Beware of credit card issuers' tactics EVERYDAY CHEAPSKATE - Allentown Morning Call

You open up the mail and see a missive from your car lender. You know, that three-year, 6.9 percent loan you got on your fancy-schmancy SUV. You've made a few of the $617 payments, and you can't wait to blow through that stack of 36 payment coupons. You open up the letter, and to your daze and awe, your 6.9 percentage involvement charge per unit have been increased to 27.99 percent. And by the way, your payments are $827, effectual immediately. Wha-a-at?! How can they make that? Don't worry; they can't. I just made that up.

You have got a legally binding contract on that auto loan, and your involvement charge per unit is fixed for the term. And even if you are late paying, you'll acquire socked with a late fee, but they can't raise the rate. But conjecture what? You could -- and you have got already -- received that sort of notice from your recognition card provider. Recognition card business relationships come up under some other class all their own. Recognition card understandings have got this freakishly eccentric caution that says: ''We modesty the right to change the footing and statuses at any clip and for any reason.'' Bingo. That's the clause that is giving recognition card issuers, such as as and Chase, the right to increase involvement rates with abandon. And for no ground other than they can. I am hearing from readers that these notices get in what looks like debris mail envelopes without a clear indicant of whom they're from. They do the proclamation and then give the cardholder the option to ''opt out'' from the increase. But that necessitates an action such as as a telephone phone call or returning the form. And opting out agency you cannot usage the card anymore. And if you are late with a payment, you lose your opt out. Of course, if you lose that bantam window to choose out, your charge per unit additions automatically. I just heard from Jackie K., World Health Organization states me that Pursuit raised the charge per unit on their card to 66 percent. I know, that's difficult to believe, and admittedly, I have got not verified this independently. But I make cognize that lone some states have got laws that cap the rates recognition card companies can charge. and have got no caps at all. Next clip you believe about it, bank check to see where your recognition card supplier have chosen to integrate and make business. I'll wager you anything it's one of those states. So consumer beware. If locking orbs with 27.99 percentage involvement (or higher) doesn't give you a large ground to pay off your recognition card debt once and for all, I just don't cognize what will. Virgin Mary Holman Hunt is the laminitis of and writer of 17 books, including ''Debt-Proof Living.'' You can e-mail her at , or compose to Everyday Cheapskate, P.O. Box 2135, , 90723. To happen out more than about Virgin Mary Holman Hunt and read her past columns, delight visit the Creators Syndicate Web page at . USEFUL information Recognition card business relationships come up under some other class all their own. Recognition card understandings have got this freakishly eccentric caution that says: ''We modesty the right to change the footing and statuses at any clip and for any reason.''