Comments on: Federal Reserve Reluctant to Limit Minimum Payment Increases

By: marc

marc — Mon, 18 Jan 2010 19:44:55 +0000

Same here as everyone else.
low interest LoL of $25K paid down to ~20K.
payment is obscene now.
Was informed I can’t opt out.
So I sent them a certified mail letter, to their Wilmington DE address, attention account manager.
Enclosed was a letter detailing new terms of $277/mo for 72 months, which would pay the balance off in 6 years with no interest. Enclose the first payment as a check. Cross marked the check and letter referenced to each other. Noted on both and depositing the check was acceptance of the terms. They cashed the check. Then called for more money. Every day. I talk to them at least 4 times a week, all calls sourced by them (this is harassment).
They have claimed I can’t bind them to the contract, but I beg to differ. It shows offer (letter) consideration (check), and acceptance (by account manager cashing said check).
Since my statements don’t reflect the new accepted contract terms I’ve quit paying them.

I have simply given up. My 740 FICO will be in ruins, but there is nothing else I can do (aside from murder suicide, which is simply silly).

By: Brad

Brad — Mon, 05 Oct 2009 20:05:43 +0000

Same deal for me never made a late payment in my life. Switched to Chase to buy a car on 3.99% for life. 20 year Chase customer. Now the major change that has put us in a tailspin by increasing our payment 250%. Called these thieves at Chase. Does anyone know of a website where we can unite and see these theives that change our terms after we made the deal brought to justice?

By: Chase Is Evil

Chase Is Evil — Fri, 11 Sep 2009 01:28:43 +0000

If you call customer service and the first person tells you there is absolutely no way to opt out of this minimum payment increase- the trick is to ask to speak to their supervisor who will tell you that this move is for your own good because you will get the debt paid off faster. But if you continue on and inquire as to whether Chase is attempting to drive you into default when you have never missed a payment before etc. Then she or he will reveal that low and behold there IS an option which is for you to voluntarily agree to double your interest rate from 3.99% to 7.99% for 23 months and then return to the standard rate after that- in exchange for keeping the 2% minimum payment. Of course they don’t mention that the terms of their blackmail will, of course, greatly extend the length of time you will be paying on this debt while greatly increasing their profits- but you will at least be able to keep your low payment and hopefully your credit rating. It is financial extortion by a bank that was bailed out with our tax dollars. How can the fed just sit back and let that happen? They surely can do the math on those low rate til it’s paid of deals. It doesn’t take a rocket scientist to figure out that Chase isn’t doing this for people’s own good. A large number of people in this economy can’t afford a 150% increase in almost any bill. Take a second to imagine if your mortgage payment suddenly went up 150% or even just doubled and you only had only 20 days to come up with the differance. For alot of people it is just not going to happen and they are either going to stop paying the bill entirely or have to agree to the higher rates. Chase encouraged people to transfer balances and use their purchase checks by offering these rock bottom rates and also large credit limits so many of the people they are targeting (myself included) are carrying large balances. They are not using the card for purchases but treating it like a low-rate consolidation loan. Chase knows this and apparently doesn’t like it- (even though they are the ones who invited it) -so they have set out to sabotage some of their best customers. I certainy had better not hear these bankers on CNN whining about how people are being irresponsible and not paying their credit card bills on time etc. What is the name of Chase’s CEO? Satan?

By: Linda Stewart

Linda Stewart — Sun, 06 Sep 2009 21:55:01 +0000

We can also thank those Fat Cats at the Federal Reserve for “encouraging” these minimum payment increases. Thanks to their bloated salaries they are out of touch with reality. They were so worried about the mortgage crisis(because it might effect THEM) but they have created THIS crisis by allowing and encouraging this high minimum payment crap. The people affected by this are not using their credit cards buying stuff they don’t need. These were LOANS, just like their car and home loans. I guess they need to have THEIR minimum payments triple(for their expensive cars and yaachts and vacation homes,etc.) Then maybe they won’t be so “reluctant” to stop these abusive and unethical practices. I wonder how many suicides and bankruptcies will result from their “reluctance” to protect us “little guys” from financial ruin.

By: Linda Stewart

Linda Stewart — Sun, 06 Sep 2009 21:38:09 +0000

There should be some way to edit our posts on here.I meant it gives them an IMMEDIATE customer base(not an “immediately” one…)

