I read about this on another board that anyone who has a Mypoints card or other Wamu branded card was getting their Interest Rate hiked up to 25.99%, first thoughts to me was maybe they were late payers etc. well today I get my Wamu statement with the letter we are changing the terms and they are increasing the interest rate effective Jan 1st, 2009 to 25.99 %.

This is ridiculous to double the interest rate on a credit card, I used to pay mine off in full, but haven't since DH went on disability but I make more than the minimum payment on it and its always early never late and this is not right. So I guess I have to do as they say if I want to keep my terms as is send them a letter and my account will be closed, I knew as soon as Washington Mutual was sold to JP Morgan Chase there would be changes but not this soon after takeover. Oh well I guess my Credit Union will be getting my business from here on out and come tax time this card will be paid off in full so I dont have to prolong being a customer of Wamu's for more than a few more months.

Anybody think other Credit Card issuers are going to go to this and raise interest rates on all customers even the loyal good paying ones?

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~ Christine ~
DisAbled SAHM to Stefan 9/30/1998
RIP Daddy~ 01/24/1930-06/01/2007 I miss you !
Dont Think you Can .. know you can ~ Jeff Hardy

I didnt know this! Thank you for posting the info. Although I was wondering if anything would happen when Chase bought them out. I can see other credit cards doing this. They have to make money somehow and scamming their customers is the way to go! Like you I will be working on paying my card off soon.

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Paula
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Bank of America raised their rates on everybody a few months ago to over 25%. I called and complained. We've always been on time, never late, good credit, etc. Anyway, they lowered ours down to 14%. Needless to say, we're not using it.

Also, JC Penney did the same thing last month. They raised it to something like 27%. Same thing again, never late, good credit. Except for this one, it said 'you cannot refuse this change.' PLUS they changed the grace period. Now instead of 31 days, it's something like 23 days. So your have to pay your bill earlier. Ours used to be the 12th of each month. Now it's the 6th.

We've totally stopped using credit cards. Seems like there should be something Congress can do about these rates.

And then they wonder why people can't pay their bills?????

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"Whenever God Closes One Door He Always Opens Another, Even Though
Sometimes It's Hell in the Hallway"
"

It it unfortunate the credit companies gave credit recklessly and now they are making up their losses on people who pay. 25% seems unconscionable for those who have been paying as agreed to.

I've never had a credit card balance, so i'm not sure how it works --- do you have to pay the higher interest on the current balance, or just on new balances you incur? In other words, if you have a $6K balance and have been paying as agreed and not late at 8%, are you suddenly paying 25% on the same balance the next month if you make no new charges to the card? If so, I hope you can look around and transfer your debt somewhere else at a better rate.

We never carry a balance and always just pay ours in full each month. We do have a card that has given us vacation rewards points to the tune of 3%, which adds up terribly fast given that we pay everything with that card - all bills, groceries... pretty much everything but our contribution at church! Last month we got a notice saying that the rewards program is being changed to a 'new and improved points program that will give us a wider range of vacation options." Suuure it will. We can use it at more PLACES, but under the new system, we got more like 1% of the value of our purchases.

Time to get a different card...

I also HAD a Mypoints card.I was never late.Not only did they raise the intrest rate to 31 %. They change my date that it was due each month. I called to complain and they would not do any thing. I cancel it.Carol