Peoples Bank lures you in with a high limit, low interest platinum card. If you run it up, they look for an excuse (you are using too much of your credit available...a single late payment) to raise your interest rate. Raise it...from 14.99% to 27.99% (and that's not a typo ... almost 28%).
Fortunately, I am able to pay off the balance of over $8,000 from savings (and cancel the card) ... but if I couldn't it would cost me a small fortune in interest. Only the Mob charges this much interest. I cannot believe that is even legal.
Here's my letter.
January 30, 2001
Peoples Bank
Re: Your letter 1/23/2001
Dear Sir;
Thank you for informing me of your intent to increase the interest rate on my account to a rate most would consider usurious. While my balance has gone up, I have made substantial payments to the account, none of them late. In fact, I paid the entire amount on more than one occasion. Thank you also for informing me of a mistake on my credit report with Equifax. I will see that it is corrected immediately.
Fortunately, I am receiving a 6-figure bonus on February 8th, with which I was planning to pay off all the credit cards I maintain, as well as a car loan. I am so glad I will not have to pay you interest at the rate of 27.99%. As I mentioned to your representative yesterday on the phone, your credit card has been cut in two and placed where it belongs (the trash).
I'm sure you will be glad to hear that I will be posting this letter on as many consumer sites as I can find to share my experience with other Peoples Bank customers. It would be a shame if you did the same to another cardholder without the ability to pay of the account immediately, and thus avoid your extortionate interest rate.
Sincerely, Peter
