Chase Credit Cards: How to Avoid 32.24% Interest*
Do you ignore those fine print notices that credit card issuers send out from time to time? They are often accompanied by a letter that says there will be a “change in terms,” but it leaves the details to the fine print enclosure.
“Change in terms” is bank speak for a price increase or change that is not in your financial best interest. If they were lowering your rates or easing any terms, they would boast about that in the letter.
Many [but not all] Chase credit cardholders just received an “IMPORTANT NOTICE OF CHANGE IN TERMS AND RIGHT TO OPT OUT” in the mail. For those who did not take the time to read it, here is the bad news and the good news:
*MOUSE PRINT: Your default interest rate is going up to 32.24%. But… you don’t have to pay it if you send them a letter by November 23 opting out of the change.
[The default interest rate refers to the penalty APR that will be used to calculate your finance charges if you pay late, are delinquent, or speak ill of the credit card company to your friends.]
This notice is unlike similar notices in that your account will not be closed if you reject the changes. But like similar notices, they don’t tell you what the current terms are, so you can’t compare old with new.
It does appear, however, that in additional to raising the default interest rate, they are adding terms of when the default rate will be triggered. (For example, a default late in the month will be treated as if you defaulted on the first day of the billing period.)
Another change that is not obvious because the prior terms are not restated is the apparent lifting of the cap on balance transfer fees. In the past, on some Chase cards, the maximum fee you could be charged was $75. Soon it will be unlimited.
Since most people have ignored this notice, they don’t realize the once in a blue moon opportunity they have been given to opt out of certain of the new provisions (APRs and default rules). Their silence will constitute acceptance of these terms, including the new 32.24% default interest rate. All that because they didn’t take the time to read the mouse print.
I just called Chase and they said that no rate increase was in the works (at least on my account). Does this apply to certain customers and not others? Is the original statement available online to look at? I’m freaking out because a 32.24% interest rate will kill me.
Comment by rich — November 13, 2006 @ 9:42 amRich… only customers who received the notice are affected.
Comment by Edgar — November 13, 2006 @ 9:54 amCan you give the Chase address that is needed to opt out?
Comment by Sam — November 13, 2006 @ 10:42 amSam… click the picture of the fine print above. It contains the address.
Comment by Edgar — November 13, 2006 @ 11:02 amI just got caught in this little “scam” this weekend. I never received a notice, and I should know because I read EVERYTHING that I get from credit card companies I have accounts with. I’m just waiting for them to sneak something thing in when I least expect it. Anyway, I called to inquire why my rate had jumped from 7.99% to 29.99% and was told of this notice that had gone out. I explained to then that I never received a notice so they offered to post-opt me out but that meant closing the card. Despite the fact that will mess with my FICO score, I agreed and got the rate back to 7.99%. I’m afraid that they don’t care that I will never use their credit services again…mess with me once, shame on you…mess with me twice, shame on me.
Comment by Bob — November 13, 2006 @ 11:37 amWell, at least they give the ability to say “no, don’t raise my interest rate” though it remains a sneaky and underhanded scam, though it is a smart move.
why in [deitie]’s name would anyone want a card with 32.24% interest? how much was it before? Even 8% is a pretty dreadfull rate AFAIK.
Comment by Alcari — November 13, 2006 @ 11:58 am[...] Then you should mail your opt-out notice within 10 days. Sneaky, those credit card companies. This applies to Chase credit card holders who got the little “notice” letter. [...]
Pingback by Don’t want to pay the 32.24% credit card rate? « Later On — November 13, 2006 @ 1:58 pmDo people actually trust credit card companies with extending them credit?
If you can’t pay off your credit card at the end of the month then you’re paying for something you can’t afford. Instead go get yourself a bank loan with predetermined terms. If you can’t handle the discipline of that money then you can’t handle the discipline of a credit card.
Obviously there are exceptions, but if you allow yourself to pay interest on money you don’t have, how will you ever get out of debt?
Comment by RS — November 14, 2006 @ 3:02 amWell spoken RS. However, there is no reason why banks should have the habit to just charge random fees and charges to their customers. The problem is that the free market does not work since all creditors pull the same tircks on you.
Comment by Jasper — November 14, 2006 @ 11:11 amWhat’s in your wallet? Get a CapitalOne Card and you don’t have to put up with crazy stunts like this.
Comment by Shawn — November 15, 2006 @ 11:50 amInfuriating is what it is. Need the letter be sent by registered mail? Even after the letter has been sent, the text reads to the effect that the same events may take place the following month or sometime thereafter.
It would seem to me that more than rejecting the rate and terms change it would behoove the cardholder to terminate the credit line – effectively freezing in current terms until the balance is paid in full. If someone had outstanding debt wouldn’t this be a smart way to go? How might this affect a persons credit rating? They know the odds and at some point in the future a notice may go overlooked.
In my opinion, this “Corporate Greed”, i.e. the unbridled quest for the bottom line, will ultimately be the undoing of all humanity. Fair and just simply no longer apply.
Comment by Tom — November 15, 2006 @ 1:25 pmthis is the exact reason why i got rid of all my credit cards. I discovered this little trick on my own. Just an FYI: those notices are slipped right in with all those “special offers” and other bs that comes with your bill. it is no seperate letter, looks just like an ad. you gotta give it to them, they know no one wants to read junk mail. Do these companies have no shame?!
Comment by Renee — November 20, 2006 @ 9:54 amAn option for some to carry on limits is to establish or re-establish credit.
For those who have no need for the above mentioned, a good option that was mentioned was to simply close your Chase account. There are other credit card companies who offer better deals (for those who really need their credit cards).
Comment by AB — November 20, 2006 @ 3:04 pmWhat the credit card companies gain in interest from duped customers, they lose
when those of us who catch onto their dirty tricks decide to pay off cards
with their equity lines and cut up the plastic.
More and more people are discovering how they are being robbed blind, and give
Comment by JNB — November 20, 2006 @ 3:24 pmup their credit cards. Who wants to be in bondage to a piece of plastic? And,
I personally just hate it when they send those blank checks through the mail.
How easy it would be for someone to steal them and forge my name. Again, about
the only way you can get them to stop that practice is to just close your
account.
