Whereas the party of the first part is, like, totally boned

[unixronin]

So sometime in the last few days, a "pre-approved" platinum MasterCard application showed up in the mail.  I just today got around to looking at it.

For the most part, the terms really aren't bad at all.  Adjustable rate, of couse, 6.74% spread above prime rate for purchases (currently 14.99%), 0% introductory rate on purchases and balance transfers for the first 12 billing cycles, no annual fee, 2% minimum finance charge in any billing cycle in which a finance charge is due.

There's this one half-paragraph in the disclosures that bothers me, though:

"We have the right to change your APRs, fees and other terms at any time, for any reason including, but not limited to, any change in your credit history, credit obligations, account performance, use of your credit line with us or any credtor, or our financial return."

(Emphasis mine)

Now, correct me if I'm wrong, but that basically translates to "Once you sign the agreement, you're boned.  We can do whatever we want, whenever we want, for whatever reason we feel like including plain naked greed or you like, actually using your card, and we can require you to supply the anal lube."

Most credit card solicitations we've received in the last few years I've thrown straight in the trash after a cursory glance at the rate disclosures.  Is the above as egregious as it seems to me, or is that simply de rigeur for all credit solicitations these days?

Comments

[skellington.livejournal.com]

Pretty much standard these dys.

I especially like the "Fixed" rate cards that have the same statements.

Most credit card companies are now pulling your credit regularly, and if they find anything they don't like on ANOTHER COMPANIES ACCOUNT, they jack your rate to something absurd.

Which of course means that if you have a single bad month, you could be in a world of hurt for the following months when all your other lines of credit abuse you.

Capitol One is also reporting your maximum credit used as your credit line, making it look like you've got your card max-ed out all the time.

And, of course, based on the above text, they could add a $1000 annual fee at any time... Don't you love it?

[unixronin.livejournal.com]

Yeah, that was about my thinking. Of course, as I recall, they're required to give you the option of rejecting the new terms, not using the card any more, and paying off the balance under the existing terms.

As for Capital One, they always have been bastards anyway. I always find it amusing that their ads feature hordes of marauding, plundering barbarians thwarted by a Capital One card, while in practice Capital One has largely established its business upon preying on consumers with bad credit.

[skellington.livejournal.com]

The other thing they're doing (Capital one, specifically) is to give you another credit card when you go over-limit rather than raising your credit limit.

Then, if you max it out, you can pay 2 over limit fees every month!

Some people have as many as 8 cards, all over their limits.

[nephthys510.livejournal.com]

This is part of the brilliant Bankruptcy bill from earlier in the year. You may have noticed that around October your minimum payment doubled, or your interest rates went through the roof.

Thank you Republican Congress who pandered to the credit card companies on this one.

Grab yer ankles.

[unixronin.livejournal.com]

BOHICA

[smandal.livejournal.com]

Who carries a balance on a credit card?

You are more likely to get financial consistency and acceptable customer service from your neighborhood loan shark.

[richspk.livejournal.com]

Is the above as egregious as it seems to me, or is that simply de rigeur for all credit solicitations these days?


I think the answer is "yes".


I shall now await your triumphant financial return.

[unixronin.livejournal.com]

I shall now await your triumphant financial return.

We're working on it. ;)

[callahanshappy.livejournal.com]

You may wish to adopt my method of dealing with credit card companies.

If I have a relationship with the bank, I simply shred the offer if it isn't something that I want and put it in with my recycling.

If I do not have a relationship with the bank, travel club, annoying insurance company, or political organization, I simply shred the information and return it to them in their pre-paid postage envelope.

I do wonder who is using the tracking number that shows up on some of the envelopes along with the warning message that it is against federal law to tamper with the contents. The same bank has sent six to ten offers a year to me for the past six years.