credit question

[jefa]

received letter in the mail today from Bill Me Later.. they are raising my fixed rate 2%

as I scan the letter i am :Q to see there is no opt out

how can they raised a fixed rate with no opt out??

then I see this in a creditboards post

Fixed rates aren't fixed
A fixed rate means the credit card company has to give you 15 days notice before raising your rate. You can call and ask them to lower it, but they don't have to do it.

Is this true?

If so.. what kind of scam is a "fixed rate" and why is this legal?

 

[SoulAssassin]

fixed rate means it doesn't adjust with the prime rate...also what kind of ghetto ass bank is bill me later? get a real card

 

[vi edit]

Originally posted by: SoulAssassin
fixed rate means it doesn't adjust with the prime rate...also what kind of ghetto ass bank is bill me later? get a real card

Exactly. Fixed means it isn't tied to the prime rate. They gave you the 15 day notice, that is all they are obligated to do.

 

[jefa]

hehe it's not a credit card

it's a line of credit.. newegg offers it

 

[jefa]

well if that's the case Im ok cause they only gave me 11 days notice

 

[jefa]

should I give them a taste of their own medicine and sue for some crazy amount for improper notice?

 

[Viper GTS]

Bill Me Later is run by Chase IIRC (Well, Household which is Chase), it actually sounds pretty convenient for sites that use it.

It is a real bank though.

http://www.chasepaymentech.com/solbilmelat.do

Viper GTS

 

[Vic]

You really have nothing to sue for. True fixed rates that can never change legally apply only to installment loans, i.e. ones with set terms up front. Credit card or line of credit, this is still a revolving charge account, and so the only thing "fixed rate" means it that it doesn't adjust according to some index, i.e. Prime, but can still be changed according to the disclosed terms and/or applicable law. Good luck quibbling over 4 days notice!