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Chase credit-card holders beware of rate increases
As lawmakers worked out credit card reform legislation earlier this year, card issuers argued that tough restrictions would make credit costlier for consumers. Now that tough reform has been signed into law by President Barack Obama, some lenders are making good on those threats.A Pennsylvania consumer just received notice that her Chase credit card's minimum monthly payment would increase from 2 to 5 % of her total balance. Unfortunately, for this consumer she is carrying around a $35,000 credit card debt with Chase. This means that her monthly payment will skyrocket from $700 to almost $1700 a month.
Chase's explanation for this hike was stated as "due to the poor economy and the legislation that's been passed, Chase needs to recoup its funds, and will only be applying this increase to select accounts who continuously carry balances".
As a heads up, The Financial Times reported on Wednesday that Citibank is raising rates on millions of its customers in exactly the way the new legislation is supposed to prohibit.
Jeff Suher, Pittsburgh Consumer Attorney who specializes in the Fair Debt Collection Practices Act and the Fair Credit Reporting Act.
Jeff sues abusive debt collectors and helps consumers that have incorrect information on their credit reports.
6 Comments to "Chase credit-card holders beware of rate increases"
I have NEVER had even a late pyment in 10 years with Chase.My rate since last year has gone from 5.24% to 13.24% on 2-1-2010.
Posted by DJ
on February 1, 2010 at 04:51 AM
Cripes... wish I was privy to this news a while ago — I first heard of it last month when my 7.99% rate (which had been 3.99% but jumped because of late payment by a few days) jumped to 14.24%. Chase reneged on their promise to lower my 7.99% rate after crediting me the late fee. They claimed there was a mailing explaining the rate jump (not that I ever recevied) but that you could elect to close the account and keep your current rate until paid off... IF you responded by a July deadline. There was no mention of these change in terms or deadline on the bill itself or included with the bill. Now, it's non-negotiable. I'm furious.
Posted by knowware
on November 16, 2009 at 05:26 PM
Yeah, I wasn't paying attention and just got my new chase bill with my "new and improved interest rate".... It went from 5.99% to 12.24% and I am irate. I called them and canceled and the guy told me they sent me a letter and that I could have canceled when I got the letter, but I guess that is my fault.
Anyway his excuse was "the poor economy", so I asked him if ripping off the middle class so they (Chase) could make more money was a "new" way to stimulate the economy... he didn't have an answer.... so I canceled and plan on rolling over my $7000 balance to another card that has 0% for 1 year.
Thank you Chase, I have been a customer for 7 years and now you are losing me (and hopefully many others) because you guys have chosen to use the "bad economy" as an excuse to rip off customers... I mean what the hell??? Didn't you get "bailed out" with all the other failing big banks that required a bail-out to keep our economy from failing. This is nuts!!!
Anyway his excuse was "the poor economy", so I asked him if ripping off the middle class so they (Chase) could make more money was a "new" way to stimulate the economy... he didn't have an answer.... so I canceled and plan on rolling over my $7000 balance to another card that has 0% for 1 year.
Thank you Chase, I have been a customer for 7 years and now you are losing me (and hopefully many others) because you guys have chosen to use the "bad economy" as an excuse to rip off customers... I mean what the hell??? Didn't you get "bailed out" with all the other failing big banks that required a bail-out to keep our economy from failing. This is nuts!!!
Posted by Brian
on November 9, 2009 at 10:45 PM
I am also a victum of Chase credit card changing my minimum payment to 5%. This is fruad and poor buisness practice. Do they really think that infuriating loyal customers that pay their bills on time will help there future. Who came up with that idea, lets ripoff the people that pay their bills on time.
Posted by Kevin beske
on August 17, 2009 at 11:39 AM
The following is a comment from CHASE at Bankfirst.com....“The cardholders affected by the new minimums will be those considered “high risk,” who have been less than diligent about paying their account scrupulously in the past…
This was my replay which is still awaiting moderation, after 3 days!!!
That is what CHASE would like you to think! These cardholders have FIXED APR rate’s between 1.99 and 5.99….CHASE does not want to honor those rates anymore and the only card in they’re hand is to up the minimum payment in hopes that they will default into a high APR….They also offer to return your 2% minimum payment if you accept a much higher APR right now. It is EXTORTION and bait and switch, plain and simple….Also these cardholders have NEVER missed a payment or they would already be at a default rate….CHASE if you are going to make statements, WHY NOT STATE THE TRUTH!!! I for one am very tired of reading articles about how these are subprime cardholders…..They are in fact the best cardholders out there along with high credit scores!! THAT IS NOT WHAT CHASE WANTS…….THEY ARE NOT PROFITABLE!!!!
This was my replay which is still awaiting moderation, after 3 days!!!
That is what CHASE would like you to think! These cardholders have FIXED APR rate’s between 1.99 and 5.99….CHASE does not want to honor those rates anymore and the only card in they’re hand is to up the minimum payment in hopes that they will default into a high APR….They also offer to return your 2% minimum payment if you accept a much higher APR right now. It is EXTORTION and bait and switch, plain and simple….Also these cardholders have NEVER missed a payment or they would already be at a default rate….CHASE if you are going to make statements, WHY NOT STATE THE TRUTH!!! I for one am very tired of reading articles about how these are subprime cardholders…..They are in fact the best cardholders out there along with high credit scores!! THAT IS NOT WHAT CHASE WANTS…….THEY ARE NOT PROFITABLE!!!!
Posted by marge11
on July 10, 2009 at 11:36 PM
The following is a comment from CHASE at Bankfirst.com....“The cardholders affected by the new minimums will be those considered “high risk,” who have been less than diligent about paying their account scrupulously in the past…
This was my replay which is still awaiting moderation, after 3 days!!!
That is what CHASE would like you to think! These cardholders have FIXED APR rate’s between 1.99 and 5.99….CHASE does not want to honor those rates anymore and the only card in they’re hand is to up the minimum payment in hopes that they will default into a high APR….They also offer to return your 2% minimum payment if you accept a much higher APR right now. It is EXTORTION and bait and switch, plain and simple….Also these cardholders have NEVER missed a payment or they would already be at a default rate….CHASE if you are going to make statements, WHY NOT STATE THE TRUTH!!! I for one am very tired of reading articles about how these are subprime cardholders…..They are in fact the best cardholders out there along with high credit scores!! THAT IS NOT WHAT CHASE WANTS…….THEY ARE NOT PROFITABLE!!!!
This was my replay which is still awaiting moderation, after 3 days!!!
That is what CHASE would like you to think! These cardholders have FIXED APR rate’s between 1.99 and 5.99….CHASE does not want to honor those rates anymore and the only card in they’re hand is to up the minimum payment in hopes that they will default into a high APR….They also offer to return your 2% minimum payment if you accept a much higher APR right now. It is EXTORTION and bait and switch, plain and simple….Also these cardholders have NEVER missed a payment or they would already be at a default rate….CHASE if you are going to make statements, WHY NOT STATE THE TRUTH!!! I for one am very tired of reading articles about how these are subprime cardholders…..They are in fact the best cardholders out there along with high credit scores!! THAT IS NOT WHAT CHASE WANTS…….THEY ARE NOT PROFITABLE!!!!
Posted by marge11
on July 10, 2009 at 11:36 PM
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