Consumer complaint received 2021-03-19
Company: First Technology Federal Credit Union
State: TX
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
I purchased a new vehicle and was offered a platinum credit card with a $ XXXX limit as part of the package. At the time of the offer, my mid credit score was 725. I had no late payment history for over 5 years, no charge offs etc. My credit score was steadily rising. According to my calculations, by XX/XX/XXXX if I continued along the economic plan I pursued, my score should have been XXXX poss XXXX. Once I became a member of First Tech things began to immediately go wrong. # 1 the vehicle I used as a trade in was not paid off in a timely fashion causing my credit score to take a hit. The payoff came 3 months after we closed the deal but I was being told by First Tech that there must be some confusion on the part of my other credit union because they paid. They did not pay. As I used the card, I immediately paid off the charges usually not carrying a balance longer than a week to 14 days. Unknown to me as my usage increased so did my interest rate. It was approximately a year or so before I learned of the increase. I was upset because I had no late payments, I carried no balance, I had not overdrafts etc. This was approximately around XXXX. I attempted to negotiate a better rate but was unsuccessful. At this time I also began carrying a balance but again was keeping up successfully with the payments until the fees and the interest continued to increase. I was being charged unbelievable fees for cash advances and my payments were not being applied as I thought. I was told payments made for cash advances instead went to other charges that might have preceded the cash advance. I was also being charged repeatedly for the same cash advance month at an increased rate each time due the rising interest rate and the rising balance. I believe this has became predatory lending. My score has steadily fluctuated during this period which contributed to increasing rates and debt to income ratio according to First Tech. In XXXX I attempted to obtain a loan to get out of my credit card debt and auto loan with First Tech but was informed by my mother credit union that First Tech had not been reporting my auto loan or credit card history. This led to my file showing not enough credit history. First Tech has made me look like a credit risk. I now have a score according to the other credit union in the 500 's. I was recently denied a loan. First Tech reported a non-payment because the payment was short by {$18.00}. I have attempted several times to restructure the credit card debt. I have attempted to close the account. First Tech has been resistant. I even attempted to put it into forbearance but that was short lived. A search off my credit history will show this is the only account where I have issues. I have maintained a mix of credit and have paid off several loans while with them. They block my success with unfair fees, misleading credit entries, and rising rates. Why was by auto loan 4.55 % and my credit card 11 % when they both opened at the same time.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation