WaMu Visa charging 26% interest, refused to lower rate
I’ve been ignoring that outrageous interest rate for half a year. I knew the likelihood of a “bad ending” if I called them. But, as I was paying my bills and had a horrible week (Focus discovery issues, Equifax VERIFYING a client’s collection after his 2nd dispute and sending the collector’s deletion letter, etc. etc.), I decided to make the call. How much worse can it get?
I was on the phone for 38 minutes. The first person was totally clueless and gave me a lot of false info, such as that I had until October to close the account and keep the old terms. In fact, I would have had to close the account in June. But, that’s neither here nor there. Not only did I not find out until after the deadline about the change in rate because I pay my bills online and there was NO notice at all, but I did NOT want to close the account.
I finally asked to be transferred to a supervisor. She explained that my rate increased due to my FICO score. According to their May notice, the increased rate was based on my TU report. Interestingly, I just recently posted my TU FICO scores as provided by WaMu (a former Providian account) at Another reason for the subprime crisis—my TU FICO scores for the last year
Accordingly, my score was 659 in May and in October it was 702. I’m not aware of any changes other than inquiries and accounts getting older.
I have no late payments, charge-offs, collections, judgments.
So why am I paying 26% interest?
I’m a high credit risk according to Fair Isaac. She told me that it has nothing to do with me personally, but people with my score tend to default more often. So they decided to increase my rate by about 125% and they almost doubled the minimum payment.
In 1/07, my rate was 11.74% with a $154 minimum payment.
In 9/07, my rate was 25.99% with a $278 minimum payment.
Obviously, it is more likely that I will default after the increase. And I got so angry, I finally told her that they won’t see another penny if they didn’t reduce the rate to the 11.74%. She wouldn’t lower the rate.
And that’s what I was afraid of. As long time readers know, I’ve spent years in court to get the credit I deserve. And if I stop paying WaMu, other credit cards will increase their rates. Most are also quite high, around 20%, and I should really contact them all to request the rates that I had earlier this year.
It’s so aggravating to have them tell you how they have the RIGHT to change the terms. And my only recourse is to invoke my right to stop paying them.
Credit scoring doesn’t predict defaults, but CAUSES defaults.
I’ve had the same amount of debt since late 2006, the money went to building my house and to litigation. I doubt I could qualify for a mortgage even if I was able to finish my house, which I can’t because I’m about $30k short (if I do most work myself). I just don’t earn enough. Just recently I decided to finally start an affiliate program for CreditFactors, but that is a lot of work too. Please contact me if you’re interested in being a commissioned affiliate/marketing manager.
Even if I continually work on personal consultations, I’m limited to about $2,000/month from consulting income, since I can only work with one new client at a time and the BEST case scenario is 2 new clients/week. With some clients it takes an entire week to get done because they’re slow to respond. So I can’t just increase my income.
But, I still have a plan, have $22k coming from the sale of my old place next July and chances are I’ll get some $$$ from my lawsuits, IF I have the cash to properly conduct discovery and as long as I have the cash and time to file appeals.
Just last week I got checks from Capital One with 2% and 5% rates for 3 of my 4 Capital One accounts. They average rate is around 20%, but I can’t use the checks until I pay at least one card off, it takes $7,500. Offered the buyers of my old place a 20% discount for a partial prepay, but apparently they don’t have the cash right now.
So I decided to sell the note at a discount, only to find out that Capital Title screwed up and the due date on the note is incorrect.
If they CAN screw it up, they WILL screw it up.
The entire escrow was a nightmare. Been waiting for a week to get the corrected note. That was another aggravating call, with that obnoxious idiot at Capital Title telling me that it did not matter. Only when I asked the guy whether HE would buy the note as it is, he finally offered to get it fixed.
It would probably cost me at least $5k for the discount, but I thought it would be worth it, being able to refi $20k with Cap One at this low rate and then try to get a little closer to finishing my house and pay for depositions.
