WAMU / Providian They raised my APR by over 10% then could not give me a straight reason why and finally just said they couldnt do anything about it. Dallas, TXDallas Texas

I have been a long time customer of WAMU/Providian. They recently raised my APR to 27.99% (raised over 15%). When I asked why they first said:

"Thank you for your recent e mail regarding your account.
Our records indicate your account?s interest rate (Annual Percentage Rate or APR) was increased in accordance with the terms of your Account Agreement (including any Change in Terms).

The Account Agreement provides that APR increases may occur if a cardholder?

s account is not kept in good standing. For example if an account is past due, overlimit, or has incurred a non sufficient funds fee, one or both of the following may happen:

1. An APR Increase on any account balances up to the disclosed maximum default APR.
2. An end of any introductory or promotional APR.
Unfortunately, we cannot reinstate your previous interest rate or lower your current rate at this time. Please keep your account in good standing to help avoid APR increases. By doing so, your account may become eligible for future programs that may reduce your APR."

I then looked over my account history to collect proof that my account was always in good standing. I emailed them back providing dates that my payments were due and dates and amounts I paid and requested that they tell me exactly how my account was not in good standing.

When confronted with that they came back and said:

"Thank you for your recent e mail regarding your account.
We apologize for the misinformation that was provided to you in the previous e mail.

Please be advised your Annual Percentage Rate changed because of the Change in Terms you received in November 2007.

We periodically review our business policies and practices to ensure we re doing the best job we can managing our business and serving our customers. In this case we decided that, given the economic trends of the past year, we needed to tie our rates more closely to the market.

Please be informed that we have mailed a copy of the change in terms for your records. Please allow 10 to 15 business days to receive. We apologize for any confusion this matter may have caused you.

If you have further questions or would like additional information, please e mail us through our secure Contact Center or you may also call our Customer Service Department toll free at 1 800 356 0011. Representatives are available to assist you 24 hours a day, 7 days a week. "

I then called to request a clarified reason for the change and request that they lower my APR. They advised me that it was because after reviewing my account they just decided to raise my APR (even though I have been a customer for 5 years, I am always under my limit, always pay on time, and always pay over the minimum due.) They told me that there is nothing they can do at this time and that they review accounts every so often and will let me know when they can lower my APR. Needless to say I will be paying off my card and closing my account. I also sent them an email advising them that I am a very unsatisfied customer and will tell everyone that will listen that this company will rip you off any way possible and will give you any reason possible (EVEN IF ITS INCORRECT INFORMATION) to just make you stop complaining for the moment.

I feel that it is ridiculous that my APR on this account has increased significantly, yet all of my other credit card companies have decreased my APR by between 2% & 10%. It is companies like this are creating our nations current economic situation and are causing people loose their homes. I do not know who in their right mind would see fit to raise a persons APR during such a tough economic time especially when the president him self is asking companies to lower their APRs. Its almost like the company is trying to force people to default.

Danielle
Rosamond, California
U.S.A.

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