Wells Fargo is the latest bank to raise interest rates on its credit cardholders. The majority of the bank's credit cards will receive a 3% increase on interest rates according to South Florida Business Journal.
Cardholders who are effected by the increase should receive a 45-day advance notice of the increase along with instructions for opting out. If you decide to opt-out of the rate increase, your credit card will be closed and you'll have the opportunity to repay your balance at the lower interest rate. Wells Fargo isn't allowed to demand you repay the balance in full if you choose to opt-out of the rate increase.
Other credit card news:
Revolving credit card debt fell for the 11th month in a row. Balances dropped by 13.1% in August. Government data shows that the personal savings rate rose to 4.2% in July. Source: Washington Post
Bank of America tells the Feds it won't change credit card terms anymore until the new credit card rules go into effect. Discover makes a similar announcement. Meanwhile Chase says it doesn't plan to follow suit and Wells Fargo, as you read above, has already made an interest rate increase announcement. Sources: Wall Street Journal, CNN
A Nashville man has been arrested for hiring homeless people to look through dumpsters and trash for discarded credit card numbers. He allegedly used the credit card numbers to rack up more than $100,000 in credit card debt. This reminds of why it's so important to properly dispose of papers and receipts containing sensitive financial information. Source: NewsChannel5.com
I think we’ll see a flurry of rate hikes before year end.
just called Wells Fargo in response to my letter stating the rates go to 10.65% in December. I am currently on a promotional rate, asked to have my default rate held at 7.65%. Spoke with the first rep to answer the call, she could not help, so i asked for the Supervisor. Ended up with a “kevin” in Oregon. He was of no help despite my explaination of our many accounts, loans and all the years of Wells Fargo being our bank of choice. No reduction, just take it, or close the account. So i am seeing there a hardline approach, and am not pleased. Unless, as the previous commentor remarked, we see all banks giving the high rate treatement, I will be doing a balance transfer and WF can eat a bowl. I