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.]Â
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%Â 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.
Rich… only customers who received the notice are affected.
Can you give the Chase address that is needed to opt out?
Sam… click the picture of the fine print above. It contains the address.
I 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.
Well, 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.
Do 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?
Well 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.
What’s in your wallet? Get a CapitalOne Card and you don’t have to put up with crazy stunts like this.
Infuriating 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.
this 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?!
An 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).
What 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
up 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
these ‘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.
To 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.”
Did 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!
Michelle 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.
And 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.
To 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. ]Â
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.
This 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.
Hey 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).
The 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
cash 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.
Three 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!
Ratejacking 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!!!
I received a different change in terms that seemed to eliminate the grace
period 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?
I 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.
1/16/07
Today 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.
Good 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.
Chase 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.
please 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.
I 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.
Chase 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.
I really liked Mike’s comment about people not realizing they don’t NEED a credit card.
Pardon 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
I 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.
I 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!
On 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
Okay, 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.
We 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.
I 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
was 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.
Let’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.)
Does 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
I, 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?
The 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.