Answers
I just received a letter that an unsecured line of credit that my wife and I have through Wells Fargo Financial will get nearly a 7% increase on our APR. They state in their Q&A section in the letter:
"Why are increases being made to my APR?- Well's Fargo practices 'risk-based pricing', which means customers with the best credit practices receive the best interest rates. We recently reviewed all of our customers' credit history, both internally and with data from a credit reporting agency, and after thorough risk analysis concluded that we needed to increase your APR."
Ummm.... My wife and I haven't opened any new accounts, nor have we been late on any payments on this account or any other. We have not made any new purchases on our accounts in well over 2 months yet suddenly we are at a higher risk? Is this in response to the new credit card law? Is this a violation of that law?
Furthermore, their "option" for us is if we do not agree to their new terms, Wells Fargo will close the account (and undoubtedly annotate that THEY are the ones that requested that it be closed) and that is pretty much the only way we get to keep the current interest rate is by paying off any remaining balance.
I thought the new Law stated that they cannot raise interest rates on current accounts unless we were late? And any new rate increases cannot apply to previous balances? I dunno...
Does anyone have an answer to this? Is it happening to anyone else?
Thanks.
PS...I'm asking a serious question and only request serious answers. If you have snide remarks, keep them to yourself.
Yeah, I just found the full bill and read through it. Basically it isn't in effect yet which means credit card companies have until 2010 to bend people over the barrel.
But still, let's here some more opinions about this, and if anyone knows of a class action lawsuit agains Wells Fargo for this very reason, let me know...I think I might want in on it.
I don't want to sue them for millions of dollars.... I just want my interest rate to not go up because of their anticipation of the new law. And if I want to close my account because of this, I want it to be accurately reflected on our credit report that WE asked for the account closure.
Chime in folks.
The Wells Fargo "Line of Credit" was issued as a credit card.
I posted my understanding of that after I posted the question.
However, thank you for the link. It is useful.
First, the Credit CARD of 2009 does not become effective for 9 months. Second, a line of credit is not the same thing as a credit card. Third, the act does not limit their ability to increase interest rates. It only limits their ability to apply interest rates to outstanding balances when the increase becomes effective.
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NEW YORK – It's no mistake. This credit card's interest rate is 79.9 percent.
The bloated APR is how First Premier Bank, a subprime credit card issuer, is skirting new regulations intended to curb abusive practices in the industry. It's a strategy other subprime card issuers could start adopting to get around the new rules.
Typically, the First Premier card comes with a minimum of $256 in fees in the first year for a credit line of $250. Starting in February, however, a new law will cap such fees at 25 percent of a card's credit line.
In a recent mailing for a preapproved card, First Premier lowers fees to just that limit — $75 in the first year for a credit line of $300. But the new law doesn't set a cap on interest rates. Hence the 79.9 APR, up from the previous 9.9 percent.
"It's the highest on the market. It's the highest we've ever seen," said Anuj Shahani, an analyst with Synovate, a research firm that tracks credit card mailings.
The terms are eyebrow raising, but First Premier targets people with bad credit who likely can't get approved for cards elsewhere. It's a group that tends to lean heavily on credit too, meaning they'll likely incur the steep financing charges.
So for a $300 balance, a cardholder would pay about $20 a month in interest.
First Premier said the 79.9 APR offer is a test and that it's too early to tell whether it will be continued, according to an e-mailed statement. To comply with the new law, the bank said it will no longer offer the card that has $256 in first-year fees as of Feb. 21, 2010. However, customers will still be able to use their existing cards. The bank said "no final decisions" have been made regarding any rate changes for those cards.
First Premier noted that it needed to "price our product based on the risk associated with this market."
The bank declined to specify how many people were offered the 79.9 APR card.
According to First Premier's Web site, the credit cards are serviced by its sister organization Premier Bankcard. The company, based in Sioux Falls, S.D., says Premier Bankcard is the 10th largest issuer of MasterCard and Visa cards in the country, with more than 3.5 million customers.
In a mailing sent to prospective customers in October with the revamped terms, First Premier writes "...you might have less-than-perfect credit and we're OK with that." The letter notes that an online application or phone call is still required, but guarantees a 60-second status confirmation.
The letter also states there are no hidden fees that aren't disclosed in the attached form. That's where the 79.9 percent interest rate and $75 annual fee are listed. There's also $29 penalty if you pay late or go over your $300 credit limit.
Even if First Premier doesn't stick with the 79.9 APR, it will likely hike rates considerably from the current 9.9 percent to offset the lower fees, said Shahani of Synovate.
The revamped terms may not be the only changes; First Premier also appears to be moving away from the riskiest borrowers.