I don’t know about CHASE but the last credit card company that sent me one of
Comment by EKW — November 21, 2006 @ 10:06 amthese ‘opt-out’ meant I was choosing to close my account because I didn’t agree with the terms.
Don’t forget that they are also eliminating the grace period on purchases. Instead of having until the bill due date to pay before being charged interest on new purchases, that hefty bill rate gets slapped on you the second the transaction goes through– regardless of whether you’re carrying a balance or not!
So, if you’re a responsible consumer and pay your balance in full every month, you will still be hit with a huge interest rate (the same as what’s given to people who pay late) the moment you use the card. This of course completely negates the purpose of the credit card.
I wrote Chase and rejected their change in terms, and told them that any attempt to apply the new terms or the new grace period would be taken as an act of hostility. I also told them that if they ccan’t get by on the 1.5% service charge paid by the merchant for the privilege of using the card, the hefty annual fee, and the revenue gotten by selling space on their advertising inserts, they didn’t deserve to be in business.
So far I haven’t heard from them yet.
Comment by R A Williams — November 21, 2006 @ 12:25 pmTo R.A. Williams,
The grace period is NOT being eliminated (although one could get that impression reading their changes.
The next sentence in the agreement says, “However, we do not charge periodic finance charges on new purchases billed during a billing cycle if we receive payment of your New Balance on your previous billing statement by the date and time your payment was due.”
Comment by Edgar — November 21, 2006 @ 2:04 pmDid you know that credit card companies can change the terms of your contract at any time? That’s just one of the credit card traps that can trip up consumers and lead to spiraling debt. Consumers Union, the nonprofit publisher of Consumer Reports, has put together a lighthearted animated holiday-themed satire about abusive credit card fees and practices. Check out “It’s Always Christmas Time (for VISA)” at http://www.creditcardreform.org. Be sure to take action after viewing the animation!
Comment by Michelle Jun — November 21, 2006 @ 8:31 pmMichelle Jun
Consumers Union
http://www.consumersunion.org
RAWilliams>”…I also told them that if they ccan’t get by on the 1.5% service charge paid by the merchant for the privilege of using the card…”
Last I heard, these rates were typically 3%.
As for charging me interest at time of purchase? I will immmediately close that account and start using checks again.
Comment by RS — November 22, 2006 @ 1:23 amAnd as Edgar said, last I heard they don’t charge interest at the time of purchase if you were paid in full the previous month.
Card companies can also, change your interest rates to the highest default level if: they determine that someone has been late on any, that is, any other payment to another credit card company, utility company, house payment, or automotive payments, just one late payment and they can say that you have defaulted on terms set. This should not be allowed by any legitimate business. These are worst than “MAFIA” type terms that you see in the movies.
Comment by ML Lowery — November 24, 2006 @ 11:58 pmTo Edgar:
The notice I received did not include a \\\”However, we do not charge…\\\” clause. I agree the discussion of the grace period was extremely vague and could indeed be interpreted as elimination of the grace period. My (somewhat pessicistic) guess is that they will implement it that way at least some of the time. After the change goes in, anyone who has to carry a balance would no longer have the grace period at all.
It takes very little to be construed as having a \\\”late\\\” payment. If they have the check in their hands for several days before cashing it or posting it to the account, they reserve the right to call the payment \\\”late\\\” and bill you electronically. If you catch it and put in a call you can get the extra charges reversed (I\\\’ve had to do that) but a person who\\\’s out of town or who can\\\’t get to the statement right away is out of luck.
[EDGAR REPLIES: The notice is an AMENDMENT to the primary agreement, it is not a complete re-write of it. So, only the new language is included. The primary agreement contains the \\\"however\\\" sentence. ]
To RS:
Not all of what the merchant pays goes to the card provider (Chase). A portion goes to Visa or MasterCard too. I assumed it was half but could be wrong.
Comment by R A Williams — November 27, 2006 @ 10:39 amThis is some shi+! I am haveing an issue with Chase because they changed the due date for no aparent reason. This messed up my weekly automatic payments and one month was short $10. I went from 3.99% to 14.24% and have been with them for years with no late payments. Any suggestions?
Edgar replies: Due dates vary by a few days each month for all credit cards. That is why some months have 28 days in the billing cycle, others could have 32 or more. If they really did change your date by several weeks, I would contact customer service to see if they will reverse their decision, since you were not forewarned of the change. Frankly, unless you have stopped using this card, I don\\\’t know how you can make \\\”automatic\\\” weekly payments, since presumably your balance varies all the time.
Comment by LVAquaman — November 29, 2006 @ 12:57 amHey LVAquaman,
I had a similar issue with Chase when my due date went from the first of the month to suddenly being the end of the previous month, a subtle change of only a few days, put important if you are in the habit of paying bills the same time each month (or have electronic payments set up). I phoned Chase and informed them of the fact, and was able to select a payment schedule at the beginning of the month, rather than the end. My suggestion: give them a call and tell them. If you have been paying on time for a long period, they are pretty understanding, at least in my experience (I wasn’t slapped with any fees).
Comment by Skip B — November 30, 2006 @ 10:29 amThe entire credit card business has degenerated into little more than a massive bait and switch enterpri
enterprise. They promise you “A” and you end up with “B” because of the kind of tactics
described above.
Take my advice get a bank loan and pay off your debt. Chances are that your monthly loan
payment will be less that what you owe on your cards. Then CUT UP THE CARDS and get a debit
card that can second as a credit card for things like deposits on hotel rooms or car rentals.
WHat many people don’t realize is that they need a credit card because they HAVE a credit card.
In other words, they don’t have cash to pay for stuff because a large sum of money goes toward
paying off the monthly credit card bill.
I was amazed after I ditched the cards and consolidated my loans that I actually had
Comment by Mike — November 30, 2006 @ 11:01 amcash in my pocket to pay for things that I used to have to charge on my credit cards.
My husbands Chase card went to the 32% interest. AFTER we closed the account. Any one know the laws in Michigan limiting the rates these companies can charge? It will take years to pay this off.
Comment by Renee — November 30, 2006 @ 6:35 pmThree things.
1. I was ratejacked about a half year ago to around 30% on two Chase cards as well, and have NEVER had any lates with anybody, anytime, anywhere. This happened on both my Visa Signature they account they bought from First USA/Bank One and on my Chase branded Continental card.
There was actually NO notice that I received, but I forced them to send me a notice. (maybe a bad move in retrospect?) Turns out, I was ratejacked due to “high utilization” and on other accounts, and accounts that weren’t old enough.
To me, it sounds like they’ve made the default rate apply to any damn thing they like, including non-defaults! I bet that’s not legal, since it IS called a default rate. It would seem that bait & switch laws would be invoked at this point.
Here’s two FTC links:
http://www.ftc.gov/bcp/guides/baitads-gd.htm
http://www.ftc.gov/bcp/conline/pubs/buspubs/ad-faqs.htm
So what do you guys, think? Is it even allowed to put you on default rate if you didn’t meet any of their default guidelines?!
2. With my November online statements, I just got a new notice that effectively eliminates the grace period. Finance charges begin to accrue the SECOND a charge hits.
So, yes, guys… even if they haven’t taken grace period yet… they will!
I can post the verbiage from this if you like.
3. Lastly, get this — as this really adds insult to injury… A few months whie after they ratejacked me, they sent me a letter that I’ve been such an ace, world class customer that they’ve upgraded my Continental Card to a WORLD Continental Card. This is a premier black Mastercard with “no preset spending limit”.
Great, now I charge all I want at nearly 30% interest, with no grace period. Just beautiful!
** What to do?
First, I’m personally game for up for legal action. Don’t know where to start, but I’d love to do it.
Second, here’s something I think EVERYONE here should do. I think we should all go to investment boards, like Motley Fool & some of the Yahoo gruops, and let investors know about this. While Chase’s profitability is UP, investing is a company like this is actually unwise in anything but the short terms.
Anti-customer actions like this lead to long term attrition (loss of customers) AND significant legal losses over time. Investors should be pulling out their money now… and THAT is also something I know that Chase will listen to. All public corporation try to please investors first and foremost. If you can get investors to pull out due to certain activities, then you have a very real voice. A fighting chance. So let’s all tell investors everywhere about this!
Comment by Chase is Evil — December 3, 2006 @ 1:42 pmRatejacking sucks and CHASE is found GUILTY AS CHARGED! They’re the only creditor I have that’s doing this and I can’t wait to be free of what should be illegal practices. I will NEVER use a CHASE CREDIT CARD AGAIN!!!
Comment by Miguel — December 5, 2006 @ 11:19 pmI received a different change in terms that seemed to eliminate the grace
Comment by Another Tom — December 8, 2006 @ 12:31 pmperiod on purchases altogether:
(https://resources.chase.com/resources/INW12105.pdf)
When I called for clarification “April” told me all it meant was that finance
charges would be calculated from transaction date as opposed to posting date,
but the grace period if paid in full by the due date still applied. I asked her
to send that in writing with the current full cardmember agreement. Should
make for good bathroom reading…
Wow! Some good ideas from Mike (Nov 30) and evil (Dec 3)
Just some comments:
1) Getting rid of credit cards is good if possible. Replacing them with debit cards is risky. True, you can only charge against the money you have (so no credit) but if your card gets stolen, you typically have little recourse in getting money back that was stolen from your account…sort of like having your ATM card stolen along with the pin. I guess there’s always the checkbook…or (for now) more discipline in using your credit card. Force yourself to pay them off every month or else stop charging until you can pay it off. As soon as you maintain a balance, you pay interest on every purchase from the day you purchase. If there’s no balanace you (currently) pay no interest on charges if you pay it off at the next bill….zero% interest for one month! (However ss mentioned, don’t expect this to last forever.)
2) Getting the stock market involved in shutting down bad businesses sounds great! But one thing I noticed is that most companies would rather go bankrupt than give up their sweet earnings…stupid, but they don’t seem to care. However, if they go under, others will come to take their place and begin to offer better rates…the true concept of supply and demand at it’s best. Great idea, evil. How do we start? Can we get all the mutual funds to stop funding those companies? How?
Comment by RS — December 9, 2006 @ 1:00 pmI wrote chase to decline these terms, they responded with two letters: one said no changes would be made to the account, the other said that they couldn’t honor my request and that the rate will still go up the 300%. I propomptly wrote back and sent copies of all documents and their two contradicting letters. I also filed a formal complaint with the Office of the Controller of the Currency, (http://www.occ.treas.gov/) giving them copies of all documents and their contradicting letters. I got a personal call left on my answering machine from the Office of the Vp of Chase asking to speak with me. Then I got a letter from them saying the one letter was sent in error and that my rates would not increase since I sent them the letter. I urge everybody to file a formal complaint the OCC.
Comment by K-Dawg — December 15, 2006 @ 12:50 pm1/16/07
Comment by John P — January 16, 2007 @ 7:59 pmToday I received the Chase change in terms notice with the right to opt out. I immediately called Chase and asked about the “opt out” choice. The agent told me that if I opt out, my APR will remain the same but my card will be cancelled. (Rate going from 5.99% to 7.99%). I asked the reason for the increase and she told me it was due to my present credit rating. Huh! My credit rating is very high. So high, in fact, that in buying my present car, the bank lowered my loan rate because of my high credit score. I am choosing to opt out and terminate my dealings with Chase when the balance is “0″.
I have recently had Chase hike up my rate without notice. From 9.99 to 29.99% due to “credit reasons”. Funny, since my credit has done nothing but get better over the last few years in which they did not see a need to raise my rate. They claim they sent me notice of the changes but I never received the notices and they don’t have proof.
Where I live most courts would require some kind of proof (Certified Return Receipt) if the recipient claims
to not have received it. Thus, when I told Chase to reduce the rate and resend the notice and give me time to respond (decline) they refused. Obvious they don’t want me as a customer any more.
This is how class action law suits begin.
In the meantime, I took out a low rate loan at my credit union to pay off this debt. My payments will now be lower and the balance will be paid off faster. I should have done this sooner.
The best way to fight companies like Chase is to stop being a customer. But for those that don’t have the ability to do so, then the courts or government needs to step in and stop unfair practices such as these.
In fact, the laws need to be changed regarding opt-ins/opt-outs. In the case of them sending a notice to change contractual terms then it a lack of response by the customers should automatically be seen as a decline in the changes proposed.
