Legal Question in Credit and Debt Law in Alabama

Credit card APR tripled

Here's the situation: My wife & I have a credit card with a huge credit limit - $28,000. The balance on this card has been around $24,000 with an APR of 10.54%. Our credit is excellent and I always pay this card before the due date and always pay more than the amount due. With our last statement came a rate increase to 29.49% - that's almost triple what we were paying. I called the card company and they said they had reviewed our account and because we had excessive credit card balances they raised our rate. We have several other credit cards, but they all have balances in the $7,000 range. The only excessive credit card balance is this company. They gave us the credit and are now penalizing us for it. They refused to lower the APR. Now I have a $749 payment, of which $451 is interest. Do I have any legal recourse?


Asked on 3/16/05, 4:58 pm

2 Answers from Attorneys
Bobby Lott, Jr. Attorney at Law

Re: Credit card APR tripled

Credit card companies are just evil! I'm just kidding, but they are very frustrating, as you are finding out.

I would have to evaluate your contract, but chances are they have covered their bases well with tons of "weasel" clauses that juuuusssssttt squeak by the Federal guidelines.

I would love to get a class of Plaintiffs together to do something to stop their predatory practices.

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Answered on 3/16/05, 5:57 pm
Robert Kreitlein Robert Kreitlein, Attorney at Law

Re: Credit card APR tripled

Wow. That's interesting. I would have to look at your contract. Chances are there is a clause somewhere in there that states they can raise the rate if you have "excessive balances". The only problem with that is, it sounds rather subjective. Normally, these companies cover their butts pretty well (all that money they bilk people out of can buy some pretty pricey legal talent-and alot of it!), but unless your agreement with them states the actual percentages or amounts that DEFINES "excessive balances", I think you might actually stand a chance here. If they have made a subjective judgment that is not based on hard numbers in the contract, I think I would consider taking action. I tell you what, have an attorney look that agreement over. If you would like, I'll take a look at it for no charge, but either way, have somebody look at it. Even if another attorney charges you $100, it would be a small price to pay to get that monthly payment back down! Good luck!

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Answered on 3/16/05, 9:00 pm


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