The bank typically mails offers to subprime households, meaning those with credit scores below 700. In the third quarter, however, 84 percent of its offers were sent to subprime households, down from 91 percent the same period last year, according to Synovate.
First Premier could be cleaning up its credit card portfolio since the new regulations will limit its ability to raise interest rates. That could mean First Premier won't issue cards as liberally to those with bad credit.
As harsh as First Premier's terms seem, that could be a blow to those who rely on the card, said Odysseas Papadimitriou, CEO of CardHub.com.
"Even when the cost of credit is astronomical, for people in true emergencies, it's much better than not having access to credit," said Papadimitriou.
Until Feb. 21, First Premier is still offering its even-higher-fee card online. So the price for credit the bank charges is at least $256 in first-year fees.
First Premier has always billed it self as a credit builder credit card. The funny thing is you can usually find a normal card without paying fees unless you have declared bankruptcy or owe like 50 grand in other debt.
This credit card reform is a bunch of garbage. Cut em up people.
Ok it's my dad and my step mom. My 4 year old is starting t-ball and they are just driving my crazy. They want to go to every practice and game which I am ok with that but it is the way they act when they are there. They take credit for everything he does like I am not even the parent. They actually very rarely see him except for now at these games. My dad is really upsetting my husband because my husband works alot of hours and now my dad is pretty much trying to step in and do all of the dad things and trying to push my husband aside. It's not just these games. For example: for Christmas they will see toys that he has at our house and buy them for their house and let him open them for Christmas,if they have a movie or something down there that he really wants if he asks to bring it home my step mom says no and won't let him, she's even made him cry before over that "Over the Hedge" movie, and I even though I was broke had to go borrow money from my in-laws so that I could go
and buy him the movie. I think alot of it is because I only went down there on weekends and they used to do the same thing with me and now they think that they have to do it with my son. How do I as nicely as possible tell them to back off. Remind them that I am the parent and I don't mind them being loving grandparents but they need to back off a little
At one point they even went as far to buy a booster seat for my son for THEIR vehicle when I didn't even have one for mine. At my kids have actually only ever rode with them maybe 3 times and my son is almost 4 years old.
by the way I also have a 10 month old little girl and now my step mom has totally went over board with her too. She doesn't have her own kids and always wanted a little girl so it is horrible! To the point where sometimes she is rude to my son because she only wants to play with my daughter.
Okay, when I read your post, I want to laugh. Not laugh at you, but with you because the whole thing is just insane.
I have had a simular problem in the past and know if I am so fortunate to have more children, it will be a problem in the future with my mom and step dad. It seems that the more you pull away, the worse it gets. The problem is very complex. Obviously they feel the need to compete with you and your husband. Your father has some sort of thing going on where his "manhood" is threatened by your husband and he has to prove that he is still #1. My mother attempts to do this with me and my children. It is an attempt to prove that she knows best or to compete with me. I think it must be some sort of mid life crisis thing. Also they seem to have to make a public showing out of being "involved". This is to compensate. Either consciously or unconsciously they know that they haven't been there enough in the private moments where it truly counts to the child. Therefore they feel compelled to make a showing out of it...they think that they are making up for it to the child. BUT, kids are smart. They KNOW the difference even from a young age. Also, my mom tends to really like the attention and to "be seen" being grandmotherly in public. Like I said...it is a poser move. She doesn't really come to visit my kids or be really grandmotherly...but let them be in the public eye...you can color her there EVERY TIME. And you better believe that she is the BEST grandparent and the most ATTENTIVE grandparent in attendance. ALWAYS. Don't worry about how your child perceives it...they know. Like I said.
BUT, it is your response to all of this that counts more than anything. If you act sour or nasty...you are going to just make it worse. Yes, they have crossed the line...WAY OVER but they probably don't see it that way. They don't consciously realize how much of a competition they have made "parenting".
The best way to win in this sort of competition is not to compete. You know what is best for your child. You know what needs and wants that child has better than anyone else.
The Washington Post has called him the most conservative Minnesota governor since Governor Theodore Christianson in the 1920s.
Some excerpts:
TIM PAWLENTY is regarded as one of the nation's most innovative, energetic, reform-minded and accomplished governors. Now serving his second term as the 39th governor of Minnesota, Governor Pawlenty has brought increased accountability to state government, held the line on taxes, improved K-12 education standards and made Minnesota a leader in energy reform.
Governor Pawlenty grew up in South St. Paul, Minnesota. The only child in his family to graduate from college, he attended the University of Minnesota (B.A., J.D.) and practiced law in the private sector. His public service career includes serving as a city councilmember and ten-year member of the Minnesota House of Representatives, including four years as House Majority Leader.
