Consumer Payment Card News

Sorry Charlie

There has been so much attention focused on the nasty credit card practice of “universal default,” whereby a cardholder screw-up with any creditor sends the credit card interest rate into the stratosphere. However, most cardholders do not realize that many credit card issuers declare in the account agreement that they can change the terms of the account for market conditions, business strategies, profitability or for any reason period! A new study by San Francisco-based Consumer Action found that most of the top issuers still carry creative language in their agreements that allows them to change credit card terms at any time for any reason. This despite public claims by some issuers that they have ended the practice of “universal default.” CA found that in many cases interest rates were jacked-up on cardholders who never paid late, exceeded the credit limit or paid with a bad check, they simply had too many cards or their balances were too high. For more information visit: “”:

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