Legal Question in Bankruptcy in Utah

Gouging credit card company causing financial distress

Bank 1 skyrocketed my % rate 13.99 to 22.99%. They did a random credit check & see I'm overextended. I reminded I've NEVER been late, missed a payment & NO neg.marks. They REFUSE to reduce my rate. They CLAIM they sent an Opt Out in Jan. My credit report is flawless, I just have a lot. I've been paying them. Told them I know someone that has an account with them (Bank 1)were strapped & missed payments. When THEY asked Bank 1 for help, they reduced theirs down to 6.9%. They WON'T budge w/mine! I have 2 other accts. with them & I don't owe as much. They just sent me notices, closing them. They didn't INCREASE the rate, they closed them. No Opt Out was sent. This Co.is strong arming & causing financial stress. My concern is that while I fight them IF I don't pay THAT account-I know it'll hurt my unmarked credit report-but I pay others, can they come after my Business? I own a business that's just getting on it's feet. I don't have enough to pay THIS GOUGED account. I want to protect my Business. How can I seperate my Business from them when some business purchases were made on this personal account, etc.? Thank you!


Asked on 4/11/03, 10:18 am

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Gouging credit card company causing financial distress

If this is a personal credit account, your business is not directly liable. If you do not pay this account eventually it will be turned over for collection, and at some time to an attorney to file suit and obtain a judgment. If this is a substantial amount of money and/or you have a lot of unsecured debt, you may want to engage in some financial planning anticipating eventual bankruptcy.

If you have good credit, then perhaps you can obtain a loan to refinance the debt. In the meantime keep calling and threaten bankruptcy - also talk to a supervisor - they may relent and lower the rate.

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Answered on 4/11/03, 10:32 am


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