As Governor, he has balanced Minnesota's budget three times without raising taxes, despite facing record budget deficits. Governor Pawlenty's most notable accomplishments include proposing and signing into law significant new benefits for veterans and members of the military; enacting a property tax cap, eliminating the marriage penalty and cutting taxes; toughening the state's education standards; reforming the way teachers are paid through a nation-leading performance pay plan; instituting free-market health care reforms that increase accountability and provide tax credits to encourage the use of health savings accounts; and implementing a plan to Americanize our energy sources by generating 25% of the state's electricity from renewable sources by 2025.
http://www.governor.state.mn.us/welcome/ aboutgovernorpawlenty/index.htm
He’s very conservative, not entrenched in DC politics and appears as though he’s done an excellent job for his state.
What are your thoughts?
I have been following the career of Tim Pawlenty from the time he was in the MN house.. He was sent to law school with the help of his 4 older siblings after his mother died of cancer when he was 16.. a promise they made to their mother.. He grew up 5 miles from me in the very blue collar South St.Paul, MN.. at the time they had the worlds largest meat packing industry....
If this is true.....Obama and Biden are in big trouble as anyone who knows Tim has seen him shred MN DFL'ers in debate after debate... He is moderate in my opinion and very adept at fiscal issues.. He had maintained the State of Minnesotas AAA bond rating despite the best efforts of Tax and spend DFL'ers to bankrupt us.
I hope this is true although We will miss having our goalie as Governor... He has stopped countless spending pucks over his term!
My fiancé and I met online (through a common-interest forum, not a dating site), and though he lived on the west coast and me on the east coast, we kept our long distance relationship going for 3 years (with frequent week-long visits).
When he proposed, I agreed on the condition that he move here. I was not willing to take our relationship any further until I was sure we could be together.
Recently, he made the move from California to my hometown in Georgia, and shortly after announced that he would be asking me to marry him to his family.
Since he moved here, I've felt like his family has resented me for taking away their pride and joy. And while his parents have always been very gracious and kind to me, his extended family (with whom he is very, very close with) has been quite cold. They've said very hateful things about me and I've had the unfortunate opportunity to overhear these things more times than I care to remember (though they don't know). I've always taken it in stride, realizing that it must be hard to be away from your loved one. To his credit, my fiancé has tried his best to shield me from these awful comments and has lectured his family on their hurtful speech--but this has done nothing to stop them.
After our engagement, my fiancé sent out pictures to all his family along with a thoughtful note about our love and his proposal. Unbeknownst to his family (I suppose), I was included in on this email which became a party line of sorts. All of his relatives responded and conversed with one another--each response being sent to everyone on the list. Comments ranged from "she looks pregnant in that photo" to "the only reason he'd ever move there would be because she's pregnant." and many other hurtful things that my pride will not allow me to repeat. And for the record--I'm not pregnant.
How should I handle this?
Should I respond to them? Should I ignore them? Should I make my fiancé speak with them (though this has been very ineffective)?
I really don't want to burn any bridges or keep them out of our lives, but I can't help but feel hurt by these comments. Is this some kind of strange hazing/initiation practice among in-laws?
What is the most gracious and tactful way to deal with this assault on my character?
I can understand how you feel, and you might not like my suggestion. Since they seem to be spreading these rumors via the internet, then "catch them" at their own game. I would make a new email address so they still won't recognize your original address that he included. (It will keep you from being left out of future communication if they don't know which address is yours.) You are going to "reply" to this round-robin email that has been circulating.
With the new address, I would write a note and mass mail it to everyone on the original list. I would write them a "sweet" note that says something like:
Dear Family,
Just wanted to set the record straight that I'm actually not pregnant and thought you would be happy to be notified of the information. Looking forward to seeing all of you at the wedding.
Respectfully,
(sign your name)
They will have a massive coronary and you haven't done anything ugly.
New Shingle-Hangers get hung out to dry « Big Debt, Small Law
Scammers recognize that the victim who has just been scammed is more likely to fall for scamming attempts than a random person. Often after a scam, the victim is contacted again by the scammer, representing himself as a law enforcement officer. The victim is informed that a group of criminals has been arrested and that they have recovered his money. To get the money back, the victim must pay a fee for processing or insurance purposes. Even after the victim has realized that he has been scammed, this follow up scam can be successful as the scammer represents himself as a totally different party yet knows details about the transactions. The realization that he has lost a large sum of money and the chance he might get it back often leads to the victim transferring even more money to the same scammer.
News
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The rest was financed through the university's line of credit. And therein lies the problem for some. According to the Chronicle of Higher Education, and more »