![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-693892-100x100.png\")
Aaaand the Financial Apocalypse strikes again. Really, Chase must be desperate to get rid of business or something.
Aaaand the Financial Apocalypse strikes again. Really, Chase must be desperate to get rid of business or something.
![\"user-pic\"](\"/css/images/default.gif\")
What are you doing working for Chase, Barnabas Collins?
@concordia: Whatever his name is, he's kinda creeping me out... he's just there... grinning menacingly from the monitor...
ACK! Stop staring at me!
If you credit is good enough, can you not get a new card and balance transfer the loan away from chase?
@Corporate_guy: Chase charged a 3% fee to transfer these funds in. If its only been a couple of months that can have a huge impact on the true cost of the financing.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-14720-100x100.png\")
I sense some class-action lawyers salivating.
I'm sure the congresspeople the bankers spoke with will also be interested in this.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-287896-100x100.png\")
@lawnmowerdeth: Congress? You mean those fine people who think capping interest at a reasonable 36% are on our side?
I'm sure congress will allow this. They haven;t cared about you or me in Washington for a very long time now.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-410697-100x100.png\")
Wow, that's pretty funny. I was just thinking about transferring a balance through Chase....this help a lot!
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-151751-100x100.png\")
This being a materially adverse change, can't you decline to accept it somehow? I've seen people talk about this with credit cards where you contact the credit card company and refuse to accept the change. They don't let you actually use the card anymore, and you pay off your balance under the old terms until it's paid off and then the card is closed. What about something like that?
They're not offering that option. Their position is: our card agreement lets us change anything at any time. In theory, they claim they could change the rate to 200%, and say \"pay it off in 30 days, or the new rate applies.\"
@henwy:
Office of the Comptroller of the Currency:
The bank can generally change the account terms of credit cards or open-end lines of credit, including the interest rate, at any time, unless the open-end line of credit is secured by your home and is therefore subject to special rules limiting permissible changes in terms. The law requires notice to you when certain account terms, such as the interest rate, are changed. If the bank intends to change one of these loan terms, such as the interest rate, it must send the change in terms notice at least 15 days in advance of the change.
The 15-day advance notice requirement does not apply if
• the consumer has agreed to the change, or
• the change is due to delinquency (late payment) or default (such as going over the limit).
In both these instances, the bank must provide some notice prior to the effective date of the change, but there is no 15-day rule.
Be sure to review your account agreement, which is the contract governing your credit card account. It provides information on changes that may occur to your account.
If you received a change in terms notice, you should check to see whether the bank has provided a way to opt out of the change in terms. Some banks permit you to preserve the lower rate on the account by closing the account to future purchases and paying the balance under existing account terms. This may be important to you if you are carrying a balance.
Chase does not offer an option to keep the account and pay it off at the agreed to terms. The options they offer are:- accept the higher minimum payment and 10 fee- accept a higher interest rate- pay off and close the account
In my case, the minimum went from 2 to 5%.
At least they can get credit from chase. We applied and were turned down flat for not having enough of a credit file. Fico score is around 760. file is nearly 8 years old with about 15 different accounts. one inquiry. No debt on it whatsoever. Of course why take a risk when the government fives you billions of dollars with no accountability.
Chase added a $10 monthly transaction fee to my account as well. I checked my statement online yesterday, noticed the new charge and immediately called Chase Credit Cards. I was informed that a letter was sent out in November informing me of the change and options. Both the rep and account supervisor told me there was nothing they can do. I requested another copy of the letter sent to my address. Afterwards, I sent an email to Gerald A. Smith, CEO Credit Card Services expressing my displeasure with what Chase is doing.
Fortunately for me, my balance is fairly small and I will be able to pay it off in a couple of months. But for those who carry a large balance or are on a fixed income, this could hurt.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-116400-100x100.png\")
How much money did Chase bank receive from taxpayers again?
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-315381-100x100.png\")
@howie_in_az: Actually there were a few banks, including Chase who were asked by the gov't to take the money, even if they didn't need it.
The gov't didn't want only the \"bad banks\" to take the money as they thought this would cause a run on them
While you certainly can close your account with Chase, you cannot guarantee they will retain the original terms, per the US Office of the Comptroller of the Currency.
article here: [www.nakedcapitalism.com]
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-267279-100x100.png\")
Chase hates me. I have a Starbucks branded card from them and pay my balance in full each month
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-108612-100x100.png\")
@chiieddy: I do the same, with a Chase Amazon card, which I only use for Amazon purchases. That's the one card I will never let run up a balance, and the $25 gift rewards come frequently enough to make it feel worth it. (Got one yesterday, in fact.)
But first Citi betrayed me by jacking up my rates, then this week Discover did the same thing. Now I'm frantically paying off those balances and have resolved never to use either card again. I won't close the accounts because they represent a huge portion of my available credit. The only card I can rely on now is the Visa issued by my credit union.
I really wish that new credit card legislation had come a lot sooner.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-171970-100x100.png\")
@bluewyvern: i wish they'd had the stones to make it effective THIS YEAR. by rolling over & letting it become effective next year, all the banks are racing to cram abuse down everyone's throats.
this was something most anyone thinking about it ahead of time. rather like the \"OMGBONUSES\" all over the news now was a total no brainer expectation before the bailout was approved.
jail time for all so far as i'm concerned.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-351819-100x100.png\")
I <3 my chase amazon visa. It's like a slot machine that always pays off, burping out gift certificates. That whole doubling of rewards to 6% was spiffy too. Just in time for the whole christmas shopping season.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-16563-100x100.png\")
I'm beginning to understand the Great Depression's deep-seated loathing towards bankers came from.
We'll see if this lasts. Citi has several balance transfer options
now on a card I've paid off including a 5% until paid off option
(unless they pull something like this), and I plan on moving the
balance and closing the card. I doubt it will ding my credit too
badly. I was paying it off anyway and planned to, so the increase in
the minimum payment would have been annoying but not worth closing the
card. But I'm not going to pay $120/year. I woudn't even if they
didn't up the minimum.
But others are probably harder if they can't transfer. If you were
doing a $100 per month and it just went up to $250, that's $150 you
won't have each month. That is why they were bailed out - to strangle
those who had loans?
There are other low or zero introductory balance cards with no fees,
and if worse comes to worse I'll just move everything to my credit
union since I'd rather pay the interest to them even if it is more
than to the plastic loan sharks.
This was one of those \"15 day\" notice things they mailed out at the
end of the year (I'm out of town and get my mail forwarded so I don't
have it yet unless it is \"lost\").
That is the problem with doing restrictions \"starting July 2010\". All
the companies will just pull something like this by May 2010.
@tz:
Don't cancel the card - it could negatively affect your credit, and it won't be costing you (once the balance is paid off).
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-473526-100x100.png\")
When your ToS change, call them and say \"I don't accept\". I did this with Citi and my card will remain good, at the old terms until the expiration date on the card (5/2011). I'm saving 8% interest by not accepting the new terms.
@oneliketadow: That only works if the bank allows you to opt out. They are not required to, and Chase is apparently not giving that as an option.
What can we do about this? Seriously? The $10/month fee was not part of the original deal. What are our options for forcing them to go back to the original terms of the balance transfer? And taking my business elsewhere isn't an option, or else I wouldn't have made a large balance transfer to Chase to begin with!
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-99881-100x100.png\")
Same here, except mine's an Amazon card. Between my husband and me, we have six cards with various banks, all of which we pay in full each month. All carry some sort of rebate or points program that we work to the max. I'm waiting for the axe to fall. Sooner or later, they'll figure some way to shaft us for being \"deadbeats.\" Like huge annual fees or something.
How on Gods green earth do credit card companies get away with creating new fees everyday and getting away with it unless enough people complain (Congress/Consumers).
It seems like airlines are also plaigairizing from the credit card companies playbooks, such as attending seminars titled: Think fee, not free.
Barnabas Collins doesn't work for Chase. He is the poster boy because they both suck.
Chase is by far the absolute worst bank I've ever been involved with. They could care less about you and they don't pretend to care at all.
We are being told by Chase customer service reps that there is no option to cancel the card and pay according to original terms. The only options they will accept are to A) pay the account in full, B) Switch to a higher interest (7.99 for two years subject to increase after that) thus avoiding the fee and increased minimum payment or C) suck it up and accept the revised terms. I sent a certified letter stating that I wish to opt out of the change in terms, wish to cancel my card and pay off my loan according to the original terms. But, I don't know if this will work. I have also contacted my congressmen, the better business bureau, and local news media. I suggest that all affected do the same.
@lawnmowerdeth: Why would there be any action, much less a class action. Chase can change the terms, read the agreement into which one enters when they open the account.
