Consumer complaint received 2017-03-24
Company: U.S. BANCORP
State: MA
Product: Credit card
Issue: APR or interest rate

Complaint:
I received a letter in the mail from " XXXX '' advising of " some important changes that are being made '' to my credit card Account. The letter provided XXXX digits identifying " Your Account ending in .... ''. While I have a credit card ending in those XXXX numbers, my statement for that credit card comes from Bridgewater Credit Union, not XXXX. Nowhere on the letter does it indicate that they are the servicer for Bridgewater Credit Union. This is DECEPTIVE in nature. The letter went on to advise that the Annual Percentage Rate on the credit card Account was being increased due to an account review that was performed " utilization both internal Account history and credit bureau information ''. When I contacted Cardmember Services, the representative that I spoke with advised that the reason they were increasing my APR was due to my credit score. So, the letter is again DECEPTIVE in that the APR is NOT being increased due to " internal Account history ''. Matter of fact, when I questioned the representative, asking them to confirm the fact that I have NEVER been late in payment on my account and, in fact, pay close to {$200.00} per month in excess of my monthly " required ' payment, the rep confirmed this. I advised the rep that my credit score is low due to medical bills which have surmounted due to a XXXX in XXXX 2016 which caused in excess of $ XXXX in medical costs. I further advised that I have an inability to pay that amount but am working with all medical providers to make payments and that my credit score, while low, is not at all indicative of my payment history with Bridgewater Credit Union. Matter of fact, I asked the rep if they were aware that a credit score fluctuates on a monthly basis and is a cumulative of many different factors and not XXXX single item on a credit report. I advised that if they reviewed my report, as a whole, they would see that every single installment and revolving account is being paid on time and only the medical bills are an issue. I further went on to explain that many of the medical bills are also in dispute due to XXXX XXXX in 2016. I also advised that under the law, I am under NO obligation to reveal any information related to this to them. The fact that this institution is raising my rate due to a credit score which is indicative of MANY different factors is an UNFAIR and ABUSIVE act and practice. I have been a loyal customer for many years. I have proven myself and my ability to pay. As such, my APR should remain intact and should not be increased. Matter of fact, their letter goes on to say that they are making changes due to derogatory public record or collection, proportion of balances to credit limits is too high on bank revolving or other revolving accounts, time since derogatory public record or collection or proportion of loan balances to loan amount is too high. If this is the case and they are raising my APR then they are abusing their power as they clearly recognize I am having an issue with medical bills and preying on that by raising the APR to collect additional interest. This is an ABUSIVE practice. I want this company investigated. I made an attempt to contact them and discuss and allow them to right this wrong and they were unwilling to do anything about this. This is not right. They are preying on consumers. They are engaging in unfair, abusive and deceptive acts and practices.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation