I recently learned that the interest rate Providian (now Washington Mutual) has been charging me (and refusing to lower) may be illegal. I recently found this table on Bankrate.com of the 21 states (and District of Columbia) that have caps on credit card interest (as of 3/2002). The 29 not list have no laws. My state (Kansas) is one of the 21. Take a look.
With this new information, I made one last call to Providian to get my interest rate lowered. It was my hope that part of the interest rate would even be waived. I made sure I was pleasant and non-argumentative. When they told me they couldn't do any maintenance on the account because it closed, I politely brought up the information above. At this point they started reading the card holder agreement. Refusing to address what the law says (according to the American Banker Association). Oh well, I will continue with the plan, and when I get the current bill in the mail, I will take it to the Kansas Bankers Commissioner and talk with them about the issue. Providian (Washington Mutual) may regret not having worked with me, depending on what I find out at the commissioners office.
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go ahead share your thoughts with me now.
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I'm thinking that in the cardholder agreement it will say something like "this contract will be according to the laws of the state of (not Kansas). So I wouldn't get my hopes up too high.
ReplyDeleteEven so though, if you are paying it off completely, then you have already paid all of your "stupid-tax" on it and can call it water under the bridge.
I'm just glad that you are paying it off.
Thanks Jag -
ReplyDeleteYou are probably right, but wouldn't it be nice if they have to pay me back, because of their illegal activity? However, there is probably some loophole that allows them to get away with it.
i believe loophole is the right word for it. i believe the supreme court allows credit card companies to operate according to the laws of one state, even when doing business in another.
ReplyDeletesuper-high rates like this exist for people who cannot refinance to a lower rate. or in your case, for people who will not refinance to a lower rate. if you wanted to punish the bank, you would refinance at a much lower rate, and close this account. instead, you will pay this interest, benefiting the bank.
I think mcfnord is right. I think credit card companies choose to operate in states that don't have any interest limits. Therefore, the company may be totally in the right...
ReplyDeleteEveryone knows that Providian is the worst cc company. They have been sued so many times. Hopefully BOA will do a better job
ReplyDeleteIf you play with snakes, you will get bitten. I don't have credit cards and will never get another one.
ReplyDeletePerhaps you should let this just lie. Follow it a little more, and make some noise.
ReplyDeleteIf the laws say something, the banks should be subject to them. I am not sure what the final position would be, but perhaps some clever and concerned lawyer may find in this a case for the poor mistreated and forever gouged consumer.
Please update us when you finish with the Commissioners.