Aggresive Creditors

[howdidithappen]

Just wondering if one creditor is more aggressive than another - Owed Chase $18K they filed suit in three months. Owe HSBC same amount - - just recieved a message from a collection agency that they want to work it out before filing suit. Is there a reason why one creditor reacts differently than another?

[BKOnce]

Yes, different creditors have different history of learning practices or abusive tactics because different numbers of customers, # of BK files, # or defaults, # of late charges, amounts of credits, interests rates, different company/lender/bank policies involved, etc. In summary, older lenders move quickly, younger companies move slowly in recovering their debts.

[magyar123]

As BKOnce states - different banks have different policies, and "older" lenders move quicker than "younger" companies. The "older" lenders - Chase, Citibank, Bank of America, and to some extent Wells Fargo are the ones known for their loanshark practices and high fees. They were the ones who screamed and hollered the loudest a few months ago when a Senate hearing was held into their crooked practices. Kinda funny because they were among the biggest contributors to those idiots in Congress to pass the new bankruptcy bill in 2005

[howdidithappen]

It's the outrageous interest rates they're allowed to charge that got me into this mess - one late payment on one card and they all raise your rates to 29.99%

[Lindsay]

It's the outrageous interest rates they're allowed to charge that got me into this mess - one late payment on one card and they all raise your rates to 29.99%

That is how it happened with us too. Some of the cards raised our interest to 30% before we were ever late. They just said it had to do with something in our credit report. It should be illegal for credit cards to do that; it forces people into bankruptcy.

[howdidithappen]

Yes late on one card (even if you mailed it but they claim they never got it) and they all raise your rates.

[guzzie]

which is why i don't want another credit card after my discharge.
they are all theives...yes the people in congress are idiots...good luck to you..guzzie

[Gordon]

That is how it happened with us too. Some of the cards raised our interest to 30% before we were ever late. They just said it had to do with something in our credit report. It should be illegal for credit cards to do that; it forces people into bankruptcy.

That's what happened to my accounts too. Not just Chase but 2 other accounts as well. Of course the interest is compounded daily which works out to an actual interest rate of over 35% yearly. And I never missed a payment, was never late and had a credit score of about 700.

[SinkingFast]

That is how it happened with us too. Some of the cards raised our interest to 30% before we were ever late. They just said it had to do with something in our credit report. It should be illegal for credit cards to do that; it forces people into bankruptcy.

Probably your debt to available credit ratio exceeded what they allowed.

It's part of Universal Default. It affects not only being late, but your Credit Utilization as well. The more you owe, in relation to your credit limits increases your risk of default. Poof! Your interest rates sky rocket.