GMAC Mortgage raised rates to 28% now I'm mad!

[Kansas1960]

I am waiting until October to file to make sure everything is old enough to reduce worries. My plan is to stop paying in July. This is the last month I was going to charge anything. GMAC threw a monkey wrench into my plan by raising my rates from 13.99% to 28.49%. Minimum payment went from 160to 300 a month. They lowered it because of my credit rating, not because I was late, I have never missed a payment. Payment is due 1-31-09. I am going to call them after I get enough opinions from the board on how to lower my rate.

Here is my idea:

1. Call and ask them to change it. I expect a no.

2. Ask for a supervisor, plead my case. I expect a no.

3. After a no, I will escalte my position to informing them I will not pay until my rate is reduce back and any late fees removed.

4. Once calls start coming in repeat my position. Answer calls every now and then and remind them of my position.

5. Drag this out until October.

I even had fantasies of bugging them by calling 20 times a day and ask same question...but that would be a wast of my time.

Can I hold them off until October? Any other adivice would be appreciated.

[Trixie007]

After reading some of your other posts, I would say that you should take care of those necessary home repairs with your HELOC, and stop paying all cards maybe 6 months prior to when you know you're going to file! Paying your cards all the way til July if you are filing in October is throwing money away. By the time we file, we will be 10-12 months delinquent on 10 cc's - by then, the total balances will likely be over 200k! At this point our attorney feels that we will not be sued prior to our filing in April.

Also, If you absolutely know you are filing, why do you care what your interest rate is?? You can either afford to work your way out of debt or you can't. If you can, then by all means, work with them. But if you can't, don't waste your time or energy - you will only get frustrated and find that this consumes your life. This comes down to a business decision - as the CFO of your "business", what makes sense?

[catleg]

I agree. Raising the interest to the default rate triggers a "policy response" from me that I refuse to pay.

You could make the payment and then spend the money back out again before the card cycles ... this will buy you one less month of lateness but an extra month of over the limitness. Decisions, decisions.

After you're a couple of months late they might let you into a hardship program for the price of one past due payment, you'll have to decide at that time whether paying anything at that time is worth it to get them off your back.

Probably a good time to start thinking about changing bank accounts that you've paid them from. Just in case a collector gets sleazy or you have a weak moment and think about paying.

P.S. What you suggested won't work. You have to scare them first into offering "help" (they're calling you with the autodialer because you need "help", like you lost your checkbook, permanently. )

[TEW]

I am waiting until October to file to make sure everything is old enough to reduce worries. My plan is to stop paying in July. This is the last month I was going to charge anything. GMAC threw a monkey wrench into my plan by raising my rates from 13.99% to 28.49%. Minimum payment went from 160to 300 a month. They lowered it because of my credit rating, not because I was late, I have never missed a payment. Payment is due 1-31-09. I am going to call them after I get enough opinions from the board on how to lower my rate.

Here is my idea:

1. Call and ask them to change it. I expect a no.

2. Ask for a supervisor, plead my case. I expect a no.

3. After a no, I will escalte my position to informing them I will not pay until my rate is reduce back and any late fees removed.

4. Once calls start coming in repeat my position. Answer calls every now and then and remind them of my position.

5. Drag this out until October.

I even had fantasies of bugging them by calling 20 times a day and ask same question...but that would be a wast of my time.

Can I hold them off until October? Any other adivice would be appreciated.

I guess my question is why
they aren't going to lower your rate so why play that game. don't call them and change your phone number and stop paying.
IF you really want to waste money I am taking donations.

[fltoo]

After reading some of your other posts, I would say that you should take care of those necessary home repairs with your HELOC, and stop paying all cards maybe 6 months prior to when you know you're going to file! Paying your cards all the way til July if you are filing in October is throwing money away. By the time we file, we will be 10-12 months delinquent on 10 cc's - by then, the total balances will likely be over 200k! At this point our attorney feels that we will not be sued prior to our filing in April.

Also, If you absolutely know you are filing, why do you care what your interest rate is?? You can either afford to work your way out of debt or you can't. If you can, then by all means, work with them. But if you can't, don't waste your time or energy - you will only get frustrated and find that this consumes your life. This comes down to a business decision - as the CFO of your "business", what makes sense?

Sound reasoning and excellent advice about not letting it consume your life!

[Kansas1960]

Thanks for all your advice. I did call them and they lowered the payment back to where it was with the condition I did not use the card to keep that rate. If I use it the new rate will be the default rate of 28.49%. I don't know if I should pay this or not. It will give me one more month of freedom from calls and I guess I could charge back gas and stuff equal to my last payment and it would be a wash. Looks like this may be my last month to use my cards and make payments. I plan on visiting an attorney in Feb and I am sure I will be instructed to stop making all payments. Is it generally ok to use CC equal to your payments and not raise any abuse concerns? I would only do this to buy some time.