MikeMontrealer wrote: ↑Apr 1st, 2012 12:55 amHow was it sneaky? I'm pretty sure they must have communicated the change, along with an offer to cancel the card if you found the terms disagreeable.
I know it's a favourite pastime to crap on banks but people have to take responsibility for understanding the terms of their financial instruments and any changes made to those terms.
IMO, it's sneaky because changing payment allocation from high interest first to proportional method is a major policy change and should be communicated well. I bet most RFDers still think if they have 2 different interest rates on their balance, banks will allocate payment to higher interest rate. They may pay 19% or more APR for some part of their balance and never have a chance to pay high interest portion unless they close their balance to "0".
Personally I did not know until a fellow RFDer posted the second option. When payment regulations changed in September 2010, they did a good marketing and we assumed that payment allocation will be HIGH to LOW.
IF ANYONE HAVE LOW and HIGH INTEREST RATES ON THEIR CC BALANCE, BE CAREFUL! YOUR PAYMENT MAY NOT CLOSE HIGH INTEREST RATE PART!
This is just a friendly warning as you may end up paying 19%+ APR for some portion of your balance although you follow and complete minimum payments requirement.