Chase Raises Minimum Monthly Payments
Credit card companies have been putting the screws to consumers all year long, but no action to date strikes me as more atrocious than Chase’s recent increase in minimum monthly payments on certain consumers. Industry-wide, the average minimum monthly payment due ranges from about 1.5% to 2%. However, Chase has raised the credit card payments for some consumers to 5% of their outstanding balance.
Just how serious is this move? Let’s say a person owes $8,000 on a chase credit card. At the previous 2% payment rate, that person would be paying about $160 a month. When the minimum monthly payment is bumped to 5%, that person’s monthly expense increases to $400!
With many of us barely scraping by, there is little room in our budgets for extra spending. And for those struggling with job losses or skyrocketing adjustable rate mortgages, a 150% increase in their monthly credit card payment can be the straw that breaks the camel’s back.
Unfortunately, consumers are left with few options to fight back. Many credit card companies have made it tougher to get new credit cards to transfer balances to. And if a person falls behind on credit card payments, their rates on a Chase credit card could increase to nearly 30%, the current default rate.
Despite the obvious difficulties this situation poses for those affected, the only real options are to either pay your credit card in full or seek out a 0% balance transfer credit card from another company. The worst thing a person can do is fall behind on payments. This will not only cause interest rates to skyrocket, but it will also severely damage credit scores.
This move by Chase is shameful and counterproductive. Hopefully, it costs them business in the long run to make up for the pain it is causing consumers in the short term.
January 1st, 2009 at 8:13 pm
I have been working very hard throughout the month of December (when I received my change in terms notice from Chase, with the new 5% minimum payment terms). I have also written a letter to the new CEO of Chase Card Services, Gordon Smith, to communicate the degree to which I detest Chase’s unfair and unethical acts. Those who are interested can see the entire letter on my site, ChangeinTerms.com (see the “About” page). Finally, thank you to the author of the post on this site, for making sure that people know that what Chase is doing is indeed, “shameful and counterproductive.” I have added a link to your post to my “Rant-roll” list!
January 8th, 2009 at 10:51 am
My sentiments exactly. Chase deserves to be publicly humiliated for what they are doing to consumers. Carter Franke, Chief Marketing Officer of Chase Bank, USA testify before the U.S. Senate Committee on Banking has the unmitigated gall to say that Chase is providing ways to help consumers meet their credit card obligations and then to do this is absolutely beyond belief.
I have been a customer of Chase for decades. I have had several loans from them on my credit card. I have never been late or missed a payment. I am told by their Customer Service Representative that they value my business. Then tell me why my payment increased from $416.00 in December, 2008 to $1,025.00 in January, 2009 PLUS they have added a $10.00 per month account fee. WHAT?
Apparently the 25 BILLION dollar bail-out of taxpayer money isn’t enough – they have to screw-over their best customers.
Chase will not back down on this – the only alternative is a blackmail offer to agree to an increase in interest from 3.99% for the life of the loan to 7.99% – then they will return the payments due to 2% of the outstanding balance and remove the $10/month fee. I have called twice and twice been promised that a supervisor will call me back. Have yet to hear from anyone at Chase.
They have guaranteed that when my card is paid off, they will never receive another cent of my or my family’s money again. Nice work Chase – tick off a 25 year customer. Good job.
January 8th, 2009 at 5:05 pm
I really sympathize with both of you. Its truly amazing how short-sighted and obnoxious the behavior of Chase and other banks has been. In my humble opinion, the banks are doing everything they can to squeeze extra pennies from their customers so they can make themselves look better to Wall Street. In the past, there were a lot more banks and it was a lot easier to just take your business elsewhere. But with all the consolidation going on, there is less competition, and thus less reason for them to fairly treat their customers.
I applaud you Robert for taking a stand against the unfair practices that seem to be standard at Chase. I would be taking an even stronger stance myself, but I don’t want another letter from the lawyers, if you know what I mean.