I have a choice:
Pay for depositions or pay the credit cards. And it’s not even an all or nothing type situation. I would definitely want to keep and eventually pay off Advanta. They only offer business cards and they still only charge me 7.99%.
That card is maxed out too, but I feel that they DESERVE to get paid as long as they appreciate my payments and keep my interest rate reasonable.
In case you’re wondering, I really have nothing to lose. There’s nothing they can take from me. I’m not obligated to work 14 hours a day and 7 days a week.
I’ll have to work myself up to reviewing the recording of the WaMu call and then I’ll submit my written request for a lower rate. I’ll send out a press release and hopefully motivate others to also stop paying.
I mentioned in my WaMu call yesterday that there must be 10 million people who could file for bankruptcy right now. She acknowledged that this was probably true. Now that I have time to think about it, the number is probably much higher.
The ONLY way to get unscrupulous banks like WaMu to STOP charging these outrageous interest rates is to have millions of their customers default on credit cards.
The bankers take advantage of THEIR right to charge these insane interest rates and we have to take advantage of OUR right to not pay them.
MASSIVE defaults are the ONLY way to change this corrupt credit system.
I’ve posted here how they SETTLE delinquent and charged off accounts for huge discounts. They know that they can’t squeeze blood out of turnips.
Since when does a “consumer advocate” encourage consumers to make wholesale defaults on their obligations?
Christine, you should really see: http://en.wikipedia.org/wiki/Tortious_interference before dispensing more advice that encourages defaulting on credit obligations.
Your guessing games are just not worth the trouble to you or others anymore. Simply put, you are harming others with this misinformed advice. Perhaps you and your “clients” should seek the advice of an attorney.
You must be new to this site, I’ve been encouraging readers to discharge their debts for years!
Capital One bitterly complained about it in one of their court filings.
Perhaps you should be a consultant to the bankers?
Apparently you know the law better than their lawyers. They will be so impressed and I’m sure they’ll write you a fat check 
I can’t say it often enough:
If you qualify for bankruptcy and you don’t expect NEW obligations any time soon (you can only file every 6 years), file for bankruptcy!
And if you don’t own real estate and you have nothing they could attach judgments to (can’t have a bank account) and they can’t garnish your wages (state law), you don’t even have to file for bankruptcy. Simply stop paying, change your phone number, let them get their default judgments. Never pay for another credit report again!
And if you happen to run into a large amount of cash unexpectedly, you can settle the judgments for pennies on the dollar—IF you need to because you want to buy a house.
An excellent credit rating is tremendously valuable. But, MAINTAINING that flawless credit rating is a TON of work and incredibly expensive!
Not only do you have to pay these outrageous interest rates, but you have to pay bills you do NOT owe! Or, in the alternative, you have sue, sue and sue again.
Each individual has to decide whether the cost of flawless credit is worth the expense. And that’s especially true because:
PAYING your debts does NOT equal good credit.
I’m “high risk.” According to Fair Isaac and WaMu, I DESERVE a 26% interest rate.
It’s simply a business decision.
WaMu looked at my credit and made the business decision to increase the interest rate to 26%.
Unfortunately, too many people don’t analyze their finances like a business. It’s not that hard, take the amount you owe and then add to it the annual interest. THAT is what your flawless credit rating costs you in $$$, plus the adverse side effects including stress and anxiety, family problems, divorce, etc.
I DOCUMENTED that my flawless payment history was not appreciated—not by Fair Isaac and not by the bankers.
Last year I got several home owner insurance quotes and the premium from the same company increased tremendously as I owed more.
If you owe a LOT and your credit cards are maxed out, your credit rating is likely shot and can only improve if you discharge your debts.
There’s nothing like being FREE again, not to have to worry about how to pay the bills or whether you can afford to send your kid to music lesson or whatever.
Take care of yourself and your family. Credit cards come LAST.
I’ve had clients who took my advice and discharged their debts. We did the usual after bk disputes. They were qualified to purchase a home only two years after the bk and NOT for a subprime loan, but for the low fixed rate mortgage.
