Credit card literacy is an important part of being an adult. And Americans are growing increasingly savvy in their credit card use, which is a good thing.
However, some credit card companies seek to dramatically inflate their profit margins by fraudulently hiking the interest rates they charge. The practice is common enough to have resulted in a few class-action lawsuits, but you needn't be part of a class to sue a credit card company. You have legal recourse if you were the victim of a fraudulent interest rate hike. Our credit card abuse attorneys can help.
If you live in or around Redondo Beach, California and need a lawyer with experience handling fraudulent interest rate hikes, please call Kirtland & Packard today at 310-536-1000 for a free consultation.
Can You Sue a Credit Card Company for Fraud?
Many credit lenders have arbitration clauses in their user contracts to try and prevent lawsuits. However, if you have been defrauded by a credit card company, you may still be entitled to sue. The best way to find out is through a one-on-one case evaluation with an experienced credit card fraud lawyer.
Kirtland & Packard has decades of experience holding unscrupulous corporations accountable. If you have suffered financial damages due to credit card fraud, call us for a free consultation today.
Credit Card and Bank Interest Fraud
There are many ways for financial institutions to violate the law. Just a few examples of such violations are:
- Promising a fixed interest rate on your credit card or loan but then increasing the interest rate
- Promising a low introductory rate for a certain period of time, but increasing it before that time-period is over
- Charging undisclosed fees on transactions
- Processing transactions in an order designed to maximize fees
Banks, credit card companies, and financial firms have to meet stringent regulations regarding things like interest rates, minimum payments, and fees. If they fail to make these disclosures, or make them in a way that is misleading, their customers may be entitled to compensation.
Financial regulations, however, are extremely complex. You need a credit card fraud lawyer who has significant experience in navigating those complex regulations in order to determine whether, in your case, those companies crossed the line. Our firm has successfully sued banks, credit card companies, and other financial institutions and recovered millions of dollars for consumers. Call today to learn how we can help you.
In 2010, Congress passed the Credit CARD Act, which was designed to strictly regulate the abusive tactics credit card companies had long used to bilk customers. The law did some impressive things, but unsurprisingly, many credit card companies found creative ways around some of its strictures.
Under the law, interest rate hikes are strictly limited, especially on existing balances. Interest rates on new transactions can only increase after one year of opening an account and significant interest rate hikes can only go into effect after 45 days’ notice.
These regulations ended some practices, including sudden, unexplained interest rate hikes, that credit card companies frequently made use of. But it's far from unheard of for credit card companies to continue using these abusive tactics, often with minor tweaks in an effort to make them “legal.”
Unfortunately, many consumers are unaware of their rights and don't know they are protected by federal law. They imagine they just have to deal with the hikes.
You do not have to be the credit card company's victim. Our credit card abuse attorneys are on your side in these cases. We fight for people who have suffered financial losses as a result of fraudulent interest rate hikes.
Was your rate hike illegal? The best way to find out is to speak with our lawyers at a free initial consultation. Bring as much documentation as possible to make the conversation easier.
If you were the victim of an unethical credit card company in Torrance, Redondo Beach, or a surrounding South Bay area, our credit card fraud lawyers are here to help. Please call Kirtland & Packard, LLP today at 310-536-1000 for a free consultation today. We have decades of experience handling fraudulent credit card interest rate hikes. We will assess your claim free of charge to help you determine your best course of action.