You can reject any change and close the account and keep paying at the old rates, or pay the balance in full, or refinance the balance somewhere else, but there is nothing improper in what they are doing. Inadviseable- perhaps, unkind- perhaps, just not a nice thing to do - certainly. However they are not making money on these accounts and that is what they are chartered to do so changing the terms is indeed in their long term best interest.
@feckingmorons: Actually, the OP said that he transferred a $20,000 balance... and you think that the credit card companies aren't making money off of that?!? Not only that, but from the sounds of it, he is also paying only the minimum payment, or close to that, which is *almost* pure profit for the credit card companies. Still think their not making money?
Actually, whether they make money on it isn't all that clear. It all depends on how long the OP will continue to pay. If they think that he's only going to be financially afloat for another year based on his stats, chances are good they'll choke on his balance. When they do, it's most of 20k down the toilet.
It's this assessment that's causing them to raise minimum payments and create the other fees and crap. Everytime someone goes bankrupt and defaults on all their bills, the credit company loses almost all of the balance and interest. Since an extra $10-$20 a month is unlikely to be the death blow, they might as well suck a little more while they can. That's what my reasoning would be anyway.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-103766-100x100.png\")
@henwy: Sucking it out of people is right.
I come from a banking perspective, where the relationship is important. You may lose a little money on someone for a year or two, but keep them happy and you'll come out ahead in the long run.
But these days, it's like there is no \"long run.\" Even though I explained to Chase why I was a low-risk customer (mid-700s, never missed ANY revolving payment in my life), they still didn't see my angle that 4.99% was a fair--and profitable--rate. They are clearly using the increase as a transfer payment to cover their bad customers. In theory, bad customers should pay their OWN high rates for their risk profile. The creditor shouldn't be running good customers away in order to cover their short-term losses.
I've never worked in the credit card realm, but I've been in commercial and consumer lending for most of my career.
\"You can reject any change and close the account and keep paying at the old rates\"
This is the whole issue - you CAN'T do this. They aren't offering you the option to keep paying on the old terms.
Your choices are:
1. agree to the fee and the much higher minimum payment
2. accept a much higher rate
3. pay off the balance immediately
@JustThatGuy3: The changes that are being applied only apply to the Minimum Payment due on the account and the Monthly Service Charge. The APR on the account is not affected in the least. It is only those who do not want to have the higher Minimum Payment on the account that see a change to the amount of the APR assessed to the account. People who are complaining about the changes to the terms should review the card member agreement that Chase sends out to them. It is all covered in there as to the changes that can be implemented with prior notice per the OCC. Which Chase has followed through on, granted in one of the busiest times of the year when most people do not read the mail they receive until after the fact.And you are correct they are not offering people the option to close their account and keep the old terms. They don't hafta.They are a bank and they need to make a profit. People who have had long term low fixed APR's can continue to have them if they want the fee and the higher minimum payment.Things like this will start happening more often with the regulations the government wants to place on credit card companies. How can it not? And on a side note although it is true that Chase was given money by the government, it is only because they were told they had to take it so the bad banks wouldn't stand out like a sore thumb.
@feckingmorons: I am a victim of this new policy, and according to the notice I was sent, the only way to opt out is to close your account and pay off the entire balance immediately. I've had plenty of accounts jacked up to obnoxious rates before, and like you say, you just close your account and pay it off on the old terms. This is the first time I've seen where they've chained terms with no option to pay off over time on the old terms.
I kept the account open because even with the fee, I'd be better served paying off higher accounts, but I am hoping the lawyers get me some of the money I pay them back.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-591383-100x100.png\")
what about Wamu customers?
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-219805-100x100.png\")
@D148lo: I just got a mailer in today that was informing me that chase now owns my wamu card...I thumbed thru the legalese and noted that they arbitrarily raised my APR by almost 2%. Which isn't an issue, but sometimes I'll carry a balance for a month or two...bastards.
*sigh* gonna have to find someone else who wants my money I guess.
The banks have the power to 'tax' one at will. This is an example of 'taxation without representation.' I wonder if Chase per chance has any tea hanging around.
@ageshin: I say just break every fucking window in every bank. Stimulate the local economy, and let them spend those $ they seem so set on hoarding.
Wait til the new credit card regulations that were just approved by federal reserve go into effect. Credit Card companies will have to think of all new ways to trick their customers and we'll all be seeing our terms changing for the worse.
Watch for similar action from other credit card companies that are administered by Chase like FirstUSA. I get basically the same mailings from both cards.
