Legal Question in Business Law in Texas

Interest Rate on Credit Cards

I signed for my Sears Credit Card in 1977. I agreed to the terms on the contract and the highest interest rate at that time. Now in 2003 my interest rate is 26% not close to what I agreed on.Can they change my interest rate to any higher level without any signature agreeing to that higher rate. They told me they sent out a paper that told me of a higher rate. I never saw it and do they not need another signature to agree to the higher rate? Is there no limit to the interest stores can charge on their credit cards?


Asked on 10/21/03, 11:57 am

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Interest Rate on Credit Cards

Sorry, but your continued use of that card was your agreement to the higher rate. The notice is usually sent as a flier, printed in very small type, mailed with the bill. It tells you that the rates are going up and if you don't agree, to pay off the balance and cancel the charge card.

There is a limit as to what they can charge, and they're almost there.

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Answered on 10/21/03, 12:06 pm


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