Can Companies In Your Bankruptcy Charge Your Higher Interest if You Use them again?

[CoCoChanel]

Pretty much after my bankruptcy, I had no credit and did not want any. After years of not having anymore, I decided to buy something on credit just to see how I faired. Anyway, I went to this company for a loan and was told that they could not give me one, however they could get a company to give me the money but they had to crunch some numbers 1st. After hours of waiting for the result, I was told that Crapital One Loans would give me the money at an interest rate of 23 percent.

1st thing I thought was that they remembered me from filing bankruptcy and figured that this was the quickest way to re-coup some of their 8,000 dollars they lost on me filing chapter 7.

Is this legal?

[keepmine]

Yes, it's legal. Heck, the don]t have to extend you credit at all.
Cap1 is one of the few lenders that will extend credit to someone who included them in a bk filing.

[justbroke]

You will never get another card from American Express, after having filed. They can rate their risk based on formulas. Remember, they don't even have to lend to you. So long as their business practice is fair and reasonable and not discriminatory... they can decline your application all day long.

It would not be legal, however, for a lender like Capitol One to purposely approve a credit card for you -- after having BK'd prior debt with them -- solely to jack up the rate and to recoup their losses. Now that wouldn't be legal.