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Sunday, November 25, 2007

You and Credit Card Due Date Roulette

It’s just a matter of time before you get stung by the banks, especially if you happen to have a very low credit card interest rate. The banks are out to get their pound of flesh from you - the conscientious consumer!

Last February it was Bank of America that changed its due dates without warning and just his past October Chase Bank changed its due date without warning.

When a bank pulls this kind of stunt it generates late fees and causes your interest rates to jump to the maximum. How nice for the banks!

Here’s the reason they can do this and get away with it. It’s called the Universal Default Clause. Pay one credit card late and suddenly all of your credit cards make an outrageous jump in interest rates!!! Here’s an excerpt from an informative article Pay one bill late, get punished by many by Bill Burt.

"Universal default complaints are definitely on the increase -- at a disturbing rate," says Paul Richard, executive director of the San Diego-based non-profit Institute of Consumer Financial Education. "More than one-third of major credit card issuers now say they act on these clauses regularly." A recent survey found that a staggering 39 percent of credit card issuers said they apply the rule to customers, even if they had no late payments on their own card.

One false move could be fatal

Gerri Detweiler, author of The Ultimate Credit Handbook says, "These default clauses are getting scarier by the minute. If a credit card offer includes a universal default clause, you need to know what you're being set up for. If you're one day late on any payment to any creditor, you could be subject to a default rate as high as 29.99 percent on many others . . .

Don't let it happen to you

You can head off any problems simply by meeting all your monthly obligations not just on time, but at least a week or more ahead of the payment due date. Some counselors advise getting into the habit of paying bills when you receive them. . ."

Naturally, the banks have already figured out that you are conscientious and that you probably pay your bills ahead of time.

They don’t want you to pay ahead of time or even pay on time!

They want you to default!!!

That’s why they suddenly change the due dates without any warning. Oh yes, they will claim that they sent you a letter that you never got. And then if you tell them that all of your banking is done online and that you use electronic bill pay, they will switch and say that they sent you an e-mail, which you never got. It doesn’t matter. It’s all a game to them and they hold all the cards!

If you plan to win at this game, perhaps you will need to pay your credit card minimum at least twice a month? Or better yet – get rid of your credit cards!!!

Last February, Faultline USA posted a n exclusive report called “Bank of America’s Latest Credit Card “Missed Due Date” Scam”. That report is still one of the most read articles on Faultline USA. Because this kind of questionable banking behavior is happening with greater frequency, it’s an important read! The first-hand report of a happy solution may be worth its weight in gold to you.

View also "Secret History of the Credit Card" . . . “In this one-hour report, correspondent Lowell Bergman uncovers the techniques used by the industry to earn record profits and get consumers to take on more debt.”

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