Food pantries struggling with shortages
Demand is being driven up by rising costs of food, housing, utilities, health care and gasoline, while food manufacturers, wholesalers and retailers are finding they have less surplus food to donate and government help has decreased, according to Lisa Hamler-Fugitt, executive director of the Ohio Association of Second Harvest Foodbanks.
“I’ve been doing this for 20 years, and I can’t believe how much worse it gets month after month,” she said.
Diana Blasingame has lately found herself having to go to a free food pantry once a month to feed herself and her teenage daughter.
“I’m pretty good at making things stretch as far as I can, but food is so high now and I have to have gas in my car to do my job,” said Blasingame, 46, who earns $9 an hour as a home health aide. “I work full time, but I don’t have health insurance and sometimes there just isn’t enough to pay bills and buy food.”
“We have food banks in virtually every city in the country, and what we are hearing is that they are all facing severe shortages with demand so high,” Ross Fraser, a spokesman for America’s Second Harvest — The Nation’s Food Bank Network, the nation’s largest hunger relief group, said Friday. “One of our food banks in Florida said demand is up 35 percent over this time last year.”
The U.S. Department of Agriculture’s annual hunger survey released Wednesday showed that more than 35.5 million people in the United States were hungry in 2006. While that number was about the same as the previous year, heads of food banks and pantries say many more people are seeking their assistance.
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Of course many of the 35.5 million people referenced above already filed for bankruptcy or stopped paying their credit cards long ago. However, it’s important to see the INCREASE in poverty.
Many millions have NO savings.
I also have many clients that DO have savings in their retirement accounts and unfortunately some even used their retirement funds to make mortgage payments on homes OVER MORTGAGED by 20% or more. Often, the inevitable foreclosure is only delayed by however many months it takes to use up all the retirement funds.
People have to start making business and lifestyle decisions.
Why are you commuting to your job every day, barely making the bills?
Is it what makes you happy?
If not, consider a change in lifestyle. Grow at least some of your own food. Consider relocating or shared housing.
There’s no law requiring you to support this corrupt system, working crummy jobs until “something” happens that forces you to beg for food.
Most people are horrified of change or anything new. But for those of you with half a brain and a little guts, there are alternatives. Bankruptcy is the perfect opportunity to start a totally new life.
I know, I’ve been there, I did it.
The problem with bankruptcies is that when one person cheats the lender out of money, the lender has to make up for the loss. The losses from people’s debts in bankruptcy is then passed on to OTHER CONSUMERS in the form of HIGHER APRs FOR EVERYONE.
Bankruptcy is a way to cheat the system, foisting irresponsible debts upon others in the form of predatory rate hikes.
Few people could be so stupid and expect me to cheerfully pay 26% interest on a credit card so that THEY can enjoy a LOW rate!
Posting here is a PRIVILEGE and I do expect an IQ above 60. In the future, I’ll delete postings that don’t qualify.
Americans didn’t become independent because they sued the Queen,
Hitler wasn’t stopped by a court order
and the slaves weren’t freed because they voted for freedom.
What would happen if 10 million people stopped paying their credit cards all at once?
That’s only 5% of adults, but since most people have more than one account, it might cause the bankers to consider to take a look at credit scores.
I think there’s a chance they’d VOLUNTARILY stop using FICO scores and get back to common sense underwriting and FAIR rates for all.
Wamu is sneaky and people should not do business with them.
I had a wamu credit card that was 30.9 percent.
When trying a few times to get a lower rate, it was useless.
I had several thousand credit limit with only a 54.00 balance. I told them I will not use this card until they reduce the interest.
On 1/14/08, instead of reducing my interest, they reduced my credit limit to $256.00. Sneaky of them not letting me know. What if I used the card and then was over the limit.
I called them up and told them to screw off and closed my account with them.
Never will I do business with them and I understand that they are looking for someone to buy them out.
