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Credit Card Interest Rate Hikes
MyMoan is taking issue with Credit card Companies who are hiking interest rates to obscene levels for customers who maintain a balance on their cards. These customers are already highly profitable to the Card Companies. Their Justification given is often that the customer “signed a contract agreeing to variable rate”. To the government it has been explained by card companies that these customers may be posing a greater risk of defaulting on their payments.
The Ethical Approach
Reducing interest rates and in some cases increasing the minimum payment proportionally, would REDUCE the risk to Card Companies, without creating any additional hardship to customers. The fact that they have not adopted this approach clearly demonstrates that, either Credit Card companies are plain stupid (unlikely), or that they are simply profiteering by doubling interest on existing card balances where payments are being already met.
Action is Needed Now
MyMoan believes that this is an abuse of contract, normally understood to mean a variable rate in line with interest rate or general market trends. Such abuses of contract should be investigated by the Government regulators and action taken against the card companies involved. This abuse may also give people the legal right to leave their contract citing ‘unfair contract terms’ and thus leaving only the balance to settle. (Untested)
If you have experienced this problem please contact MyMoan now and add your name to our list of complainants.
Reducing interest rates and in some cases increasing the minimum payment proportionally, would REDUCE the risk to Card Companies, without creating any additional hardship to customers. The fact that they have not adopted this approach clearly demonstrates that, either Credit Card companies are plain stupid (unlikely), or that they are simply profiteering by doubling interest on existing card balances where payments are being already met.
Action is Needed Now
MyMoan believes that this is an abuse of contract, normally understood to mean a variable rate in line with interest rate or general market trends. Such abuses of contract should be investigated by the Government regulators and action taken against the card companies involved. This abuse may also give people the legal right to leave their contract citing ‘unfair contract terms’ and thus leaving only the balance to settle. (Untested)
If you have experienced this problem please contact MyMoan now and add your name to our list of complainants.
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