They are going to raise my interest rate 5 percent to 15.24%. I have not had a late payment. I generate around $72 in interest to them. I think the new credit card regulations made the banking industry pissed off. I am not able to close my account to keep the current APR, which I think highly of the Discover card when they offered this for my father. I am unfortunately going to balance transfer this balance off because it will cost me more money in the long run.
Sadly its a case of good intentions gone awry. The credit card reform act needs to be patched to mandate that customers could close their accounts and keep their current rate to pay off their cards. I am not going to spend a new dime on charges to make my balance high for them.
I found out more on this issue from another website. Damn AMEX, you take taxpayer money and then f**k your customer with it.
American Express was the only major credit card issuer that did not previously offer customers opt out options when rates were hiked. Come Aug. 20, that will change. AmEx is sliping some interest rate hikes in just in time to beat the Aug. 20 start-up of mandatory consumer opt out rights. CreditCards.com was contacted by several readers complaining that they had received notices of AmEx rate hikes that take effect Oct. 1, 2009, but that did not offer a chance to opt out. The readers questioned whether this was legal given the Aug. 20 effective date of the Credit CARD Act.
According to the Fed, issuers that provide notices of interest rate hikes and other changes BEFORE Aug. 20 do not have to offer the right to opt out — regardless of when the rate hikes actually take effect. Any notices provided AFTER Aug. 20 must include information about opting out.