Both cards were close to their limits but I didn’t realize that although the statements showed several dollars (not many) available, USING these monies would put me over my limit once the service charges were added.

A couple of late fees later and the interest rates climbed to 23 and almost 30%! I paid the fees and called to see about a rate reduction and applied for their “hardship” assistance and was denied both. I was told that if I make my payments “on time” for the next six months I would then be eligible for a “one-time rate reset”.

So I called today and go figure, they are not considering any rate resets until after the first of the year!

I have ZERO late payments on my credit history which was almost 800. It is around 700 now for some unknown reason.

I have had these cards for years-

Me too. American Express just raised me from 15% to 29.9% on a closed account!

First, there is no cap on interest rates in the credit card reform bill. There was a measure to cap interest rates at 15%, but there wasn’t enough support in the U.S. Senate to pass it.

Second, your credit card interest rate can still be raised to whatever default rate is listed in your credit card contract should you be late with your payments.

Chase is doing precisely what the bill hopes to stop, which is raise rates at any time for any reason.

They know they will not be so easy to jack up interest rates by over 15 percentage points without some reason after February of 2010, so they are doing it now.

The truth is that, if you are late with payments for 60 days, then your credit card company will be able to raise your rates. However, one late payment - and especially a late payment to another credit card company - will no longer be sufficient reason to jack up rates on an account that is being kept current.

So it’s true that the reform bill of 2009 does put limits on what a credit card company will be able to charge.

According to a May 21, 2009 article by the Wall Street Journal:

“Consumers also wouldn’t face a retroactive interest-rate increase on existing balances unless payments are 60 days overdue. Even after that rate increase, a consumer could get the old rate reinstated by paying on time for six months.”

So it sounds like Chase is just picking your pocket while it still can.

Note, also, that Chase may also be trying to get rid of your account if they are not making enough profit from you, such as if you are not charging enough.

Thanks for the comment, Lauren. I’m going to blog more about this.