advice column and a reader wrote in to say that he had been a victim of this practice, known as “universal default“. Apparently, he had transferred some debt to a credit card on which he was already carrying a balance because that card offered a lower interest rate. Much to his surprise, the interest rate was jacked up indiscriminately. When he contacted customer service at the card issuer, he was treated rudely on two separate occasions, and as a result, he contacted his states Banking Commission.
It seems that the State Banking Commission talked some sense into the credit card issuer because the reader received a personal phone call from the CEO’s office just five days later. The representative let the reader know that his interest rate was being changed back to the lower rate that he started with and that he was going to be credited for the finance charges that he had accrued as a result. The reader also received a few additional reductions in “fees” on his account because of the inconvenience the whole mess caused.
The moral of this story is that you dont have to give up after calling customer service at your card issuer or any company for that matter. If you’re treated poorly and the company refuses to work with you, don’t be afraid to fight it and run it up the flag pole. You might be surprised at what you can get done. There is no reason for being treated in such an unjust manner and, if you’re a customer in good standing, there’s absolutely no reason why a card issuer should be justified in jacking your interest rates up.