Bits of Silver

I have to admit, I lost it the other day.  For the second time in a month I received a notice from a bank that processes my credit card informing me of an increase in interest rate up to 23.4%, late fees that would be $39.00 and they could raise my rates well over 30% if I am late just once.  One came from GE Bank that processes my Belk's Department Store Card, another from Chase who processes my Coldwater Creek card.

For a little background, I have had each card for over eight years, never paid late,  pay them off within one to two months.  The best reason to have them was the coupons I received several times a year and the 'extra' customer care because I had reached 'elite' status in their stores. 

As I don't have high balances, it's not as much about the fees (which still make me mad) as it is about the prinicipal of their strategy I am disapproving. 

I'm wondering how others are coping who receive these same notices and know they can't just tell each one to take a hike? That is exactly what I did in each case.   I wrote a letter to both, telling them that this was not the way to treat their best customers, that I will not be part of their greedy rush to beat the new laws coming into place to stop this very problem, and to close my account immediately. It was sad- but so long cards. I'll use my American Express or my Citibank World where I can earn points instead.

I am extremely annoyed that my excellent credit rating will go down because I don't accept their greedy increases, closing my account.  I am practising good financial responsibility keeping my interest rates on  credit cards at a respectable level - why punish me for that? I hope anyone else who has received these notices will join me in writing to your representative and ask them to move up the date that bank were given(really congress- couldn't you have seen this coming??) to stop doing this, and instruct the credit report agencies not to change our status if we don't agree to such outlandish demands. 

I might mention, this made me stop and look at each card I have and review the current rates . I noticed my family has three cards, all from the Citibank that vary from 8.94 %, 13.4% to 18.75 % now. Only two of the three have gone up recently.  Guess which one I will use! When I called there to ask why they are three different rates since it's the same person paying, the same credit report, the same excellent payment record, all they could say was maybe it was because they were different types of cards. When I pointed out the first two are exactly the same (used for travel points for my husband and myself) they had no real reply. Since one was the 8.94% at present- I figured I better shut up and get off the phone.   I understand companies need to make money, but when they are receiving their money on an extremely low prime, and then changing their terms so they can charge unbearable interest rates, we all need to let them know- enough already!

Feel free to write me and give me your personal or business experience on this.  What have you done recently to help your company use credit wisely, or get out of a jam?