An End to Rate-jacking is Cause for Celebration!

January 5th, 2010
by Michael

CRN is Holding a Contest!

It’s our way of celebrating the fact that in February of this year, the Credit Card Accountability Responsibility and Disclosure (CARD) Act will prohibit credit card companies from rate jacking consumers. This means that their pernicious practice of increasing interest rates on consumers’ existing account balances, for virtually any reason, will end. But before going into the contest details, I want to quickly outline why CRN believes that the end to rate jacking merits a contest.

There are many reasons why so many consumers struggle with crushing debt;  cut in work hours, job loss, medical issues, and other difficult events are just some of the more common. But rate jacking (also known as universal default) is another reason, and when consumers are rate jacked, they become the victims of greedy creditors searching for higher profits under the guise of risk management.

One of the effects of rate jacking is that it increases the cost of purchases consumers have already made and budgeted for. It also increases their monthly minimum payments, making it almost impossible, for many consumers to keep current. Some of these consumers end up having to pursue credit counseling, debt settlement, or bankruptcy to deal with their debts. Case in point, over the last several years, more than half of all the consumers CRN consulted with had had their interest rates increased.

Adding insult to injury, when a consumer is rate-jacked by one creditor, the consumer’s other creditors usually follow suit. Often, when this occurs, consumers who would have been able to get out of debt by applying a simple debt rollup strategy, lose that option.

During the months leading up to implementation of the CARD Act, the media has spilled a lot of  ink on this topic. I have also written about and spoken against rate-jacking more times than I can count. So, the end of rate jacking is a GREAT REASON TO CELEBRATE!

Contest Details:

Submit your personal rate jacking story to CRN no later than 1/31/10. You can submit it via the comment section of this blog post (see below), by email (michael@consumerrecoverynetwork.com) or send it by regular mail:

CRN
217 Cedar St. #281
Sandpoint ID 83864

There is no limit on the length of your story. The only criteria are:

1. You must describe having been “jacked” by one or more of your creditors and the effects that it had on you.
2. Your entry should indicate if you have resolved the problems that resulted from the rate jacking. If you have , please explain.
3. You must include your name (first name is sufficient), a valid email address and your daytime phone number (when submitting your story via the comment section of this blog, this information will not be made public). You may be contacted by me or another CRN debt specialist for additional details about your experience.

The winner will receive a FULL CRN Membership at absolutely NO COST! This includes the CRN “Settle Down” educational series, full service debt negotiation services, and unlimited one-on-one assistance and support from an assigned CRN specialist for a period of 2 years. Depending on the winner’s financial circumstances, and the results of program implementation, the prize value may be worth thousands of dollars. (prize is transferrable; see below)

CRN staff will read all entries and choose 6 semi-finalists. Then, a panel of CRN specialists, personal finance writers and well-known consumer advocates will choose a winner from those 6. The contest winner will be notified by phone and email, and will have 90 days to claim their prize. Their story will be published here on 2/15/2010.

What a unique opportunity to tell your story & win a great prize that can help turn your finances around!

Michael Bovee, CRN President

NOTE: CRN reserves the right to publish any contest submissions, but will never publish your name. CRN understands that some consumers who enter CRN’s contest may have already resolved the financial problems that were the consequence of their having been rate jacked. For example, they may have been forced to file bankruptcy. Therefore, if one of these consumers is chosen as the winner of CRN’s contest, that individual can transfer their prize to a friend, family member or co-worker who can benefit from a CRN membership. Who doesn’t know someone who could use help getting out of debt? Especially in this economy!