My credit card account data may have been compromised?

“We have learned that some credit card information for your FIA Card Services account may have been compromised at a third party location”, states a letter I received today from FIA Card Services. I call them up to find out who the third party in question was, but that information is apparently not available to me.

FIA Card Services has closed the account. I cannot access it online anymore. And new cards are already in the mail.

Last December, about 2 weeks after a short trip to Jamaica, a physical swipe of our card was made in another part of the island, even though the card was not missing. How could that happened? A copy of the card must have been made. FIA Card Services detected the discrepancy right away and confirmed with me on the phone that the swipe was a fraudulent one.

If I truly appreciate the level of protection offered, I wish I would know where and how the card information was compromised.

Credit Card Rate Increase

FIA Card Services is changing the terms of my credit card agreement. Credit cards can be very costly if not used with moderation and responsibility. I use credit cards essentially for the rewards and for the convenience. They also help my credit score as long as I am not late on my payments. Not only do I pay by the due date, but I also pay the balance in full each month.

The APR increase, from 14.99% to 24.99%, is for cash advances only. It does not apply to purchases which remains at 14.99%. It goes in effect in January 2008.

I would never use a credit card for cash advance, so this rate increase does not really annoy me. But a sentence in the notice caught my eyes : "We increased your APR due to the balances and APRs on this account." What does this mean exactly? Why are they increasing my rate? Could it be because I am a credit card deadbeat?