Every since the new legislation passed restricting credit card companies’ ability to raise interest rates, among other things, credit card companies have been using every dirty trick in the book to “get back” at borrowers and squeeze every cent out of them. According to an article in the Star-Telegram, some credit card borrowers are reporting that their minimum monthly payments are rising as much as 3 times what it was originally since the new law passed.
The article said:
“Paul Baker was smacked with a rude surprise when he opened a notice from his bank informing him that his minimum monthly payment had skyrocketed from $560 to more than $1,300. The 31-year-old Stephenville man didn’t have one of those toxic subprime mortgages with a teaser rate that suddenly reset. … Chase didn’t alter the 4.9 percent interest rate. Instead, it ratcheted up his minimum payment from 2 percent of principal to 5 percent.”
Just the other day, credit card companies were promising that they would avoid increasing interest rates ahead of the new law, now they’re increasing minimum payment requirements even on their best customers. A matter of fact, it’s the best customers that they seem to be targeting. Many of the people facing minimum payment increases are those with good credit scores and excellent payment histories. But fortunately credit card borrowers aren’t idly sitting by and just taking this abuse. According to a Consumer reports survey, 32 percent of cardholders surveyed have paid off or closed an account because the issuer has cut their credit limit, increased their interest rate or imposed a new fee. Please take extra care to review your credit card statements for any changes. Changes in fees, interest rates or minimum payment requirements can make a huge impact on your budget.