By: Linda Stewart

Linda Stewart — Sun, 06 Sep 2009 21:31:24 +0000

This is in response to Lynda who mentioned that possibly taking Chase up on their offer to “skip a payment” resulted in being targeted for the 5% minimum payment increase. I just wanted to let her know that if she took advantage of this, she did the RIGHT thing. I did not do it because I thought it was a trick to find out who might be having financial problems so I declined. Now I wish I had done it because then I was hit with the 5% minimum and wondered if I had made the wrong decision by NOT skipping the payment because it may have looked to them like I could afford the high increase. I had to come up with $950 (from $350)which now leaves me short for my other bills – and they offered me no 7.99 deals or hardship loan or anything else. The “hardship number” they gave me was the number of a credit counseling service who wanted me to pay them $20-50 per month and they would “try” to negotiate with Chase for “possibly even a 6% rate”. I am paying 4.99 now which means they could do nothing for me. He said “yeah but if you don’t your payment will be sky high”…In addition I would be forced to close all my OTHER credit card accounts and let them dole out my money as they see fit. This “option” only benefits Chase. It guarantees that they will still get a payment from you (at higher interest) and your other card companies who have done nothing wrong will get less than they were getting when you were paying the bills. If you don’t have the money to cover Chase’s ridiculous payment demand then obviously you are going to pay your other bills before you pay them. This will not be a possibility if they can get you into credit counseling. It protects THEIR interest and they are the one who put you in a hardship situation in the first place. CCS takes the decision out of your hands who to pay each month and how much. Also I’m sure it messes up your credit although they deny it. Your other creditors are NOT going to be happy getting a reduced payment (all because of Chase) and they can close your account or do anything they want to retailiate even though you did not want them involved in this situation in the first place. (If you go to CC it looks like you can’t handle your bills to other credit card companies.) Well,we were all handling them just fine until Chase Bank deliberately made our monthly payments unaffordable. I still wonder if this credit counseling service and debt liquidation company is owned by Chase and are new businesses they have started on the side. By creating a crisis situation for their “better” customers it gives them an immediately customer base of people who have proven that they will pay their bills on time (and will pay off the “hardship” loan.) There needs to be an investigation into this. If Chase doesn’t outright own these companies than they must have a large share in them (possibly under a different name.)

By: Alex

Alex — Tue, 01 Sep 2009 21:17:49 +0000

I too got hit with the new 5% min rates on a 3.99% for life offer I had with Chase. I transferred 19K on the account and have paid down $5K of it, and also allowed Chase to auto-deduct so I would never miss a payment. I wish there was some sort of Class Action Law suit for Breach of Contract on this. I would not mind if they started all new offers with telling you 5% payment up front instead of trying to stick you after you have already taken them up on their offer.

By: ihatechase

ihatechase — Wed, 26 Aug 2009 02:00:11 +0000

when there’s a class action, please post it on this site. I too was screwed, am now really screwed, and will need to go screw someone else to pay for this.

By: Bill Rogers

Bill Rogers — Mon, 29 Jun 2009 21:36:02 +0000

Like other posters I received the chnage in minimum payment from 2% to 5%. According to the notice, threr is no opt out provision as there would be with an interest rate increase (i.e., close the account). I have a combined rate of less than 5% of which my principal portion is five times the interest rate portion. Because this is a low interest rate loan, I have never made any purchases on this card. I have filed a compliant with the Office of the Comptroller of teh Currency, but I have little faith in the government. Here are the rationale for this change in my opinion:

Get low interest rate card holders to send in more s that the low interest rates are paid off quicker. Circumvent the new legisilation whereby any amounts over the minimum are used to pay the higher interest rate (for borrowers with multple rates on their purchases and/or balance transfers. If they raise the minimum rate, you have less opportunity to make a higher payment that can be applied to higher interest rates. Ther are also hoping that some card holders will default with the higher minim payments to raise their rates and accrue more fees. With the economy in bad shape, many borrowers are paying their minimums and hoarding cash in the event they lose their job.

If the OOC complaint does not work, I will close my account to guard against any rate increases in the future (even though my rates are “fixed”). I will take a small hit on my FICO score initially as my utilization arte will increase, but I recently refinanced my home at less than 5%, have a new car, so it will rebound quickly. I also have never paid a bill late in my life secured or unsecured and have an excellent FICO score.

We should also be careful of annual fees which may be instituted also to add revenue.

I think the new market will be credit cards that have rewards for those who pay in full each month. I also see the increase in using same as cash programs for big ticket items such as furniture rather than credit cards.

Does anyone think there could be fees for debit cards next such as annual fees?

By: Michael Williams

Michael Williams — Sun, 28 Jun 2009 02:55:38 +0000

Everyone is running a tight finincial ship these days. Our credit has been exceptional. But there are recoures. First, everyone and I mean everyone should file suit against CHASE for deceptive trade practices and violation of public trust. As we American propped up this bank with 25 BILLION. Doesn’t that give all America citizens interest in this company. Secondly the other option is this. Everyone’s credit has been affected due to their lowering your available credit and as your FICO score drops other creditors use this as a ploy to jack their interest rates up. With you credit score already affected. Do this, don’t make your payments for 3 months and then contact them to offer a payoff at 20 cents on the dollar because you are potentially going to be ruined and have may have to seek protection under Bankruptcy law. Yes this is a ploy,,,But it is the same crap they are playing on us the public. The last option which their actions will cause is actually forcing many into bankruptcy. Screw them… If you are on automatic payments. Change to a new account, Fight back, do a class action,,but that recourse only lines the pockets of big attorney firms. Individually we can all fight back, simply by standing together. I have always paid my bills,,,but I am not going to be held hostages by these bastards or the Fed reserves mentiality of letting it happen. Stand Up!