--- On Fri, 9/5/08, Michael Pollak <mpollak at panix.com> wrote:
> If credit cards can change your interest rate from 10% to
> 30% on a
> mountain of debt you've already contracted -- and they
> can -- I can't
> imagine telecom companies can't do this. All it would
> require would be a
> footnote in the small type section saying that you accept
> that something
> like this might happen in the future. And I'll bet you
> a new phone it's
> in there.
[WS:} I do not think credit card companies can change interest rate on the alredy existing balance - what they typically do (based on my experience) is sying that they are increasing the interest rate and if you do not accept that change, you must notify them. If you do, they close your account (i.e. you cannot make any new charges) and you need to pay the balance at the old interest rate.
I've also seen small print notes that they may demand the payment of the balance in full under certain conditions (e.g. you beiing delinquent) but I am not sure if not accepting their new rate would be such a condition.
As I understand it (lawyers please correct me if i am wrong) penalties for breaking long term contracts as a result of one-sided changes of contract terms can be fought on the grounds of the promissory estoppel doctrine (i.e it would be unjust for a company to reneg on its promise of a certain terms of service and then charge me cancellation fees if I cancel the service.)
Wojtek