I also noticed in their latest balance transfer offer that they have removed the maximum cap on the 3% balance transfer fee. Back in the day it was capped at about $75, then $150-200. Now there's no cap.
Not that I'm going to transfer anything now that they are putting hidden monthly fees on the transfers.
Obviously their purpose here is to jack up that low, low 2.9% interest rate that you are paying at the minimum monthly payment. Considering that they can and are getting free money from the government, it's not like they aren't profiting off of any loan they make that's being repaid.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-157517-100x100.png\")
I think we are going to see more of this, as we make our way e-e-e-v-e-r so s-l-o-o-o-o-o-wly to the point in time where the debtor's bill of rights takes effect. This was predictable (and, in fact, was predicted).
Maybe someone needs to start a pool on who does it next and when.
I think the $10/mo fee applies even if I don't have a balance, plus even if I \"pay it off\" I think they use double cycle billing, so I may have $2 in charges next month - plus the $10 and that will continue.
If I remember right, as long as the card is \"Canceled at consumer's request\" it doesn't ding your credit (other than the total credit line may shrink so you might, for example, go from 40% to 60% usage of the open lines). This information should be in the credit report (and is another reason to review them).
\"The right way to close a credit card account\" (and why you might not want to or want to wait):
I won't go into details, but I'm one of the affected here. We felt 4.99% in this rate environment was fair, but Chase still wanted 7.99% or $10 a month and 5% minimum.
The $120 a year is actually quite a bit higher, as the $10 monthly charge is assessed at a higher rate (8.99% in my case) and was already up to $10.02 when my statement arrived. Since the order of payments means you pay off your promo rate FIRST, the \"fee\" continues to compound continuously in the background.
Really, really f*cked up. I've never been treated like this by a card I've had for more than a decade, with NO defaults.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-21984-100x100.png\")
Maybe this is Chase's new \"profit recovery fee\"???
I'm certainly not taking Chase's side here, but as was mentioned above, this is legal, though it probably shouldn't be. They made a change to the terms of your contract. You can cancel the card, but you have to pay the terms of the original agreement. That means the *original* interest rate, not the promotional one. They gave you the promotional rate as an incentive to remain a customer. If you are no longer a customer, you get the 7.99% rate or whatever it was. I'm sure on their books you have a 7.99% rate, and the 3% difference is a write-off or however \"they\" do it for accounting (not a money guy here, so I don't know). (\"Who's 'they'?\" \"The ones writing it off!!\")
I don't know what your credit history is, but Chase does, and if they think they've caught you in a tight situation, that's why their doing this. Credit cards are not a great way to manage large amounts of debt, because things like this happen. However, if it's unsecured debt, you just have to take it. Maybe some publicity will make them show some mercy, but that's all you really have at this point.
FWIW, I have a promo transfer account with Chase and haven't seen this fee show up. They probably know I can bail on them at any minute, so they're content with what they're getting out of me now.
i got my last Bof A statement and found a $20.00 service charge. they had increased the minimum balance requirement from $1,000.00 to $10,000.00.when I complained they changed me back but I now have to pay for my blank checks.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-134363-100x100.png\")
What do you expect? Credit card companies now have a guaranteed 18 months to completely screw over the consumer before the legislature supposedly whips them into shape.
Maximize profits now, because it's a whole new ballgame soon.
Yah the latest is not including the transfer fee in the balance transfer promotional offer. I still kick myself for not catching that one. We had a Chase card of one type or another for many years. Had used them numerous times for their low/no interest for X months offers for vacations etc and simply always paid them off before they expired.
We got one of those offers 4 or 5 months ago, used it to get $5,000. Get the first month's statement and it had a $100 balance at 13.95%(the fee) and the $5,000 at 1.9%. And of course, payments go to the $5,000 first...
Can't blame Chase, I went back and read the terms and there was some new language in there that I did not grasp at the time, something along the lines of \"promotional rate applies only to the exact amount transferred/advanced by using the enclosed courtesy checks.\"
So now for a few months they will make an extra 8 or 10 bucks interest off of us, then never make another dollar off of us ever... so I guess it works out for everyone.
![\"user-pic\"](\"/mt-static/support/assets_c/userpics/userpic-159178-100x100.png\")
They can apply these terms any time they want, essentially over night... but terms that are pro consumer... those require retraining, and a complete overhaul of their networks and systems... 18 months minimum.
