Just an FYI for anyone that uses AMEX and does not pay their balance in full every time.
Just had a relatively large charge on my AMEX and literally within a minute of receiving an email that it came through from the merchant, I received an email from AMEX that my interested rate went up from 13% to 20%. I don't care, I pay it in full, but for anyone that does not pay in full all the time, or just once, that can be a decent amount of change.
And I am quite impressed at the speed they did it at. Technology rules.
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qcumber98
Pickled
posted: May. 24, 2012 @ 5:30p
After reading this thread, my interested rate went down from 20% to 13%
fw101
Silly Member
posted: May. 24, 2012 @ 6:41p
Doesnt the CARD Act require at least a 45 notice for interest rate increases and prohibit the increased rate to be applied on existing balances? Even for the folks who carry a balance, this might be moot.
scripta
Senior Member - 2K
posted: May. 25, 2012 @ 6:18a
Diiiid you shop at a "high risk" merchant? I remember a thread about not using your best cards at Wal-Mart or strip clubs or whatever it was.
acshen
Serene Member
posted: May. 25, 2012 @ 10:15a
Yeah I think scripta is right with this, if you are using your card at like thrift stores or the like you will get flagged
SUB
Tired Member
posted: May. 25, 2012 @ 10:19a
OP, you should probably specify what "a relatively large charge" means.
What makes you think this transaction has anything to do with the interest rate change?
It doesn't seem like an unusually large charge - above average, sure, but I think it's probably common for active card users to run a transaction in that range a few times a year.
Argyll
Senior Member - 1K
posted: May. 25, 2012 @ 2:07p
Did that email say the rate applies immediately, because the CARD act says significant changes in terms on accounts cannot occur without 45 days' advance notice? The only way they can raise the rate on existing balances is if you have a late payment or somehow violated the terms.
jerosen
Geeky member
posted: May. 25, 2012 @ 2:27p
I see no reason to conclude the two things are related.
People make $1000 purchases every day and if there was some sort of automatic change to interest rates triggered by large purchases then I'm sure we'd all know about it.
davef139
Senior Member - 3K
posted: May. 25, 2012 @ 2:34p
Was the $1000 through Amazon payments and charged as cash adv?
Revike
Senior Member
posted: May. 25, 2012 @ 2:43p
jerosen said: I see no reason to conclude the two things are related. The reason is that coincidences are boring and conspiracies are exciting ...
cpaynter
Senior Member - 1K
posted: May. 25, 2012 @ 2:55p
Argyll said: Did that email say the rate applies immediately, because the CARD act says significant changes in terms on accounts cannot occur without 45 days' advance notice? The only way they can raise the rate on existing balances is if you have a late payment or somehow violated the terms. That brings up an interesting question. If the cardholder has been paying his balance in full (as OP stated), then in fact the interest rate change (even though immediate in theory) will not materially take effect until the statement after the next one is issued. So, say his statement is cut on the 20th of the month. He makes the charge on the 22nd of May. That charge will not show up until the statement cut June 20, for which payment won't be due until July. When the July statement is cut, only then will the interest rate change be material. That's 58 days from the date of the charge, which beats the 45 day requirement, right?
Chris.
jojosung
Tired Member
posted: May. 25, 2012 @ 3:41p
I don't think it's the thrift store charge only.. but the habitual change of how cards are typically use. ie.. You normally shop at Saks with the card, all of a sudden you now shop in WalMart... whereas, if you normally shops at Macy's; Target; and WalMart.. more charges on WalMart won't make they change the APR.
BTW.. I've had over $4k charge oversea a couple time, and AMEX didn't change the APR.. however, I did inform them ahead of time of the upcoming charge.
wp746911
Senior Member - 1K
posted: May. 25, 2012 @ 6:11p
Dunno I shop at WalMart and every stupid cheap discount store there is. I make a lot of money, but I don't enjoy throwing it away- not gonna shop at neimen-marcus instead of WalMart...
huffboy
Broke Member
posted: May. 25, 2012 @ 8:54p
wp746911 said: Dunno I shop at WalMart and every stupid cheap discount store there is. I make a lot of money, but I don't enjoy throwing it away- not gonna shop at neimen-marcus instead of WalMart...
so you dont make a lot of money. if you make as much as buffet, tim cook or facebook guy.. im sure you wont be lining up with the masses at WalMart.
scripta
Senior Member - 2K
posted: May. 25, 2012 @ 11:40p
I don't enjoy throwing my money away either. That's why I don't shop at WalMart.
airblade
Handsome Member
posted: May. 26, 2012 @ 5:06a
Hookers and Blow always raise your rates.....................
BitemeIamtoxic
Non-toxic
posted: May. 26, 2012 @ 2:01p
Don't use it in Beloit.
RushnRockt
Senior Member - 3K
posted: May. 27, 2012 @ 1:40a
davef139 said: Was the $1000 through Amazon payments and charged as cash adv?
Just caught that I missed the "Payments" portion. You are 1 for 2. It was not a cash advance. The interest rate that went up was purchases.
jerosen said: I see no reason to conclude the two things are related.
People make $1000 purchases every day and if there was some sort of automatic change to interest rates triggered by large purchases then I'm sure we'd all know about it.
I don't make $1000 purchases everyday. I have not had a charge larger than $90 dollars on this card and its the first time I used it in 3 months. the card itself is 7 months old. May be it is indeed a coincidence, but a pretty fascinating. I don't see why you "would all know about it" if it is something they are experimenting with. AMEX has always being the "progressive" one when it came to negotiating risks, this isn't anything out of normal for them. This was also the first email communication from AMEX that I have received on anything other than payment due and payment made.
scripta
Senior Member - 2K
posted: May. 27, 2012 @ 2:30a
You still haven't answered whether the rate increase is effective immediately or in two months.
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