I've been hearing a lot lately about all the strategies the credit card companies employ to bilk hardworking Americans out of every possible penny they possibly can. You know those pages and pages of terms and conditions that accompany every offer? Believe me, they weren't written so that you can understand to what you are subjecting yourself by using that bank's credit card! There is a consequence and a penalty for just about anything you do that doesn't fit with their ideal scenario for taking your money. Heck, even if you pay the full amount on time each month and don't carry a balance they'll find a way to stick it to you! And the greedy bastards are always looking for more.
I bank with Wachovia. When I opened my checking account almost two years ago, I asked about overdraft protection. The offered it, but tied to a Wachovia credit card. OK, no problem. I filled out the application and was approved.
A couple of months ago I got a notice in the mail that Wachovia was making some changes to their credit card system. It was very confusing, but it appears they decided to split off the card for which I had an account and issue a new one. If I wanted to continue overdraft protection I had to apply (or sign up, I don't really remember which) for the new card. However any balance on the old card would stay with the old card, and it would still be called Wachovia. (Believe me, I'm simplifying this tremendously.) It seems I was getting something in the mail from Wachovia almost daily about this switchover, and I'll be honest, I have better things to do than read all the fine print I receive from banks and credit card companies.
Well, I received a statement from my Wachovia World Points account and made a payment. I was unaware that the switch had already happened and felt confident that I had made the necessary payment for the month and was done with that account. What I failed to realize is that I got a second statement that month, and yes, I did not pay anything on it. You'd think I had killed a baby in its crib!
I got a very polite letter from Wachovia informing me I had not made a payment and the account was past due. It requested I make a payment as soon as possible and apologized if I had already done so. Realizing what I had done, I immediately went to their website and made an online payment to the account. Case closed, right?
When I got my next statement I received two rather irritating shocks. One, they had charged me a $30 late fee. OK, I was late. I got confused by their account shell game, but I couldn't very well argue that my payment was late. But on top of that, without drawing any attention to it whatsoever, I noticed they had increased my APR to - get this - 28%!!!
I wasn't even away they could go this high - especially in this day of 0% balance transfers and 3.99% for the life of the loan offers. The only good thing in this was that my balance was very low so the total interest charge wasn't that great. Also, because it was low, I knew I could pay it off and be done with these thieves.
I immediately sent them the balance due, looking forward to receiving the next month's statement showing a zero balance.
However, what I got instead was another letter from Wachovia. The gist of it was that because of my "record of missed payments" they were lowering my credit limit! HUH? One late payment because I was confused by their internal account realignment and they boost my APR to 28% and lower my credit limit by $1100!
Well, the next statement arrived a week or so later, and you know what? Even though I sent them the "total amount due" there was an interest charge of $4.19. I guess my payment didn't make it to them within their oh-so-generous grace period. The very day I received this statement I mailed a check for $4.19. I have subsequently received the next statement - and thank goodness - the balance is now zero!
My first thought was to immediately call and cancel this account. But you know what, I'm not going to. I don't know what it costs them to keep an account open on the books, but I'm going to let it stand. I may even request a limit increase or anything else I can think of that will cost them time and money for nothing in return. If anyone has any suggestions - legal suggestions - I would very much appreciate hearing them.
Lastly, I know the new Congress has a lot of important issues on its agenda, but I certainly hope credit card reform doesn't get lost in the shuffle. We need it more than ever. In the meantime, stay away from the Wachovia Card!
Rant over...
I bank with Wachovia. When I opened my checking account almost two years ago, I asked about overdraft protection. The offered it, but tied to a Wachovia credit card. OK, no problem. I filled out the application and was approved.
A couple of months ago I got a notice in the mail that Wachovia was making some changes to their credit card system. It was very confusing, but it appears they decided to split off the card for which I had an account and issue a new one. If I wanted to continue overdraft protection I had to apply (or sign up, I don't really remember which) for the new card. However any balance on the old card would stay with the old card, and it would still be called Wachovia. (Believe me, I'm simplifying this tremendously.) It seems I was getting something in the mail from Wachovia almost daily about this switchover, and I'll be honest, I have better things to do than read all the fine print I receive from banks and credit card companies.
Well, I received a statement from my Wachovia World Points account and made a payment. I was unaware that the switch had already happened and felt confident that I had made the necessary payment for the month and was done with that account. What I failed to realize is that I got a second statement that month, and yes, I did not pay anything on it. You'd think I had killed a baby in its crib!
I got a very polite letter from Wachovia informing me I had not made a payment and the account was past due. It requested I make a payment as soon as possible and apologized if I had already done so. Realizing what I had done, I immediately went to their website and made an online payment to the account. Case closed, right?
When I got my next statement I received two rather irritating shocks. One, they had charged me a $30 late fee. OK, I was late. I got confused by their account shell game, but I couldn't very well argue that my payment was late. But on top of that, without drawing any attention to it whatsoever, I noticed they had increased my APR to - get this - 28%!!!
I wasn't even away they could go this high - especially in this day of 0% balance transfers and 3.99% for the life of the loan offers. The only good thing in this was that my balance was very low so the total interest charge wasn't that great. Also, because it was low, I knew I could pay it off and be done with these thieves.
I immediately sent them the balance due, looking forward to receiving the next month's statement showing a zero balance.
However, what I got instead was another letter from Wachovia. The gist of it was that because of my "record of missed payments" they were lowering my credit limit! HUH? One late payment because I was confused by their internal account realignment and they boost my APR to 28% and lower my credit limit by $1100!
Well, the next statement arrived a week or so later, and you know what? Even though I sent them the "total amount due" there was an interest charge of $4.19. I guess my payment didn't make it to them within their oh-so-generous grace period. The very day I received this statement I mailed a check for $4.19. I have subsequently received the next statement - and thank goodness - the balance is now zero!
My first thought was to immediately call and cancel this account. But you know what, I'm not going to. I don't know what it costs them to keep an account open on the books, but I'm going to let it stand. I may even request a limit increase or anything else I can think of that will cost them time and money for nothing in return. If anyone has any suggestions - legal suggestions - I would very much appreciate hearing them.
Lastly, I know the new Congress has a lot of important issues on its agenda, but I certainly hope credit card reform doesn't get lost in the shuffle. We need it more than ever. In the meantime, stay away from the Wachovia Card!
Rant over...
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