Consumer complaint received 2023-04-06 00:00:00
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Fees or interest — Unexpected increase in interest rate
Company: First Technology Federal Credit Union
State: OR

Complaint narrative:
I've had an account with First Tech Credit Union ( FTCU ) for over 30 years, and have successfully established excellent credit and a track record of fully-paid car loans, consumer loans and a home equity line of credit. 

On XX/XX/XXXX, I received a letter in the mail from FTCU informing me that my interest rate on our FTCU XXXX would be rising from 12.50 % to 13.75 % " due to a decline in my credit score ''.

This was my first awareness of any problem associated with my credit score, which typically has been rated as " excellent '' running in the average range score of XXXX to XXXX during the past ten years. My wife and I have very little consumer debt that is usually paid in full routinely. We own our home free and clear, have a stable income, with no mortgage, no car loans and no student loans. We own our home, autos and other assets, and we have over {$60000.00} in savings with FTCU. 

I logged into the credit bureaus to inspect my report and found that a negative entry had been registered from a company called XXXX XXXX XXXX, a credit collection agency under contract with XXXX XXXX. We terminated our DISH account in XX/XX/XXXX prior to the last day of the billing cycle, turned in our leased equipment, paid our account in full, and switched to XXXX. A few weeks later, we began receiving bills in the mail for payment of {$100.00} for the month after we cancelled our service. Calls to DISH produced no positive outcome. We were not about to pay for a month of service that we never used, and so we did not pay. The matter went to collections. 

We have learned that XXXX XXXX XXXX has a poor reputation of using high-pressure practices and tactics in violation of the Fair Debt Collection Practices Act ( FDCPA ) of 1978. XXXX uses robocalls, text messages and social media to badger and bully clients into paying debts. 

When I discovered that my credit reports contained this negative entry from XXXX XXXX about my former DISH account, I immediately took action and succeeded in having the entry from XXXX removed from my credit report with all three of the major reporting agencies ( XXXX, XXXX and XXXX ). Checking my credit score was restored to its previous status of XXXX. In over fifteen years, I have had no blemish to my credit report, except for this one matter, which has now been resolved. 

I contacted FTCU and spoke with a customer service representative this morning about this problem and their letter informing they would be raising my interest rates. I told them that the problem had been taken care of, but it didn't matter. I was told that account reviews occur only twice a year, and that the next one would be later this year ( XXXX or XXXX ). The rep added that " a lot of people were affected by their recent account review, and that there was nothing I could do about it except to reject or opt out. If I opt out, I am essentially terminating my credit card privileges and also those of my wife 's whose credit score was unaffected by all of this, but who would lose her credit card privileges if I were to reject or opt out. 

Doing business with a financial institution for over 30 years used to mean something more than getting penalized the first chance a problem arises, and then having no say in the matter until they get around to it. 

My complaint is that FTCU should have a procedure in place for contingencies like mine that can be reviewed and reconsidered if there is erroneous, infactual or different information that emerges to change the credit report ( s ) they use to determine interest rates for their card holders. As it stands, I stand to be charged a higher rate of interest for an issue that no longer appears on my credit report. It's no different that paying higher insurance rates for a speeding ticket that long disappeared from someone's driving record, and it is not fair.

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