[lbo-talk] legal question

Michael Pollak mpollak at panix.com
Fri Sep 5 13:03:10 PDT 2008


On Fri, 5 Sep 2008, Wojtek Sokolowski wrote:


> [WS:} I do not think credit card companies can change interest rate on
> the alredy existing balance

Sadly, you're totally wrong about that. It's an outrage but it's true. This is exactly the main way people get crushed into bankruptcy -- they run up 30G at the low rate, make a late payment, and suddenly the rate on the whole pile is tripled.

Elizabeth Warren covered it in one of her interviews with Doug and also in her books. When I get a chance I'll skim and find it for you.

Michael



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