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Chase Bank Credit Card / terrible bank

1 Po Box 94014Palatine, IL, United States Review updated:
Contact information:
Phone: 800-945-2000

Chase bank may have possibly broken predatory lending laws by reneging on their agreements with probable thousands of customers like me who accepted their generous offer of low interest for the life of the balance card deals. They have decided that the life is up.

They offered their customers 3.9% life of the balance loans on credit cards years ago. Now, after paying for many years at the agreed rate they have changed the plan and added a $10 monthly 'transaction fee' when no transaction was requested nor accepted, which makes the effective APR go to 6.5% . A figure they felt they could live with. As min payment shrinks the effective APR rises under the new accounting. When the amount paid is $10 the addition of a $10 transaction fee will make the effective APR 100%/month or 1200%/year!

They also decided to change the min payment from 2% of the unpaid balance to 5% of the unpaid balance. They told me, in a phone call, that they could take off the monthly service charge if I sign a new contract and agree to 7%. Isn't that extortion- adding a charge and offering to remove it for agreeing to higher interest?

Consumer affairs web site is full of similar complaints from scores of angry customers. At least one class action suit has been filed against them.

Could they change it again and increase the service fee to $1000/month and make the minimum payment 25% of the unpaid balance? They must not be allowed to change the terms of the original agreement.

We need an injunction on them barring any changes to the original contract that was to be in place for the life of the balance until a court can decide whether or not is legal for them to breech the contract, by changing the payments and effective APR.

Ra
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Comments

  • Pa
      6th of Feb, 2009
    0 Votes

    They got me too! I've notified the BBB about it and they forwarded my complaint to Chase. Chase responded that they can do what they want but I rejected their response. What they are doing is unethical and possibly illegal. I've also notified my state's AG but haven't heard back from them yet.

  • Da
      27th of Aug, 2009
    0 Votes

    I just received my statement from Chase, and my minimum payment went from $198 a month to $497. I too consolidated my debt at 3.99% interest, thinking I was doing the right thing. I have never been late or missed a payment. When I called to complain, they stated that if I didn't make the new minimum payment then my interest rate would go up probably to 22.9%. After much talking they agreed that I could continue with the old minimum payment, but the interest would go up to 7.99%. After one year at that rate it would rise to 22.% or higher. Who is to say that they won't change the terms again and again. This is so unethical. I had a great credit score and had been a responsible consumer. A class action lawsuit is needed to stop this mess.

  • Vc
      11th of Sep, 2009
    0 Votes

    How does a company like this stay in business? People need to spread the word better of this companies unethical practices. They seem to have no concern about keeping customers happy or keeping them at all.

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