Today, I did something I never like doing. I called my credit card company. Before I lost my job in March, I would pay off my credit card bill each month. I've had to rely on my credit card a little more than normal for emergencies after our savings ran out. It seems like things decided to break after I lost my job. I've had to replace two car tires, get new brakes, and of course since I have no job, I have no medical insurance. My son got sick and we had to charge the medical bills. I got the bill and realized I couldn't make the minimum payment due, so I called the credit card company to see if I could work out some type of alternate payment plan. Scroll down to see what happened.
I proposed an alternate payment plan. My spouse has been able to get work, but won't be paid for the first weeks of work until the 15th of August. I asked them if they'd extend their payment due date from August 10th to August 16th. We could easily pay the minimum due online on the 15th and then leave one day for it to post. The customer service representative put me on hold because she had to check with her supervisor. She came back on and notified me that my rate would be increased from 7.99% to 19.99% soon. She mentioned they were going to send me a notice in the mail and that the interest rate would change within just a few months. I asked why my rate would change, and she said that it was because my "risk profile" was greater because I was unemployed. So, instead of trying to work with me and get their payment, they are totally screwing me over. So, not only will I miss a credit card payment for the first time in my life, I will also be paying a 20% interest rate soon. This sucks and it is one reason why I do not want to do business with Bank of America again.
I am also wondering if this is legal. Can they do this? Apparently they think so.
UPDATE: I forgot to mention that when I miss my payment they will probably jack up my rate to 29.99% and also charge me a late fee. How nice.