I can understand dropping credit limits as long as it does not affect current accounts but I have never understood the thinking when banks jack interest rates sky high and force a person to default on a credit card debt. It seems so obvious that they are running afoul of the law of unintended consequences. Interest rate increases should only affect future transactions, not current accounts. I hate to say it but the credit card business has been full of shady operators all along and some of them deserve to have people default on them. They have dreamed up many ways to encourage people to run up huge unsecured debts at high interest rates.
They KNOW it is going to happen.
The jacking up of the credit interest is to make the “principle” as high as possible at court judgment.
Remember these companies SELL this credit accounts.
An attorny will buy them for 3-12 cents on the dollar. (makes those credit consolodators a real suckers game)
So maximizing the principle adds to their bottom line. The bad credit is bundled just like the bad mortgages were.