They should only be allowed to make changes when they receive a signed response indicating such.
If anyone knows where to start to pursue such changes in the law please post a response.
Thanks.
Comment by Shawn F. — January 17, 2007 @ 9:54 amGood idea to make it a law that if a customer does not respond, no changes could be made. The only way to change the law is to write your Congressperson. Unfortunately, Congress recently passed credit card laws that favor the credit card companies, so they are not likely to take any action. Write your congressperson nonetheless. Visit http://www.house.gov to find your representative, then write them to let them know you are not happy that you are not protected as a consumer when it comes to credit card companies.
Comment by K-Dawg — January 18, 2007 @ 1:02 pmChase just sent me a notice that my rate would go up to 32.24% interest. It is no problem for me to pay off the balance, but the practice violates all business ethics. I am filing a complaint with the Comptroller of the Currency http://www.occ.treas.gov/ (go to Consumer Complaints) they have an on-line form you can print out and mail. In addition I am urging all credit card affiliates with Chase, ie. Disney, Amazon, etc to discontinue their association with the robber corporation Chase. I urge others to write these affiliates to pressure Chase to value their consumers more and cease such practices.
Comment by Infuriated — January 22, 2007 @ 2:16 amplease be advised that you do have more than 30 days from the date the change in terms was sent to opt out & close the account to keep your balances at the current terms. its not brain surgery . and the print isnt difficult to read. you should not trash every piece of mail you get from credit card companies. most of these chnge in therms that are sent out affect people who are a risk to the credit card companies. If you have defaulted with other accounts that you agreed to pay other credit card companies that extend credit to you are made aware by the information that the card companies you have defaulted on report to the credit bureaus. if you have defaulted on these other accounts how can we be so sure you wont default with ours.
Comment by an apr advisor — January 23, 2007 @ 3:23 pmI recently received a similar change in terms notice from Chase — my APR was going to go up to 9.99% (it’s currently 7.99).
However, my notice differs from the notice shown above (the clickable image) in two revealing ways. Rather than incuding a phone number to call for information, the new notice instructs the card holder to call the number on the back of their card. The old notice reads “If you send such a letter, these changes will not apply. If your account is open, it will continue to be available for your use.” The new notice entirely omits that second sentence.
Many people will assume that they are required to pay off the balance and close the account if they refuse to accept the changes — many of us have received such notices in the past. This is how I originally interpretted the letter. Fortunately, I took the time to call and was suprised to learn that the APR would not change and the account would remain open if I elected to opt out with a letter.
One is stunned to ponder the number of people have been swindled by these unethical practices. I will be paying off my Chase cards soon and closing the account.
Comment by D Manemann — January 28, 2007 @ 1:36 pmChase just reduced the grace period, my balance used to be due around the 22nd, now its the 17th. My statement still ends around the 29th.
I keep it because I pay in full and get 5 percent off gas, but they are doing a little dance and it is up to the consumer to either keep up or end their relationship with the company.
Comment by ChaseMeIfYouCan — January 30, 2007 @ 5:12 pmI really liked Mike’s comment about people not realizing they don’t NEED a credit card.
Comment by Chase Your Tail Chase — February 5, 2007 @ 12:21 amPardon the double negative. Translation: We don’t need credit cards–if we’re living
within in our means. Mike says that people think they need a credit cards because they
HAVE a credit card. I also liked “Infuriated” ’s idea about contacting Disney and
Amazon. Chase’s unscrupulous behavior has been going on for some time in several
iterations. Let me give you the pedigree if you don’t have it already. Bank One
bought First USA. Bank One was purchased by Chase. Do what you must, short of
selling your soul, to get rid of these okole (gluteus maximus) pukas (holes)–Hawaiian
term tailor made for these folks. Perhaps we should all start consuming less and
living more simply.
even if you sign the opt out clause they can still jack you. I am a graduate student, and when I got an0% apr for a year, it seemed a great way to consolidate my cards and make a dent on the principle. Well, despite not paying late, and a credit rating of over 700, my rate was raised from that 0% to 32.24%. When I called to find out why, they told me my income wasn’t enough. Its the exact same as it was when I first applied for, and received the card. I pointed that out to them, then they cited that I had a high income to debt ratio. I reminded them I was a student, and that my ITD ratio had actually decrewd in the since I consolidated my debt, and had reduced it. They then told me that I had opened too many accounts, which was a lie. They then told me that because I had made one late payment (which my bank says was transferred THAT day, and wasn’t late) that I was now considered default. My bank is trying to help me with this mess, and in themantime, I’m being royally screwed. My bank ultimately gave me a personal loan, and even LOWWERED the apr to help me out. Which is why chase sucks it, and Wells Fargo rocks. bg
Comment by lina — February 6, 2007 @ 10:32 pmI got hit with this bait and switch as well. Luckily my balance (one 2k purchase) is fully on a promotional APR (3.9% for life of balance) which is exempt from the new rate. Regardless I will no longer be using this card as my primary, I’ll just keep it around for emergencies. I strongly recommend that if you have a large balance and can not live with such a high rate to walk into a local wells fargo or credit union and look at the line of credit or fixed personal loan options. I agree with the person above, a personal banker at wells fargo actually does care about you as a customer and they have a plethora of products to help you out with. They too are sales people but they are 1000% more professional, courteous and caring then these CHASE ratejacking bait and switchers.
Comment by Tim — February 13, 2007 @ 10:36 pmI just discovered this yesterday. I received a tiny notice in the mail about change of terms to my credit card. They were raising my rate to 29 percent!
I called them and was told that this was due to my credit ratinf…(which is
excellent) I opted out and cancelled the card. I will be paying my balance in full today.
I will NEVER do business with Chase again!
Read those little fine-print mailings!
Comment by Stan — February 15, 2007 @ 11:27 amOn a Chase business card (which was formerly a Huntington card), we just received the dreaded “no grace period” notice. Nothing’s changed with the interest rate, but the lack of a grace period makes the card useless for regular business charges. Thankfully we have already switched to a different card. I have the notice here:
http://www.gatetek.com/ChaseNotice.gif
As I read it, this completely eliminates the grace period, which is different from what is enclosed in your notice above. Notice they also don’t provide a way to opt out of this one. I plan on closing the account. Do you interpret the notice differently?
-David
Comment by David — February 21, 2007 @ 4:43 pmOkay, I’m sorry I posted that before talking to customer service. I haven’t done so yet but will do so for clarification.
Second point: All of the people posting that they were “rate jacked”: You do realize that the “default rate” only applies once you’re put on the default rate, right? If they increase the default rate, it doesn’t affect your account at all until that rate applies to you. That’s usually due to late payments to them, but they sometimes do apply it just due to other credit rating problems. So if you’ve received a notice that they are changing the default rate, that doesn’t mean it’s the rate you will pay. If you’ve received a notice that your account is being put on the default rate, that’s a different matter, and you will now pay the ridiculous rate. 32.25% is high, but they’ve always been high because it only applies to very poor credit risks. 5-10 years ago it was 24.95% or whatever the maximum allowed by law was.
Point being, just like I was perhaps too quick to jump to conclusions on the grace period (due to a poorly worded notice), it seems some of you are jumping to an incorrect conclusion regarding your rate. Make sure that rate applies to you before swearing never to do business with Chase.
Not that I think Chase isn’t evil – certainly they are.
Comment by David — February 21, 2007 @ 4:49 pmWe have excellent credit. Our February 07′ bill indicated the interest rate was being raised from 6.9% to 17.49%. We didn’t receive any notice by mail. When I called Chase, they said I would have to close the account to freeze the interest rate at 6.9%. I informed the APR agent that I was not going to be locked out of an account that has always been in good standing. I told them that they are engaging in unethical and deceptive lending practices. I was going to keep the account open under protest and would be filing with the OCC, OTS, BBB, the three credit reporting agencies, the attorney general, congressman, assemblyman, and any other agency connected with the handling of comsumer complaints! I called back two days later to let Chase know that I was going to be transfering my balance to a new 0% interest rate card, and to my surprise, my interest rate was magically 7.9% now. Chase must be getting pressure from their customers. To add insult to injury, Bank of America, formally, MBNA, raised our rates from 10.99% to 25.99%. I am in the process of requesting B of A’s reasoning for inflating our rates. I have spent two weeks trying to clear up this mess. Let’s all get together and do a class action suit. Chevy Chase Bank was just sued for 16.1 million with a settlement in July 2006.
Comment by Darlene — March 4, 2007 @ 9:58 pmI agree…They should be sued. Even though the attorneys will make out with all
the winnings the consumers will benefit in the future by hopefully preventing them
and other Banks/Credit Card lenders from “rate jacking” in the future.
FYI..my rate was definitely jacked…not the default but the standard rate. I luckily
Comment by Shawn F. — March 30, 2007 @ 12:21 pmwas able to borrow from my credit union (with a rate lower than my original Chase
rate) to pay off the balance.
I am a responsible user of credit without a single late fee or over limit in my history. When I recently opened my new business I relied more heavily on my credit cards and allowed the balance of my 5 credit cards to rise to an overall average of 90% of my available credit. I knew that this would effect my FICO score (which has gone from 720 to 690) but was SHOCKED to receiver a letter from Chase of Wilmington, DE that my interest rate was jumping to 32.24%!!!
Not because of any default but simply because of the increase in the use of my AVAILABLE credit.
I am fortunate that my business is doing well sooner than I might have expected so I am mailing a check for $3000 today and then for the remainder of the balance in 3 weeks, but if this had happened to me 2 months back or if I wasn’t doing as well at the moment; this would have buried me!
I am contacting my Representatives. (Who are hopefully, not on a Chase funded vacation) individually as well as through Consumers Union (here, https://secure.npsite.org/cu/site/Advocacy?JServSessionIdr006=r38kd90gq1.app14b&cmd=display&page=UserAction&id=1447)
I am also filing a complaint with the OCC. (Link to PDF form here, ‘filing a formal complaint’ http://www.occ.treas.gov/customer.htm)
Furthermore; I will ask each of my clients to not use a Chase credit card to pay for their services and gladly take the time to tell them why.
This is predatory, unethical and corrupt and is precisely the sort of thing that civilized society simply cannot allow.
Comment by Dennis — April 15, 2007 @ 3:36 pmLet’s all do our part and make sure that our representatives do their jobs so that we can go back to doing ours.
My unfortunate expertise in such matters has left me with this conclusion: those who access their credit in times of need and consitantly pay their bills on time but may carry a balance succeed in doing two things: they account for 60% of the profitability of the companies they are borrowing from, and ironically become vulnerable prey to the very same companies’ greed. I suppose they figure if a person can regularly pay 15% interest on a few thousand dollars then they should push them to consistantly pay double that amount(32%). But if they can’t, then they are welcome to transfer the debt they owe to some other bank and just move along! Highway robbery, pure and simple. Modern day scam artistry. New slogan: “B of A” We bite the hands that feed us. (In all practical senses, they may actually be shooting themselves in the foot.)
Comment by Victoria — April 18, 2007 @ 4:29 amDoes anyone know if there are governing bodies for card companies like Chase? or Consumer organizations to which I should file a complaint? This behavior is unacceptable. I hope it ultimately backfires on them. Like many customers, I received a recent notice of a change in the APR for my account. It took very little online research to learn that MANY customers with good credit, no delinquencies, late payments or other negative marks on their credit file are being unduly penalized because of vague (and often unsubstantiated) claims that they have too many accounts or their balances have become too high. While I suspect that there are enough unsuspecting consumers to make such policies profitable, it is my sincere belief that business practices such as these will ultimately cost them good customers! Fortunately, I am able to pay the bill and close the account… and I am closing it because I simply do not want to do business with this kind of company.
The whole thing got me to thinking- What kind of customer do they lose when I close my account? All accounts on my credit reports (from all three agencies) show NO late payments for the entire seven to ten year period documented. That’s right. While I aim to pay as much as possible each month, I always pay the minimum on time. I have a good FICO score. I am currently finishing graduate school and have relied on credit cards to help with unexpected costs during the past couple of years. In a few short weeks, I will begin a new job earning a fairly high income, and as I am used to living off very little, I will use the extra income to pay down my balances in the coming months whilst I prepare to buy my first home. Having an account with Chase at a low interest rate still means a bottom line profit. Because of the recent notice about changes in APR, they will lose a good, dependable customer. I would think that losing one good customer is more significant than hanging onto several bad ones, particularly if those accounts end up in default (ironically in part due to insane interest rates!) American consumers are overloaded with debt and when consumers are unable to pay, creditors lose millions! Increasing the financial burden for someone struggling will only push them closer to to default. It doesn’t take an MBA to see that. Or maybe I am missing something. Does defaulted debt help their bottom line?
