The purpose of this blog entry is let you know that some of the terms of you reading this blog have been modified. These changes are not a reflection of how you managed to read The Debt Free Advocate or your credit score.
The table below summarizes the changed terms. Please carefully review this entire Change in Terms Notice for complete information of all changes and retain this in your favorites for future reference.
Subject
Interest rate-your spread percentage is increasing.
Excessive reading fee-Excessive reading fees will no longer be assessed.
The New Terms include an increase to the FINANCE CHARGE rate that is charged on you reading this blog. The ANNUAL PERCENTAGE RATE(APR) is a variable rate based on your "Spread" plus the Prime Rate which was 3.25% as of October 1, 2009. However, the prime rate may change, which would affect your APR. The table below shows your new APR.
NEW APR
Spread 17.20%
Plus Prime as of October 1, 2009 3.25%
New APR 20.45
Daily Periodic Rate 0.05602%
-The minimum APR for reading this blog is 8.90%. The maximum APR is 27.00%
-Please refer to any recent posts for your current APR and any promotional rates that may apply.
-Any existing unread posts on this blog currently on a promotional rate stay in effect until the promotional rate expires.
-Except for these exclusions, the increases to the APR will apply to both new posts made on this blog as well as any existing unread posts. The new terms regarding APR increases become effective November 30, 2009, and will apply to all billing cycles beginning on or after that date, unless you follow the opt-out procedures and close your account as described below.
If you accept the new APR, no action is required.
If you want to opt-out and discontinue reading this blog: If you choose not to accept the changes above, you will have to notify us on before November 29, 2009, and stop reading this blog. If you opt-out of these changes, you may continue reading any unread posts under the current pricing terms of your subscription but you will have the ability to use the blog for further financial education.
Over Reading Fee elimination: In addition to the above changes, we want to inform you that, beginning February 22, 2010, we will no longer charge an Over Reading Fee if we allow your reading to exceed the limit.
After reading this post you are probably thinking what the heck is that all about or we are full of crap. But really the banks are full of crap.
Last week Bank of America announced that it will not increase interest rates on consumer credit card accounts between now and the effective date of the CARD Act, unless a customer's account falls past due. Also, variable rate credit card accounts may experience rate changes based on changes in the prime rate. But is that exactly true?
Starting in February 2010 the Card Act will put a stop to:
- Charging consumers to pay by phone
- Sudden surges in interest rates
The bill also makes changes to:
- Applying payments made over the minimum due to balances with the highest interest rates first.
- Information in tiny print must be made clearer.
- Let consumers know how long it would take to payoff a balance if they only pay the minimum payment.
Credit card companies have been raising fees and interest rates. From November 2008 to February 2009, rates increased from an average of 12.02% to 13.08%. Because of this people have not been able to make their payments on their credit cards and are walking away from the debt.
As we expected, with the new law going into effect, banks would start raising interest rates even to account holders who pay their accounts on time.
Our post was based on a copy of a letter our $190,323.79 in debt couple, Lois and Clark received from Wells Fargo. They also have received a similar letter from Bank of America, but they have been late on their Bank of America cards. So it is understandable that the rates would be going up on those cards. But the cards that they pay on time are going up as well. Even though the letter they received says the changes are not a reflection of how you have managed your account or your credit score.
So here it is folks. Watch for more letters like this coming your way as banks and credit card companies stick to you as much as they can before the CARD Act goes into effect. Until February 2010, all you can do is accept it and pay the higher rate or close your account.
The table below summarizes the changed terms. Please carefully review this entire Change in Terms Notice for complete information of all changes and retain this in your favorites for future reference.
Subject
Interest rate-your spread percentage is increasing.
Excessive reading fee-Excessive reading fees will no longer be assessed.
The New Terms include an increase to the FINANCE CHARGE rate that is charged on you reading this blog. The ANNUAL PERCENTAGE RATE(APR) is a variable rate based on your "Spread" plus the Prime Rate which was 3.25% as of October 1, 2009. However, the prime rate may change, which would affect your APR. The table below shows your new APR.
NEW APR
Spread 17.20%
Plus Prime as of October 1, 2009 3.25%
New APR 20.45
Daily Periodic Rate 0.05602%
-The minimum APR for reading this blog is 8.90%. The maximum APR is 27.00%
-Please refer to any recent posts for your current APR and any promotional rates that may apply.
-Any existing unread posts on this blog currently on a promotional rate stay in effect until the promotional rate expires.
-Except for these exclusions, the increases to the APR will apply to both new posts made on this blog as well as any existing unread posts. The new terms regarding APR increases become effective November 30, 2009, and will apply to all billing cycles beginning on or after that date, unless you follow the opt-out procedures and close your account as described below.
If you accept the new APR, no action is required.
If you want to opt-out and discontinue reading this blog: If you choose not to accept the changes above, you will have to notify us on before November 29, 2009, and stop reading this blog. If you opt-out of these changes, you may continue reading any unread posts under the current pricing terms of your subscription but you will have the ability to use the blog for further financial education.
Over Reading Fee elimination: In addition to the above changes, we want to inform you that, beginning February 22, 2010, we will no longer charge an Over Reading Fee if we allow your reading to exceed the limit.
After reading this post you are probably thinking what the heck is that all about or we are full of crap. But really the banks are full of crap.
Last week Bank of America announced that it will not increase interest rates on consumer credit card accounts between now and the effective date of the CARD Act, unless a customer's account falls past due. Also, variable rate credit card accounts may experience rate changes based on changes in the prime rate. But is that exactly true?
Starting in February 2010 the Card Act will put a stop to:
- Charging consumers to pay by phone
- Sudden surges in interest rates
The bill also makes changes to:
- Applying payments made over the minimum due to balances with the highest interest rates first.
- Information in tiny print must be made clearer.
- Let consumers know how long it would take to payoff a balance if they only pay the minimum payment.
Credit card companies have been raising fees and interest rates. From November 2008 to February 2009, rates increased from an average of 12.02% to 13.08%. Because of this people have not been able to make their payments on their credit cards and are walking away from the debt.
As we expected, with the new law going into effect, banks would start raising interest rates even to account holders who pay their accounts on time.
Our post was based on a copy of a letter our $190,323.79 in debt couple, Lois and Clark received from Wells Fargo. They also have received a similar letter from Bank of America, but they have been late on their Bank of America cards. So it is understandable that the rates would be going up on those cards. But the cards that they pay on time are going up as well. Even though the letter they received says the changes are not a reflection of how you have managed your account or your credit score.
So here it is folks. Watch for more letters like this coming your way as banks and credit card companies stick to you as much as they can before the CARD Act goes into effect. Until February 2010, all you can do is accept it and pay the higher rate or close your account.
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