HSBC changes Best Buy credit card daily periodic rate

JM in Indiana said: “I received a letter from HSBC about my RewardZone BestBuy credit card. Effective 12-08-09, HSBC is raising their interest rates from the current Daily Periodic Rate which is based on 1/365th of the sum of the Index plus 14.74% (spread) to a new Daily Perioidic Rate based on 1/365th of the sum of the Index plus 22.74% (spread).

For example, the billing cycle ending 8/31/09 rate currently would have been 17.99% annual percentage rate compared to 25.99% with the new interest rate. That is an 8% increase under the new rate, which is nothing but greed on the part of HSBC.

The Cash APR would change from the 22.74% to 25.99% annual percental rate and the Default APR would change from 26.74% to 29.99% annual percentage rate.

THIS INCREASE BY HSBC ON 12-08-09 SHOULD BE INVESTIGATED BECAUSE THE ONLY REASON THEY ARE CHANGING THEIR INTEREST RATES IS BECAUSE OF THE NEW CREDIT CARD LAW GOING INTO EFFECT 2-22-10. HSBC SHOULD NOT BE ALLOWED TO GO THROUGH WITH THE NEW INCREASES.

This company is already a rip off and is trying to gouge the current customer for more money before the government passes the law in February. This practice by any credit card company or bank should be illegal. Can anything be done to stop these practices?”