'Muscle' Silences Credit Card Adversaries (Vija Udenans)

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Credit Cards

Christy Mylar Smith and her husband paid their Citibank card bill on time for years -- but when they paid late twice in one year, their interest rate increased from 12.9 percent to 31.4 percent overnight.

Steven Strachan has a FICO score in the high 700s, has always paid on time, has never gone over the limit, yet Chase increased his rate from 10.99 percent to 24.99 percent.

Steve Autry accepted a fixed rate for life of 9.9 percent from Capital One. Now Capital One tells him that the cost of business and rising interest rates will cause his rates to increase, even though he has been a customer in good standing for many years.

Marvin Weatherspoon took advantage of a low introductory rate from Bank of America, but because he was a few days late in paying one month, his interest rate has been increased from 4.25 percent to almost 25 percent. Only $108 of his $347 monthly payment goes to the principal. He has tried to work with the bank, but felt "he had no voice."

At the 11th hour, the credit companies found a way to stop those that had traveled to Washington today to tell their story to the congressional panel on consumer credit.