Edgar replies: Isobel… here is one site where you can find the primary federal regulator of banks: http://www2.fdic.gov/idasp/main.asp . (Chase is regulated by the OCC.) Here is where to file consumer complaints once your find out which federal agency oversees it: http://www.fdic.gov/consumers/questions/consumer/agencies.html
Comment by Isobel — April 19, 2007 @ 9:48 pmI, too, received a notice from Chase stating that my purchases rate is jumping to 27.99% and if I do not want to accept the new rate, I must send them a letter and the account will be closed. If theey want to close my account, that’s fine by me. Unfortunately, I am not lucky enough to be able to pay the balance in full. Because of this, does anyone know if I can get them to stop charging interest once the account is closed? HA HA HA…yeah I know, probably not. But I was going to write my letter telling them:
I do not accept the interest rate increase. I agree to the closing of the account as stated in your notice. However, by closing the account, Chase agrees stop charging interest on the balance effective the date the account is closed. Monthly payments will be made to Chase until the balance is paid in full. By not responding to this letter, Chase accepts the terms stated in this notice.
What do you think? Won’t work, I’m sure, but, worth a shot?
Comment by Lisa L., IL — April 24, 2007 @ 11:11 pmThe rate increase isn’t the worst that Chase pulls. I applied for a Disney Chase card which offered a $40.00 discount if the card was approved & used right then to purchase Disney World tickets. The card was approved, but the card number was not pulled into the order to use the new card number for the purchase. Chase refused to honor the discount or import the card number to allow use with the disney purchase. They also threatened to make a negative report to the credit agencies when I told them to just close the account if they refused to honor thier offer.
Comment by yvonne — May 3, 2007 @ 9:52 amI too hate Chase They are killing me with high rate what can I do
Comment by Mona — May 7, 2007 @ 5:12 pmI have 2 perssonal accounts and 2 business Can not find anyone to tlk to at chase —-I have good credit but just can not pay off the balance right now —should I close? Need help
Folks, I just got off the phone with Chase on the same issue. Basically what Chase is doing is taking advantage of people on the edge by pushing them over with these unfair rates. Benificial has lowerr rates than these guys. I canceled my card. I will never do business with Chase ever for any reason….not even use an atm they own. I opted out and they still are charging me these rates.
Comment by Netchiefst — May 11, 2007 @ 3:39 pmRegarding change-in-terms opt-out letters: An interesting situation occurs when a supposedly upright company (for example, Amazon) puts its name on a card (Chase) and thereby becomes associated with the ultra-sleazy practice of putting the burden upon the consumer to opt out or else. Especially hypocritical in the case of Amazon, which bills itself as “earth’s most customer-centric company” (or DID bill itself; I just went to check, and that claim appears to have disappeared off the Amazon.com Help page, http://www.amazon.com/gp/help/customer/display.html; that’s where I remember seeing it, but perhaps it’s somewhere else on the site).
When I complained to Amazon (lotta good that would do), I was told that Amazon had contacted Chase to inquire about whether in fact Chase does the change-in-terms opt-out thing, and Chase denied that they do. But of course Chase does. I myself received a change-in-terms opt-out notice on my Amazon/Chase card back in November and had a long and pleasant conversation with a Chase supervisor (”Debbie”) who cheerfully admitted that Chase is guilty of the practice.
Boo hiss Amazon!!
Comment by richard abrams — May 22, 2007 @ 11:13 amI was recently the victim of the same Chase Credit Cart. My interest rate went up from 7.8% to 29.99%, based on a fact that I was late with my payment for 3 days. I contact them and the Chase customer service person told that it is in my agreement. I believe it probably was, but on my opinion this is just a legal games. This legal statement probably was written by corp. lawyers and such. But in reality it gives write to a credit company to do what they want with people. I think it is not legal issue rather than political. And it has to be some type of law witch will protect people from credit cart abuse and limit there power. Any idea how to start approaching that issue with US Government Organizations?
Comment by Marianna — May 30, 2007 @ 6:04 pmI’d like to know who actually did not get this rate increase. Seems as if Chase is gouging the middle class to increase profits. Maybe we could orgainize a grassroot effort to picket the Chase banks in our cities around the country. I’m closing my chase card and checking account. This is the only credit card company that has pulled this scam. I have never paid a bill late they told me that I had used a good percentage of my available credit. If i close the card now will they rate freeze at the 28.9%?? I say we get the info out via e mail and word of mouth. Chase is attmpting to bankrupt the middle class. Are we going to stand for this??????
Comment by Rich — June 14, 2007 @ 12:21 pmThe more I think about why would any goverment entity help the middle class in this matter. All the “fat cats” are benefiting from this arrangement. Remember the rich look out for the rich. Do you think a poor guy passed the legislation that allows the credit card companies to gouge the peole that utilize credit. Unless, we the consumers can have an impact on the creators of the legislation which is very difficult b/c we are not professional lobbyist with deep pockets. We will continue to get screwed in this unbalanced economy because as the economy continues to drop into the toilet more people will begin to depend on credit to survive and for those people it will be a quick end. Chase has taken the first step to drive a stake into the heart of the middle class. Thanks Chase and your local politicians who by the way get a raise every year ( around 20%) Lets boycott Chase and picket….who is with me!!!!