To all those citizens during the last decade that bought stuff --you know, the latest and greatest tech gizmos and such--and put all the balance on a credit card that you couldn't payoff when the monthly bill comes due, well, how do you feel now? Was it all worth it? Learn to save, invest and collect interest and dividends. Don't pay interest and fees.
@kwsventures: So how is your S&P 500 index fund doing, or did you put your money with Madoff, or perhaps with an oil fund when it was over $100.
At least people who bought bigscreens can enjoy them. Those that bought the SPX with $10000 last year have lost thousands with what to show for it?
Oh yea, treasuries are paying 2%? Banks less.
Invest and watch your principle shrink. Save and watch inflation destroy the value.
How do you feel now? Or do you believe it will come back (within 20 years)
It is not that saving and investing are unwise, but that it is as uncertain as anything else. You can plan to retire well and be hit by a car before you retire.
Moderation in all things. I'm specifically not saying to be a spendthrift, but I don't think the pre-reformation Scrooge had any joy in his wealth.
Good thing I have US Bank. A bank with real financial stability that isn't going to throw curveballs like this on people. Sure, they may not be the largest bank in the country, they're not too far off, but they definitely are the most secure in their future and finances. I recommend not using these \"big\" banks.
This is a pretty neat strategy. Build dependence on never ending cheap loans. When the time is right, rape your customers with fees and interest rate jacks, take them for all they can give, re-enforce said pillaging by repeatedly stating that whatever agreements they thought they had with you never actually existed, force as many as you can into default... and then at the climax of your pillaging, hit congress up for free money to \"save the economy\" using said self created defaults as proof that something horrible has/is/is about to happen...
Aaahhh, sweet sweet profit.
I long ago swore off Chase for any banking, especially credit cards. I had a credit card account and two charges showed up I did not recongnize. Unlike my other cards, when I filed disputes Chase acted as if \"I\" had done wrong and had to prove to them I deserved an investigation of those charges! The rare times I have had a problem charge with another bank, they immediately credit me and handle it. Not Chase, who made me feel like a criminal for filing a credit card dispute and making them had to waste their time on it.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-219008-100x100.png\")
My goodness! They have to pay for all that plastic to make cards with.
Chase is absolute slime. My account with them started in 1993 as a First Card Visa, then becoming Bank One through merger, and now it's merged again to Chase. As soon as Chase took over the account in March 2005 (never one late payment, never over limit from 1993-2005) they increased the APR to the default rate of 29.99% and absolutly refused to lower it even under threat of closing the account. I carry a balance on this card and was not previously in a position to pay it off, but it's been paid down to where it's now within $2K of zero. They've been so VERY generous in slowly reducing the APR (27.99% currently), but within 30-60 days the balance on the card will be paid in full. Zip. Nada. Paying off this card will be like the scene in Jeepers Creepers where the nasty winged creature gets hit in the chest with the harpoon... hehehe... SCREEEEECH! (sound of zero balance hitting account!) Anticipation is so sweet....
I am in the same situation as you all seem to be in with Chase. Minimum due increased by 150% and an added $10 a month service charge for no apparent reason.
Try this on for a reason to turn like the dogs they are on their customers:
It is my suspicion that Chase is willing to force as many accounts as possible to go into default and/or closure as a means to justify (more) money from the \"Bailout\". I would like to see Washington conduct some sort of investigation into this possible abuse of Federal funds and banking practices.
If a company is mismanaged it should be allowed to fail. The pattern of abuse has already been established. Why would anybody think it would change? Washington should not punish the consumer while rewarding the failing mismanaged companies, nor should it let another penny go without strict oversight.
This is NOT stimulating me, it is only encouraging me to NOT SPEND and to look for another way to find financial relief.
This \"Bailout\" was a VERY bad idea. How is this helping the consumer or the economy?
I have written to my Congressman, Senators and the Office of the Comptroller of Currency to complain (they regulate the banks). I suggest everybody do the same.
Push the \"bailout\" theory, that probably is the stimulus behind this treachery and let Washington know just how bad they misread the solution.
This group http://www.gslawny.com/ is looking into a class action suit. If you fill out a form on the site, they will contact you.
Apparently 700,000 or more people have been snared by Chase's coercive, unilateral, no-opt-out terms change (bump up minimum pmt by 2.5x, add nonsense $10 additional monthly fee), which is nothing more than coercion to \"re-negotiate\" the low-interest loans to a higher rate.
