A few months ago, I received a phone call from Sears. It seems I missed a payment. It was a courtesy call to let me know. They asked if I was prepared to make a payment over the phone... and I did. when asked why I missed the payment, I explained that I'm working some 60 hours a week and in the middle of a home renovation.
Whenever you are late on a payment, they whack you for $39. That's understood. So I have no one to complain to but myself.
Last month, I was late again by 4 days. I totally forgot... so I ran to K-Mart (owned by Sears) and made a payment.
When I received the new statement, it included the $39 late payment fee, but my APR jumped from 14% to 27.2%
I phoned Sears and said. NO... I refuse to accept this. I went on to say "It may be legal for you to charge these rates, however it's totally unethical." I added "In this economy people are finding it hard enough to make minimum payments, here you are jumping the interest to impossible rates making it too easy for them to default"
The representative was really polite and said she would fill out a rate change request and to check back in 14 days. I thanked her for her courtesy and explained prime rate is nearly nothing. People are loosing jobs left and right. Charging 27% is an insult to the customers who have made Sears what they are today.
As expected, I received a letter from Sears Credit indicating that my request for a rate change was denied. Tonight, I plan to draft a letter to Sears. In it, I will include my cut up credit card and a check for the balance on my account. At this point, I refuse to do business with Sears or K-Mart.
I told this story to 2 people who have seen rate increases and neither of them have been late on payments. They have credit with other companies and both of them have had their credit lines decreased and interest rates increased.
America... expect to see banks reeling in lines of credit. Expect them to find creative ways to whack their customers recover from all the bad credit they will see over the coming years. Instead if working with customers (to keep them from defaulting) they will be working against customers.
Since I plan to pay off this card, contesting it further could/would seem to be a moot point. However, in their letter to me, they said that I was in default.
Default? I was unaware making a payment late and paying their 'late payment fee' constitutes being in default. Maybe their policy regards this differently. I thought default begins after missing a 2nd payment.
This year, I have plans to replace a 7 year old TV with a flat screen, replace a 9 year old Sears washer & dryer and a 20 year old Kenmore gas range while I continue doing home renovations. I'll be sure to tell them this in my letter... along with my dislike for their foreign made products.
Sears... I'm done with you. 
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read more blogs!
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jayej
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Feb 6 @ 7:50PM
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Good for you Chat.
Maybe they will get it when we all start voting with our pocket books.
J
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Blueschic
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Feb 6 @ 8:24PM
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Well Chat, you and I agree. Sears was my very first credit card some 29 years ago. After getting married my husband went on my card and he then established credit. To my knowledge the problems started within the last few years when Citibank took over. You are right, they are very quick to raise your interest rate. Once they do that, they require 6 months of not having a late payment before they will even consider lowering your interest rate. I could be wrong but didn't Citibank get part of the bailout money? It seems when they need a break they can get it, but to give one to customers in return is unthinkable! 
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lazareth
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Feb 6 @ 8:50PM
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good for you chat..... if every dissatisfied customer did this maybe policy would change.
Tell everyone you know...
I was told when I worked for a large corporation that customer service will make or break a company.
On average a satisfied customer will tell 3 people of their good experience... an unhappy customer will tell 7 people.......
and btw.... I won't shop Sears either.....
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thenewguy295
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Feb 6 @ 9:32PM
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Have you seen their Craftsman tools lately? Mostly made in China and not the quality they used to be. You can get the same cheap tools at a lot of the low end tool stores and they cost less.
I got a $39 late fee on my credit card. My fault I mailed it the day it was due but I paid it in full. Next statement they charged me the late fee. I no longer use that card. My other credit card company apparently forgives my occassional lateness as they have never charged me a late fee.
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alivenwell351
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Feb 6 @ 10:13PM
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I would hope EVERYONE would cease doing ANY business with Sears...
Sears rips off the elderly anytime they can...
A couple of years ago, the sump pump in the basement of my then 88 yr old Mom's condo went out. Out of habit she called Sears for an estimate. Some guy came over and gave her an estimate that was 2 1/2 times higher than her other 2. She politely told him thanks but no thanks. On her next Sears card statement, there was a $99 charge for the estimate. I called Sears and asked for a copy of the written notification they were supposed to give her that there would be a charge for the estimate as required by Ohio law. When they couldn't produce it, I then told them I expected it to be removed from the next statement, because she wouldn't pay it. They basically told me to fk myself.
