amended account agreement, WHAT?

Can anyone tell me what is going on? Maybe someone has experienced this before, I don't know! Is this some new ploy by the creditors to make even more money from us?

I got a letter the other day form Providian telling me that they were going to amend my credit card agreement. Well, it reads:

"We are amending your Visa/Mastercard Account Agreement: to increase the Annual Percentage Rates on your account; and to add a provision (or modify the existing provision) regarding the Default APR. Our decision to change your account terms may have been based inpart or on information obtained in a report from the reporting agency listed below."

They are increasing it 24.24% plus prime!!!!! I have a high balance, have been late a few times, but nothing past 30 days, and have been a good customer, at least so I thought! Has anyone else been through this? And are there any other creditors out there that are doing this?

They are using my other accounts I have on my credit report to justify the increased interest rate! I have other high balances, but nothing over 30 days, no lates, nothing. Just high balances! Why are they doing this? Anybody?

I have heard that some creditors have agreements providing for a rate increase if any accounts on your credit become delinquent.

Fax your questions to Providian and ask what's going on.

Personally, if I wasn't happy with the response, I'd probably sue. Well, first you want to find out what's going on, either call and record or send a quick fax.