More info on this issue here:
http://www.ChangeInTerms.com/
(I have no affiliation with this site, but this guy seems focused on this very specific issue w/Chase, so am providing the link here).
As well, the following two law firms are exploring class-action lawsuits about this:
http://www.pinnaclelawgroup.com/
http://www.gslawny.com/lawyer-attorney-1383679.html
(No affiliation w/these either -- just providing the links for others).
This group http://www.gslawny.com/ is looking into a class action suit. If you fill out a form on the site, they will contact you.
I wonder if what Chase did might amount to fraud. Consider:
1) The mailed balance transfer checks and the marketing material attached to them closely resembled (or are nearly identical to) previous balance transfer checks and attached material. Users of previous checks had not experienced an immediate change in terms ($10/month fee and a forced accelerated payoff schedule) after using the checks. It was therefore reasonable for users of the checks to expect that there would be no changes in terms and that the terms of previous loans would be sustained following the new transaction. Nothing in the materials suggested that a change in terms would follow as a result of using the checks.
2) Only users of the mailed checks were subjected to the changes in terms, and the notice of this change was given immediately after use of the checks. This suggests that Chase had intended to use the checks as a mechanism to trick customers into a change of terms.
3) The fact that so many customers disapprove of the change of terms shows that they would not have agreed to use the balance transfer checks had they know of the coming change of terms.
4) The $10/month service charge was applied only to those that used the checks. This amounts to an additional charge of interest on the loans and is inconsistent with Chase's claim that the loan had a low, fixed interest rate.
5) The new terms trumped old agreements favorable to Chase's customers. For example, customers were permitted to pay as little as 2% of the balance per month at the low rates offered previously. This allowed them to enjoy the lower rate for a longer period of time. Customers also were not forced to pay a $10 month fee.
6) Chase should and would have known that customers would normally decline to use the checks if the customers were aware of the new terms.
In light of 1-6 above, it seems plausible that Chase intended the mailed material to deceive their customers and induce them into an arrangement with Chase for the purpose of enriching Chase. The expectation that customers would be fooled into using the checks is supported by Chase's alteration of terms only of those using the checks and by the checks' resemblance to previous checks. Had the changes in terms been broadly applied to other customers, Chase might argue simple coincidence, but such changes were not broadly applied. This shows that Chase targeted a group of customers.
![\"user-pic\"](\"http://consumerist.com/assets_c/userpics/userpic-98630-100x100.png\")
We should let Gordo know how we feel about this BS...
Gerald A. (Gordon) Smith, CEO - JP Morgan Chase Card Services
Phone: 302-282-3100
Fax: 302-282-3939
E-Mail Address: gordon.smith@chase.com
I have the same account - the Bank One 3.99% for life. Chase no longer likes those terms. The real trick here is that unlike Wells Fargo, WaMu, Citi and prior Chase terms and conditions - a change in terms can be rejected, so long as the account is closed, and can be paid off under the prior existing terms. Here, Chase gives you only the option to accept the terms or pay off the account immediately. I'm an attorney in the collection business and I cannot find any other collection attorney (including attorneys who collect for Chase) that believe this practice is legal. At the very least, Chase is not going to find any sympathetic judges. A real blunder on their part. When they say it applies to only a few accounts - that may be true. But these are paying accounts, in good standing for many years (mine since 2003), not any delinquent or abused accounts.
Just got my Chase bill and noticed the same changes, my so called 3.99% rate until the balance was paid in full as long as I didn't default - just changed for no apparent reason, from a 2% to a 5% monthly payment amount, and a $10 monthly fee, or a 7.99% rate at the old 2% monthly payment amount. This meant a change from $350 a month to $881 a month. Who can afford such an increase? I guess I should just tell them to put a lien on my house and they won't get any more money from me, my house isn't worth what I owe on it anyway. I have overcome tremendous losses over the last 3 years, struggled and pinched pennies, and am barely hanging on. I was counting on this payment, never defaulted, always paid a little extra and early. This has got to be illegal! What's next, my house payment going to do the same thing? I feel sick!
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As far as I know they can't change the terms without your agreement, I believe you have the option to reject the change the terms and close the account. If you're not planning on charging anything else on the card, call them and tell them you don't accept the changes and that you want to close your account, your transfer should stay at the original rate.
@PhilipBabalistic: If you want to opt out, your low interest loans will go to 27.99%! My minimum payment went for $220 to over $700 a month! How am I supposed to come up with that???