GMCard cancelled out of the blue

[auburnblu]

Oh great. GMCard just cancelled me. I called up and they werent sure why. Be careful if you're thinking about getting this card as it appears they may cancel you without giving a reason.

[chaseabryant]

My parents are about to dump theirs, as the interest rates have skyrocketed. They have outstanding credit and pay on time every month. The only issue may be that the credit card gets paid off every month.

It is a shame, we love being able to use it towards vehicles.

-Chase

[OLDSCHOOLGMFAN]

I never quite understood the darn thing so just avoided it!

[sonjaab]

When was the last time you used it? Most card issuers in this crummy
economy are cancelling a lot of inactive cards no matter what the
customers credit rating is.
If your not using it ...THEY aren't making that 18% money and they
don't want you anymore! Simple.

[auburnblu]

Originally Posted by sonjaab

When was the last time you used it? Most card issuers in this crummy
economy are cancelling a lot of inactive cards no matter what the
customers credit rating is.
If your not using it ...THEY aren't making that 18% money and they
don't want you anymore! Simple.

i charge everything on it. Spend at least $2K a month on it. They claim I opted out of the rate increase. Which requires a letter or a call. figthing with them to get my account restored.

[BlackGTP]

Originally Posted by Danko

First off, it is HSBC that may have canceled you. My wife and I each just got letters saying our interest rates would skyrocket unless we opt out my Dec 13th. We will. They allow 90 days to use any unused earnings. We just used ours on a new Suburban purchase so we are at zero and will lose nothing. However, every Dec., GM Card sends us cards entitling us to extra money off but requires January delivery, in conjunction with detoilet's Auto Show, so I will not opt out of the cards until November, making us eligible to use the cards in January, if we get them again this year. They have been good for $2000 lately. One of the accounts was used as a loan recently. The other for everyday purchases with the balance going up a lot in the last couple months due to a daughter's wedding. We have never been late and been members since these started, many years ago. We have paid a lot of interest but the rates have been acceptable, until now. What is happening is OUR fault because it is our elected representatives that have caused this and as we all know, they only do what we want because it is their job to represent us. THE D.C. idiots, in an attempt to "protect" us, have written a law restricting what credit companies can do but they made it effective months after the law's passage, so the credit companies have used that time dumping anyone they want for any reason they want. We have lost two Citi Card accts. and now two GM Card/HSBC accts. and I expect more because we will start using the other accounts more. Thank you Congress (but then Bush will get blamed for this, right?)

I'm a little confused by "opt out" - does that mean cancel your card before the interest rate rises? I'm concerned as I have the original GM card with no caps on the amounts of points you can use on specific cars, i.e. if I am at my maximum $3,500 points I can use the entire amount on any car (lifetime I have saved $11,000!!!!). I just want to make sure there wasn't a letter I missed where I have to do something.

PS - I never carry a balance on my credit card. I think if you want to buy a tv you should save your money first and then but the tv. Not buy and then pay interest to a credit card company - I think 10% is too much. Only if is an emergency or if you can earn a higher rate of return elsewhere should you carry a balance.

[BlackGTP]

http://www.msnbc.msn.com/id/33388210...consumer_news/

Related story - not the GM credit card but it may shed some light on your situation.

[ksr]

The interest rate has never been good. If I couldn't pay if off every month, I wouldn't use it.

I have the original card and I use it until I accumulate the max $500 rebate for a year. Then I use my Visa.

I haven't heard of any upcoming changes. Since I never switched off the original card (they switched me to a new account when the 1% rebate program came out, but I had it switched back), I wouldn't be surprised if they did cancel the card.

It's been a great deal for me. $7777 (out of a max possible $8500) in redemptions on five purchases since I got the card in 1992 and first redeemed a rebate in 1994. It was nice taking $2500 off the Camaro's sticker.

[sonjaab]

Its not just HSBC cancelling cards or charging higher rates and non-usage/min-usage fees:
http://www.usatoday.com/money/perfi/...card-fee_N.htm

My GM card is currently charging 18.24% on purchases and 20.99% on cash advance.
Me? Never carry a balance and could care less what they charge as most others charge the same BUT there are a few exceptions out there!

[Danko]

Yup, saved a lot of thousands myself and gave $3500 each to two relatives for their new Chevies, too. Only knocked off $636 or so on Suburban we are in process of getting because I have drained these two accounts four times now in less than two years.

[auburnblu]

Originally Posted by Danko

Yup, saved a lot of thousands myself and gave $3500 each to two relatives for their new Chevies, too. Only knocked off $636 or so on Suburban we are in process of getting because I have drained these two accounts four times now in less than two years.

I have bought three new GM trucks in the last 4 years and the card has been a big plus to have. There was a fraud block put on my card and a number of cards on Friday (HSBC system issue). I called about that and only talked about that on the call and now HSBC is saying the call was me opting out of the new rates. If they dont reinstate me, goodbye HSBC and GM forever.

[auburnblu]

Yes, after two and a half weeks HSBC realized I did not want my account closed.

[Dana_15]

Originally Posted by sonjaab

When was the last time you used it? Most card issuers in this crummy
economy are cancelling a lot of inactive cards no matter what the
customers credit rating is.
If your not using it ...THEY aren't making that 18% money and they
don't want you anymore! Simple.

Funny you should mention that, I got a letter from HSBC saying since I haven't used the credit card in "awhile" my credit limit is now $500, down from $15k. I used to make large purchases on it while accumulating money towards a new vehicle, now its useless...

[Barry Badrinath]

Originally Posted by Dana_15

Funny you should mention that, I got a letter from HSBC saying since I haven't used the credit card in "awhile" my credit limit is now $500, down from $15k. I used to make large purchases on it while accumulating money towards a new vehicle, now its useless...

It is THE easiest way for a bank to improve their Tier 1 capital ratio. Every commitment has a set off relative to how much you can lend. Any type of line, be it, credit card or HELOC is being dumped. First they try to get you to close it by raising the rate rediculously, then, if you don't bite, they just summarily reduce it. In the case of a HELOC, they will base it off the county assessment rate, and say, so sorry, you no longer have the equity we require...

[Dana_15]

Originally Posted by Barry Badrinath

It is THE easiest way for a bank to improve their Tier 1 capital ratio. Every commitment has a set off relative to how much you can lend. Any type of line, be it, credit card or HELOC is being dumped. First they try to get you to close it by raising the rate rediculously, then, if you don't bite, they just summarily reduce it. In the case of a HELOC, they will base it off the county assessment rate, and say, so sorry, you no longer have the equity we require...

Interesting, I found it odd. Thanks for the info!