Credit Card Terms Variance

MJDAvenger

Is a credit card issuer permitted to alter the terms of the agreement (in this case, how the minimum payment is calculated) after the card account is closed? I closed this account some years ago rather than accept a change in how the minimum payment was calcualted (from interest plus a flat amount to interest plus 1%) and am (very) slowly paying it off. My minimum payment calculation has suddenly changed to interest plus 1% without consulation. Is this permitted?

Life__Goes__On

MJDAvenger said:

 My minimum payment calculation has suddenly changed to interest plus 1% without consulation. Is this permitted?

That's the law, and has been for some time.

jonesMUFCforever

If they have given you sufficient notice in accordance with their terms and conditions - yes they can amend their minimum payment calculation. 

MJDAvenger

That's disappointing, but thanks for the replies. I had thought that since I exercised my right to close the account rather than accept the change they would not then be able to implement the change regardless.

jonesMUFCforever

MJDAvenger said:

That's disappointing, but thanks for the replies. I had thought that since I exercised my right to close the account rather than accept the change they would not then be able to implement the change regardless.

Even if you can't see it now - it is a decision that will save you money - more repayment means less interest and the debt cleared sooner.

MJDAvenger

I know that - but thanks for pointing it out in case I didn't, I've made some pretty dumb errors in the past. Anyway, the problem here is that to afford the increased minimum payment here I will have to reduce the overpayment I make on a higher interest rate card. Which means paying more for longer - I was hoping to clear the bigger one first then concentrate on this one.

born_again

MJDAvenger said:

That's disappointing, but thanks for the replies. I had thought that since I exercised my right to close the account rather than accept the change they would not then be able to implement the change regardless.

Well you have closed the account. It just does not write off the debt you owe.
If you really are dead set against the change, then you would need to pay it off.