Comment by Rich — June 14, 2007 @ 3:30 pmWow! I missed a payment 1 day late, and my BP card went to I dont rem…18%. Then I missed a payment on my other chase card in may…went from 0 to 29.99… I figured my credit must be bad, but I got 3 new cards approved today and I am transfering to them. Chase is a total joke. NEVER have a EVER missed 2 payments in a row, or for more then 30 days ever!!! On ANY loan, and less then 30 days, they dont report…yet chase told me my performance was poor, and a few hours after I cancelled my card, I asked if they would just reopen the accounts, and he said my credit performance was poor. I said oh really? That means I have been missing payments, yet, less then 30 days late on only 1 payment is never generally reported to the credit burors. what a joke. BTW, Chase has banks EVERYWHERE here in chicagoland, and guess what, there always empty. I think there screwed now. Where NEVER going back, theres no question about it! DONT YOU DARE GO BACK EVER!!!!!!!!!!!!!!!!!!!NEVER FORGET for example of the way other banks treat you…citibank, I told them what happend, btw, I forgot to pay my citi card that month too ( I lost ALL my mail that month-long story) Citi hit me with the late pay default rate too, but did lower my rate to 12% from 26% and preserved one of my low rate 3.99 tier rate promo, AND offered to transfer my 2800 from chase for 6.99 for 1 year, AND wave the bal trans fee!!! Talk about day and night!!!
Comment by J Addison — June 15, 2007 @ 4:02 amdo you know why Chase and allthe large banks are based out os Deleware……the anser is shocking…..Delewar has the most leinient banking laws in the world….manly to make their own pockets fat:::..also the default apr cannot go higher than 29.99%……the real question you need yto ask is what and how do the calculate Effective Anual Presentage reates….don’t know what that is….then canel all your card and stop trying to support you life on credit…..mony is only good when you have it.
Comment by Troy — June 19, 2007 @ 6:16 pmAlso the terms and conditions really mean the can do what they want and when they want to…….stop complaining about Chase and read the fine print…..o yeah pre=aproved dosen’t mean anything……look up the word ..it mean BEFORE aproval..not hey alpy and get 10.000.00 like the paper indicates…stop the debit America is is up to you
Comment by Troy — June 19, 2007 @ 6:18 pmI work for Chase Credit cards. What people comment about how Chase is ripping them off is not the entirly the whole story. Remeber there is two sides to every story. Beofre an APR is raised due to something being reported to the credit reports, we do provide the card memeber a letter 60 days in advance (we are only required 45 days by law)letting the card memeber know the reason why we are raising the APR and they have the option to close the account down at that time to preserve the APR or except the change in terms. Most card memebers either choose to ingnore the letter or they just forget to call and just say they never got a letter. The only time we don’t send a letter is when the cusotmer is late and that is due ot the fact that is stated in the card member agreement that if a payment comes in late then we reserved the right to raise the APR. Again customers want a credit vcard so bad that they dfon’t ever read the terms of agreement before signing their name. Another thing not recieving a statement, being on vacation, or someone else was to pay the bill is no excuse for not making a payment on time. We do not have to waive fees we do that as a courtesy. The last thing I have to say is when you call you credit card companies or any company you do business with NEVER treat them with disrespect by yelling at them, demanding things, or threating them! They are only their to help you. They do not make the rules. Remeber the old saying “You catch more Bees with honey than you do with salt!”
Comment by John T — July 18, 2007 @ 10:02 amWhy do you blame the credit card company when for the most part it’s your fault that something has happened. Chase or any other company is NOT going to raise your APR, decrease your credit limit or any other account affecting issue. A credit card is nothing other than a LOAN, so when you lend money, you expect to be repaid, correct?? Yes, that is the same with a credit card company. when you run up a 5k balance and then stop making your payments on time because you had a bbq or because vacation and then call and act like it’s not your fault thats just ridiculous. Your an adult start acting like it and grow up. your big enough to charge it, your big enough to stay on top of your due date, APR and credit bureau reports.
Comment by Kyle A — July 20, 2007 @ 11:18 pmI read most of the complains, and my story no different from the rest of the group. Two time’s late payment my interest rate went from 7.5% to 29.99%. Nobody send me any letters or informed me of any interest rate changes. The nice lady who working for the Chase Bank sad that they send letter to you 60 days in advance, but I did not received one, so as majority of the people who complained. It is feels horrible to become victim of abuse. You literally become prisoners of the Chase Bank. (Funny that they make Chase TV Commercials with Tag Line Chase Freedom).
Comment by Marianna — July 21, 2007 @ 2:41 amThe question is where to find protection from Chase Credit Card ABUSE… It has to be some type of LAW, which prevents them to raised interest rate. They invite us to use there low interest rate and with a fist chance increasing it to 29.99% that the way they increase their revenue by skimming American People.
Whom to write to find a legal protection from the Credit Card Companies? In addition, create a new Law which will limited there terrorist activities.
Yes…..the old story…we sent you the notice your interest rate would double…yeah right!! Never received a thing. I certainly would have a heart attack knowing my interest rate would double! I called AAA Bank of America which is my credit card.
Comment by debbie — August 23, 2007 @ 7:12 pmThey told me different stories. I might add….I have never been late on any credit card or car payment..or anything. But…their second story was….well…we just rounded it out…averaged to what other banks are charging..that is how we came up with 24.99%. Keep in mind my previous interest was 12.29%. None of my other credit cards (3) are high. Hmmmm. How can you prove that they DID NOT send you out a notice.
YOU CAN”T!! Your are now at BANK OF AMERICAS MERCY!!!!!That is BS!!So..now I just called and closed my account…and I will pay it off today!! BANK OF AMERICA….SHAME ON YOU!!!!!!!!!!!!!!!I am going to take my money out of your bank…all of it!!
You cannot treat people like were idiots!! Debbie in Portland Oregon.
This reply is for John T.(Chase Employee) July 18 post….
First, John, you are probably correct that most people that claimed not to receive
letter stating the increase in APR, in fact, probably did receive it and neglected to read and/or call
to not accept the change. However, if a person claims they did not get the letter then
that person should get the benefit of the doubt unless Chase can prove it was received.
I know Chase cannot prove that anyone received them becuase they are sent regular mail
without Certified Return Receipt (which is what a court will want to prove a customer received it.
Chase should have granted those customers that claimed not to receive the letter
30-45 more days to decline the changes on their account.
What if all the Chase customers said they sent you letters stating they declined the change
and you stated you never received it and there was no proof?
Or, what if you just sent in letters stating that our new rate will be 0 percent unless
you respond to decline? I don’t think Chase would respond nor change the rate to 0.
