Thursday, September 16, 2010

Does a Credit Union have the right to change your interest rate from what is in your contract?

I was an Assistant Branch Manager at a small town credit union while my husband was working in the town. We refinanced our vehicles through them at a low interest rate and maybe a year later, we found out that we were being relocated. Approx 3 months later we got a letter in the mail saying that since I was no longer an employee and since we had moved out of state, they were raising our interest rate by 8%! Is that legal? I've never heard of that before, and I just got a new statement from them...the rates are horrible and we are planning to refinance here locally, but still wonder if the rate change was justified? Can someone please shed some light?