PNC, formerly National City, sent us a letter this week that they are raising our interest rate on our credit card. The reason for our rate being raised included this reason:
“Limited relationship with National City/PNC Bank”
PNC is now owner of National City (where we originally had our card). I was wary of PNC taking over our account because we banked with them previously and their fees were brutal and their service was awful.
We’ve been with National City for over 6 years. First with a home equity loan for our previous home, and with this credit account that we have had for the same 6 years. I think 6 years is a long time, but apparently they do not.
This is the 3rd time that a credit card company has raised our rates in the last 6 months. Both other times I fought back and won. I detailed my experience with Chase raising our rates, and then reinstating them, and then reducing our credit limit.
Why not just pay it off? We are working on paying off our credit card debt. Our goal is to be free of all our debt (that isn’t our home) in December 2011. This card is not at the top of our list on our debt snowball, but it may have to move up.
It seems every time we take a step forward, we get penalized by credit card companies. Higher minimum payments, higher interest rates, and lowered limits. It’s enough to make me want to forgo credit cards for good. Like Matt from Debt Free Adevnture, I’m considering using Lending Club (a peer to peer lending organization) for a credit card consolidation loan to pay off our cards once and for all.
Stay tuned, I’ll let you know if I have success with PNC.
Kelly
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PNC had me intrigued a few years ago with their Virtual Wallet account, but they had so few branches in our area that we passed. It's unfortunate, but your experience is definitely not unique, and it's especially tough because you're still getting out of debt and can't "just leave."
Fight the fight when you can, and if it makes sense, I think a pay-off loan might be the way to go. Just stay true and keep paying it down.
While I'm not a fan of how most (if not all) credit card companies do business, I honestly don't fault them for this. Most folks (myself included) tend to forget that a credit card is basically an automatic, on-call loan. Since they're lending the money, they have the right to set the terms. Do I like it? No. But the fact remains that it isn't my money to begin with: it's theirs.
I know it is their right, but it bothers me that they all seem to be doing it in anticipation of the new legislation. I'm happy to be paying them off so I don't ever have to feel obligated to credit card companies again!
We dont have any credit cards but use PNC as our normal bank. I really need to start paying attention to our bills more. I need to get my but in gear. I know I am loosing money left and right.
The easiest way to track it is to sign up for Mint, and have them flag any fees. If you don't see any, I wouldn't worry about it. Personally I'd rather bank with a credit union. They have great customer service, and good interest rates.
Hey Kelly! I posted a story about this just a few weeks ago on RoA. I've gotten letters from all but one of my credit cards saying the exact same thing! It's infuriating, and I've been meaning to start contacting people – state attorney general, congressional reps, etc. to complain, but I haven't found the time yet. Please let me know what you find out, and I'd be totally willing to help you out on my end. The one step forward, two steps back applies to us, too, and our options too are very limited.
I think that contacting people would be great. It is one of the reason they enacted new laws, but it seems the banks are taking that as a sign that they should bleed consumers dry now since the restrictions will be tighter later.
It is frustrating isn't it? 2 of our minimum payments have gone up nearly double which means it will take us that much longer to get out of debt. My only solution is to make more.
I MUST tell you what happened to us over the summer. My husband suddenly paid down about $20,000 in credit card debt on HIS cards – Cards that he had before we got married, and that my name was nowhere on. No, we didn't hit the lotto, Mother-in-law decided she wanted to be our bank. So instead of paying interest, she helped us pay them off and now we pay her interest free.
A month later I log in to MY PERSONAL (not shared) Citibank checking, and they CHARGED ME a $45 "account maintenance" fee because my husband no longer had a balance with them. They did NOT charge him anything, and when I called to complain they said that at some point, MY account had been switched to the type of checking that required a $6000 balance (either cash, or in debt) to stay fee-free. But I never EVER had that kind of money in the bank, and my 3 year old checking account had always been free because I had direct deposit. I would never have switched to an account that required any type of balance. THEY did that when they saw my husband's debt go down, and I knew nothing about it.
I asked them how in the world my husband's credit card balance could have anything to do with MY personal account anyway, and they said that because we live in the same house, all our balances/debt is considered the same by them. Can you believe that????
Insert LOTS of yelling on the phone, and threatening to pull ALL FOUR of our accounts (two personal, one joint, and one money market) from the bank unless they removed the fee – before they agreed a "one time courtesy" and finally took it off – acting like I was some low life and they were doing ME a favor!
I cannot understand how any of that is legal, but totally happened.
Kelly, sorry to hear… I suggest doing the debt consolidation loan only if you can get a lower rate with LC. If you can get a rate that is lower than all other individual debts, then pull them all in. If the rate is higher than any individual debt… leave it out of the consolidation.
PS… it's "DFA – DebtFreeAdventure" not "DBA.
Cheers!
Fixed it! Sorry!
I know many people can't stand BoA. Your story is only one of many I'm sure!
Did your roommate leave PNC when the switch happened?
Unofrunately, no, for a few reasons. But he's a little stuck in his ways, and only has about $60 in the account. Not sure why he wants to keep it open, but he is the way he is.
Lara, I don't share numbers, but we'll just say it's not getting paid off overnight.
It has happened to me with Chase and American Express as well, it seems like all the CC companies are trying to increase rates now before the new legislation is passed.
Have you considered a home equity line of credit, or it that not an option?
Not an option, unfortunately. Peer to peer lending is looking better and better though.
Hopefully you can do what Matt Jabs did and consolidate it all at Lending Club. Let us know if you do–I'll invest.
-Erica
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