Second, when I called to inquire as to why my rate was being raised it was claimed by the
Chase rep on the phone that my credit was worse. This was not true. I had not missed or
been late with any payment to them in over 2 years and I keep up with my credit score and
over the 3 years prior to the raise in interest my credit had done nothing but get better.
Chase was just abusing its power and hold over most customers since most could not pay
off their cards nor transfer to another card company/loan like I could.
Because of all this, I no longer will do business with Chase in any way. In fact, I was going to
apply for a Southwest Airlines credit card which would give me enough points to earn a free
flight but once I found out the card was backed by Chase I tore it up and all the others they
send me each month.
John, you are right “you catch more Bees with honey than with salt”. Remember that when
dealing with your “customers”. Even though many of the tactics used by Chase are currently
legal does not make them right and in the long run it will drive customers to use other
companies.
And, this posting is just a few of the people that have had this happen.
Comment by Shawn F. — October 1, 2007 @ 9:53 amDo an internet search and you will quickly find many other complaints regarding this same
tactic be pulled by Chase.
MY RATE ON MY CHASE CARD JUMPED TO 29.99% AND I STILL GET OFFERS FROM THEM FOR BALANCE TRANSFERS. I HAVE NEVER BEEN LATE ON ANY PAYMENTS. WHAT HAPPENS IS SENATE BILL S1309 OR HOUSE BILL S1395IS PASSES. WILL THE CREDIT COMPANYS HAVE TO REIMBURSE FOR ALL THE TIME THEY CHARGED INCREASED RATES ON PURCHASES PREVIOUSLY PURCHASED BEFORE THE INCREASE DAY?? WHAT HAPPENS IF YOU JUST REFUSE TO PAY THEM??? I THOUGH ABOUT IT MANY TIMES. IT IS UNSECURED DABT….. WHAT ARE THE REPROCUSSIONS???
Comment by MR. BPF — February 5, 2008 @ 5:58 pmIt has been 8 months since the last posting was added to this thread, but the Chase scam remains. Yesterday I got the same “Change In Terms” letter, raising the rate on my United card to 29.99% without any reason. They had done this to my Continental card a year ago, and now they targeted my other card. I didn’t even call them to know why, once I know I’d just hear bs. I NEVER missed a payment, either to Chase on anyone else, all my accounts are in a good standing, and my credit rating has been stable for a long period. Not the best of the world, but not the worst, either. Even so, I became another Chase target, and got ripped off. I agree with nearly everybody in this thread, it’s really a scam. Well, this will come at a cost to them. I work with Chase since 1998, and I had all types of accounts, including car loans, home equity loans, savings, checking, for me and my whole family. I’ll transfer everything to another bank, probably Citybank, and I’ll gladly become one more client lost by Chase. It’s unbeliavable how they keep doing this year after year, and nothing happens to them…
Comment by Prokton — October 24, 2008 @ 5:30 pmI have posted a letter to Gordon Smith, the CEO of Chase Card Services, to a Website that I have been working on feverishly in response to a “change in terms” notice raising minimum payments from 2% to 5% of the balance (and adding a $10/month “finance charge”) to a site I have been working on as a form of protest, ChangeinTerms.com. See the “About” page.
The actions by Chase described in my letter will most certainly put me, my family, and thousands of others in harm’s way financially as of January 2009.
This is the first year in my married life when I have not given my wife at least a token gift over the holidays (and we have never been extravagant – even in “good years,” our gift-giving limit has been a few hundred dollars); hence, Chase Card Services is truly, the “Grinch That Stole Christmas,” as far as we are concerned.
Comment by Dr Robert Lahm — December 26, 2008 @ 12:49 pmI recieved a call from chase saying that I am past due 7 days. I called told them that I didnot recieve a bill. I have 5 chase cards and never missed a payment for the last 3- 4 years. But the lady didnot want to help or listen to my situation and so I cancelled all my credit cards from chase. For few dollars in late fees and interest she lost my account. I was planning to finance my house thru chase but not any more. I have excellent credit and with a good job
Comment by N. Pandula — January 9, 2009 @ 1:16 pmI recently read the small print on my Macy’s card bill which said the annual % rate on the revolving amount was about 200%. We never go beyond 30 days (which is actually about 21 days), but I wonder how many people read the fine print?
Comment by Norma — January 10, 2009 @ 9:46 amwhats to stop my bank that my house mortgage is with from raising my 30yr fixed interest rate because “of market conditions” or because they just feel like it…
Comment by Chris — January 27, 2009 @ 7:35 pmi recently recieved a change of term on my chase card stating that my prime for life card would now be considered a prime plus 3.99% which i don’t know if it is legal due to the fact that this was originally a wachovia acct bought out by chase. years ago the notice claims the reason is to make my acct a more profitible acct. does anyone know if they can change the terms being that my original contract was with wachovia.let me know thank you.
Comment by annmarie — February 18, 2009 @ 12:08 amI just got dupped this month of March, from 9.99% to 14.99%… Should I feel lucky? that it’s not 32%. I just called Chase and same story, an orange and white letter was supposedly sent in January and I was suppose to reply by February 7th, I got a whole month to call them to close my account. Credit Card company wins again! and Again! and AGAIN!
Comment by Dereck — March 30, 2009 @ 8:45 pmI just found out my parents who has never had a late payment ever in their life was two days
Comment by wendy — July 10, 2009 @ 11:27 pmof paying due to the fact my father was sent to the hospital & we thought we were going to loose
him so my mother stayed overnights at the hospital, & my brother & I would take turns driving home
to get whatever my mother needed, long story short, our only concern was for our father to recover.
so everything else was secondary. So after all was done when my mother who is in her 70s returned
home was two days late & noticed that the rate increased, so she tried calling & everyone kept hanging
up on her & that was that. I did not believe story, so I myself tired to get this resolved & they
hung up on my four diffrent times within 45 min. They made so much money off of my parents in their
late 70s..& still tried to make more money during a life & death situation and only two days late with
never being late ever in a liftime..I could not believe this could happen in USA, I who really does not
cry left with tears that they could do something this tragic to my elderly parents.
dont ever do business with chase,i never will again,went over limit my new rate is 32.99 percent,what a scam,for a $300.00 payment they charge $200.00 in intrest.chase is … greedy …. [post edited]
Comment by lon neal — August 20, 2009 @ 7:25 pm