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Chase Credit Card / 2% to 5% min without opt out option

United States Review updated:
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JP Morgan Chase
My wife and I personally have three credit cards with Chase Bank. On June 23, 2009, we received a change in terms for each account stating the minimum payment would be increasing from 2% to 5% of the ending balance. Over the years, we have consolidated our debt to these cards because Chase promised fixed low rates for the life of the loan and 2% monthly minimum payments. They said we had earned these terms as one of their "best" customers. We are not proud of our debt, but we had our reasons (child abuse at our daycare, our 6-year-old has Tourette's Syndrome, and I had bacterial meningitis). We made every single payment on time, in spite of the bad economy and our personal family hardships.

All 850, 000 of the customers targeted for this change in terms want to opt out of this change to the amendment to keep the terms the same and close our accounts but Chase WILL NOT LET US; this seems ILLEGAL and is definitely AMORAL. Carter Franke made a statement in front of the U.S. Senate Committee on Banking, Housing, and Urban Affairs on January 25, 2007. Franke said Chase would provide a customer with an "opt out" option when changes to terms were announced. Franke said, "this means that the customer may reject any change in terms, close their account, and pay off the balance under their existing terms." He lied.

Less than 14 months later, he provided testimony in front of the House Committee on Financial Services regarding the credit card reform bill (HR 5244). Franke said, “The bill requires a bank to follow payment terms which cost a great deal to implement – costs that will be passed on to consumers – and will virtually end competitive efforts to win business through low or zero interest offers. At Chase, our experience is that consumers appreciate these offers and take advantage of them. Many have become our long-term, valued customers…We believe that especially in times of economic uncertainty, our customers appreciate knowing that whatever financial strain they might face, we won’t add to it, as long as they remain in good standing with us.”

Carter Franke then threatened the same House Committee as follows: “We also very strongly believe the context in which HR 5244 is being put forward argues for considerable restraint on this legislation. In this uncertain economy, with credit markets already much tighter than they have been in many years, prudence would seem to dictate extreme caution with legislation that has the potential to further restrict consumers’ access to credit…there is clear indication that restricting credit cards [with this legislation] would likely have painful consequences for consumers and small businesses - and eventually for the U.S. economy."

I don't think the credit card companies should have been allowed any changes to terms after President Obama signed the credit card reform bill (HR 5244). Chase may have needed some time to get their paperwork in order but these changes to terms were definitely against the spirit of the delay in the effective date - it gave Chase time to follow through on their "painful" threats.

This recent credit card amendment to increase our minimum payments from 2% to 5% is absolutely ridiculous and needs to be reversed. These one million people cannot afford it and most of them will have to file for bankruptcy. We were already paying down our debt at a rapid pace with our low interest rate loans - we did not need "help" to pay them down any faster.


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A  6th of Jul, 2009 by 
Agree Disagree 0 Votes
I've been with Chase for over 15 years. I too received notice that the minimum payment would now be 5% of the balance which basically more than doubles my monthly payment. And I was told that if one continues to pay the monthly payment that they were paying before the increase, they would have late fees and all sorts of other fees added to their balance. So it looks like Chase would rather have people default on their payments rather than accept a payment and move on! Looks like starting Sept 1st, I'll be saving my monthly payment and defaulting on the loan! Kinda dumb on their part since credit cards are unsecured debt that will be written off in a bankruptcy filing!
A  6th of Jul, 2009 by 
Agree Disagree 0 Votes
Thank you for your comment...it's nice to hear from somebody in the same situation. I'm going to keep fighting as long as I can. I've written letters to everybody I can think of and filed complaints with the OCC and the BBB. Chase has to respond to those in writing.

I read on some blogs that if you don't pay your card, Chase can put a lien on your home and secure a judgment for a hold on your bank account (and any paychecks deposited). I've also read that Chase will not work with credit counselors. So save your money to file for bankruptcy immediately if that's your plan. Save your house and bank accounts before it's too late. Of course, it may take them awhile to get around to you since they'll be dealing with a LOT of judgments and liens! They are truly cutting off their legs with this deal. We've been the loyal customers holding them up all this time.
N  14th of Jul, 2009 by 
Agree Disagree 0 Votes
Call them - ask for a supervisor - ask for their supervisor - ask for the mnager -

I eventually got to a person who closed my account and reduced my interest to 2% .

this actually reduces my monthly payment and will pay off my card sooner.

This was my experience.

the first two people just told me that there was nothing I could do and suggested I talk to a credit counseler

Don't take no for an answer

good luck
A  30th of Jul, 2009 by 
Agree Disagree 0 Votes
Check around on the web. Chase's arbitration clauses may turn out to be illegal or unenforceable as a practical matter. Search for articles from July 2009 about the National Arbitration Forum and you'll see what I mean. So they are gonna have a hard time trying to collect these debts.

Watch out and read any papers they send you in case they figure out how to get an arbitration going.

If they can't get an arbitration going, they will have to hire lawyers and sue. Then you file an answer to the lawsuit which is a piece of paper saying you don't think you owe the money and the claim is fraudulent (I'm not a lawyer but I talked to one). Then it's up to them to prove the claim and the judge won't rule in their favor unless they prove the claim.

They can't take your house or stuff unless they prove the claim and get a judgment. They might be able to take money in your banking account if you bank with chase, so move your bank account to a completely different bank.

Good luck and keep me posted on how Chase reacts when you stop paying the bill, because I'm seriously considering just not paying them. I can't afford the 5% payments and if they don't stick to their side of the agreement, I don't see why I have to keep my side of the agreement.
N  31st of Jul, 2009 by 
Agree Disagree 0 Votes
Thank you for your advice Angela123...

I have continued to be furious with Chase because I consider their moves to be illegal and completely corrupt. When we are done with Chase, and we will eventually be done...we will NEVER, EVER, EVER use Chase for a loan again. We are young and we will never forget. We will not use Chase for a credit card, a house, a car, a checking account, or anything... We will tell all our friends Chase cannot be trusted. I hope this latest move of theirs backfires and they fall apart mid September from the backlash and the bankruptcies. They are immoral.

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