She finally just paid it and sent the torn up card along with it, including a letter why after doing business with Sears for over 50 years, she'd never buy from them again. At last count, 11 of her friends have also sent their torn up Sears card in along with their last payments.
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bardnsage
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Feb 6 @ 10:13PM
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Of course they don't really give a crap about you, your long history of trading with them, or that you have always paid your bill.
There is a room full of people, who see your name, attached to a screen,,,, and the policy is the same for everyone. You are lucky if they are not in Deli. They may teach them English,,, but they don't teach them southern English,,,, so they may as well be talking to me in tongues.
I cut my cards up, long ago. I have one card,,,, that I keep frozen in a block of ice in the freezer, to gaurd against impusle purchases. Yeah, the Sham Wow looks good on TV,, but it just takes too long to bust all that ice, and I'll loose the paper if I write the number down and wait on it to thaw.
Your business wouldn't survive if you treated your customers like this,,,, why should theirs? And the politicians are all hot as hell to give them money,,, never questioning why the business is sucking in the first place. With customer service like that,,,, any amount of money you give them is just a band-aid on an amputation. Yeah,,, it makes you think they are doing something,,, but in the end,,,, this patient is going to die. So is Sears and K-Mart. The only thing distinguishing them from Walmart,,,, is their higher prices for the same bull shit quality,,,, and the names Kenmore and Craftsman. Sorry,,,, the name don't cut it anymore. I'll take Bosch and Mac thank-you.
When was the last time you tried to check out of a K-Mart? When was the last time you tried to get help at a K-Mart? When was the last time you torqued a Craftsman socket? When did Americans quit placing value on quality, and service?
Sears,,, a relict to a by-gone age,,, and just the name of their former glory. When you could proudly say,,, I bought it at Sears, and it meant something other than Looser. When V-8's were the rule,,, not the upgrade. When a plant manufacturing job was a good deal,,, and you could stay and retire if you wanted. When our government worried about the Russians,,, and our neighbors worried about each other,,,,and the only bailouts going on were in your Chriscraft, because it needed to soak in to dry.
Yep,,, the old joke,,,, "Is that a searsucker suit?" "Yes, I'm the sucker who bought it at Sears.",,,, is more truth than humor these days.
Cancel your accout,,,, and matte and frame that card,,,, as a reminder that our parents, and thier parents were smarter people, and better people, than we will ever be.
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Timber52
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Feb 6 @ 10:51PM
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My experience with Sears is not as drastic as some of the above.. but I was still pretty 'd off..
This happened several yrs ago.. and I still have not forgot it.. I was sooooo mad!!
My refridgerator tore up.. the little fan/defroster in the freezer quit.. which made the whole fridg quit cooling..
the fan was not very expensive.. around 20 or 30 dollars at the time..
I went to Sears.. told them what I needed.. they did not have it in stock.. and was a long ways to drive to get one..
I go.. can you get it shipped here to save time.. other wise.. I would have to wait for my check to clear.. before they would send it.. and for my check to even get to them.. I needed my fridg now.. not in a week or two..
I go.. I will pay you for it.. and they can send it to you.. you will already have the money.. oh no.. they could not do that..
I was so mad.. I told them a mouth full.. I was so mad.. I don't even remember what all I said to them.. and I did not care who heard me.. then I stormed out..
I went to a local dealer.. NOT SEARS.. they had a refernce book.. looked up the part.. they had it.. sold it to me.. only took my husband at the time about 10 minutes to fix it.. walla..
am I happy with Sears.. NOPE..
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missliss78
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Feb 6 @ 11:39PM
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Chat, I don't blame you a bit for dealing with this situation in this manner.
I, personally, have never had a bad experience with Sears, but they sure are not what they used to be.
My mom worked for Sears for many, many years. In 1985 they offered her & many other employees "early retirement" which she took & then started her 2nd career. In our area, it was evident where this was going. Never again could you go in the local Sears store & get the service they had long been known for. To this day, it is very rare that I shop Sears anymore. And I promise you, I will keep your situations & the others here in my mind before I consider shopping there again.
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