Thread: Secrets of Negotiating Credit Card Interest Rates

BT1,

You mentioned:

1. Not complying with the Federal Truth in Lending Act and Regulation Z 226 et seq.

2. Charging a "fee" that is not allowed under the express terms of the contract.
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My Questions:
a) which part of Reg Z is not in compliance by "most banks?"
b) can you give examples of the "fees" that would not be allowed?

I'm formally trained in credit/lending and consider myself an expert with respect to credit reports and how to play the game.

Clearly you know whereof you write. I spent 2 hours on the phone with AmEx tonight. Very nice 2nd rep (when I asked first guy for supervisor). Said he was in "Account Management" I think, but am not sure. After a lot of back and forth, he kept with the line that they NEVER waive any of previously accumulated interest and that he couldn't lower our interest rate (12.24%) but could only offer us a hardship program where we'd get 0% for 6 mo.s and 9.99% interest after that, BUT! We would not be able to use the card at all for the duration.

I'm just trying to negotiate getting the balance reduced or the interest rate down. We've been 100% on time with payments and loyal customers but have accumulated too much debt. I can actually pay it off now, but want to get them to offer something on their end. Should I believe guy #2 - that there's nothing more they can do?

Clearly you know whereof you write. I spent 2 hours on the phone with AmEx tonight. Very nice 2nd rep (when I asked first guy for supervisor). Said he was in "Account Management" I think, but am not sure. After a lot of back and forth, he kept with the line that they NEVER waive any of previously accumulated interest and that he couldn't lower our interest rate (12.24%) but could only offer us a hardship program where we'd get 0% for 6 mo.s and 9.99% interest after that, BUT! We would not be able to use the card at all for the duration.

I'm just trying to negotiate getting the balance reduced or the interest rate down. We've been 100% on time with payments and loyal customers but have accumulated too much debt. I can actually pay it off now, but want to get them to offer something on their end. Should I believe guy #2 - that there's nothing more they can do?

Thanks, good to know this the tips for negotiating credit card interest

Jeff,

Your right on the money!! Glad to see that someone is giving advice that really knows how the banks work.

Scott

Kitdiva,

There is not much more they can do for you is correct. The hardship plan is great also. It's called the "Care Program". Like you said, you have to give up using the card for 1 year. If you can take advantage of the 0% for 6 months and payo off the card in that time frame. If you need to use the card 12.24% is not bad for today's rates.

Discover does something like AmX, they will go to a 9.99%/12 months

The posts are very helpful, Thanks to all. I never thought that if you take advantage of the low rate credit cards, there is a possibility that you will be branded as a "rate surfer"? Credit card users, of course would like to take advantage of these types of offers in order to save and maximize the use of their credit cards. Well, now that I know, I'll remember all what was discussed in this thread. Thanks.