I am one of those unfortunate souls that had to take out loans when my husband asked for a divorce. At the time there were great low interest loans to be had. Recently the institution I have a loan with recalled the low interest rate (which they can do at any time as per the fine print) and instead reverted them all to a regular 29.9% rate. ACKKKKKKK I think it's fair to say that the old adage "The devils in the details" really applies here.

Well what institution was this? If they do things like that, no one should trust them ever again and they should lose their business and go back to flippin' burgers.

Trust is everything.

As long as it was in the initial contract, the institution is wholly within their rights. Nothing dishonest about it.

I'm just point out that this is in direct relation to all the other credit problems our system is having. So anyone else out that that has an outstanding loan, watch out.

Amelia ... I am so sorry to hear this. These are tough times. What are you going to do? Surly you can't pay that high of interest rate? Soon we will have a nation that can neither buy nor sell if the bail out is not accomplished.

I had a credit card that raised my interest rate to 29.9% - all legally, of course. I called them though, and told them I thought it was usury. They reduced the rate back down to the original - which wasn't all that great to begin with (19.9%) and told me they were closing my account. That was fine with me since I wasn't using it anyway - but I still have to pay off the balance.

Sometimes the terms state that if you are ever late with a payment ... even only one time .... that you will be charged the higher rate.

But, like you did Pam ... often times if you contact them ... they will reduce it for you if you ask.

I had a credit card that raised my rate plus cut the amount that I could charge because I was late to another card. When I called them they would not lower the rate. So I transfered what I owned to another card. And canceled that card.

pk

And I thought credit card rates in this country were scary, I have not heard of any up near 30%. I think most are in the high teens.

Amelia, I hope you can find a way round your dilemma.

I have read that whenever you tranfer balances to another credit and or when you cancel a credit card your credit rating takes a ding meaning that they your credit rating is reduced. Not fair but that is how they operate.