And Peggy, perhaps you can try to move your loan elsewhere. I don’t know the amount you have with them, but the options they have given you are absurd – no one should have to choose between getting their payment doubled or their interest rate doubled. Especially by people who are loaning us our money!
January 8th, 2009 at 6:15 pm
[...] my attention is the raising of minimum payments. A visitor to this blog posted about a disgusting credit card practice being used by Chase. Essentially, they gave her two options: pay twice as much every month or [...]
January 13th, 2009 at 12:28 pm
[...] having a Chase credit card is not all that its cut out to be. A recent post on Chase credit card practices drew more than a few negative comments. Perhaps its best to not have something Chase in your [...]
January 17th, 2009 at 11:53 pm
I as well am being raked over the coals by Chase. I too pay actually early and over the minimum payment but my 4.99% rate is surely not enough for them. I did file a complain with the Federal Reserve. I figure nothing will be done, however if more people complain maybe something will be done with this blackmail. I transferred my balance and told them what they could do with their card!
January 19th, 2009 at 9:27 am
Cyn,
You’re lucky you were able to do a balance transfer. A lot of people are having a hard time getting approved right now.
I applaud your actions. The only way the banks will change is if good consumers who pay on time (and more than the maximum) take their accounts to a different company. Plus, I hope you got a good 0% APR deal. Not only will you have taken business from a company that mistreated you, but you’ll also save yourself some money.
Lastly, and unfortunately, I bet the Federal Reserve, FTC, and every other regulator are deluged with complaints. While I doubt they’ll get to specific complaints any time soon, the sheer volume may draw their attention.
January 22nd, 2009 at 10:59 pm
THis morning I too discovered my monthly minimum payment had doubled and called to ask what was going on and what were the alternatives. The Rep. said if I cancelled my card my minimum payment would go back to what it previously was and I could continue to pay off my balance. So that was a no brainer. Chase can kiss my responsible ass good by for good. People are going to be forced into bankruptcy and Chase will taste the bitter sting of revenge…of course the gov. will probably be there with a bailout of some sort…The domino effect has only just begun….
January 23rd, 2009 at 8:28 am
Judi,
These seems to be a common tactic of both Chase and Bank of America. They take a customer who pays on time and they whallop them with an ultimatum. If you can, try transferring the balance to another company that offers a 0% APR. This way you can stop Chase from getting more of your money.
January 24th, 2009 at 5:44 pm
I agree that Chase and Bank of America seem to be the worst at honoring the original offers.
Last year Bank of America “changed” my card number without notifying me through the mail. I always use auto payment options through the websites so my payment went to my “old” account number. They tried to raise my interest rate and cancel my promo rate because it was not credited on time. After several phone calls they finally gave my promo rate back but still charged me the higher rate for the first month of the account number change. Now I know to watch this account carefully for any term changes the would allow them to revoke my promo rate. This seems to be their favorite tactic.
I thought that was the worst business tactic I had ever seen until Chase raised their minimums to 5%. It’s not like the credit lines are averaging $1000 these days. There are families and businesses that don’t have those increases available in cash. The extra $10 charge every month to have the account is just rubbing salt into the wounds. I will never do business with them ever again. The entire management team should be embarrased for their actions. But then again if enough people default I am sure they can just ask for a bigger check from the bailout fund. Maybe that is the motivation.
I will in turn support my local credit union instead.
January 26th, 2009 at 8:57 am
Shane,
It amazes me how absurd these big banks are behaving. A person shouldn’t have to worry if their credit card is going to change every time they make a payment. That’s just absurd.
And 5% minimum payments. That’s downright unfair. For a lot of people, that could be the difference between paying their bill back over time or just quitting and deciding not to pay. The decision makers at a lot of these banks are just not thinking about the big picture.
Hopefully, more people like you will bring their business to little banks that might actually care about having you as a customer.
February 3rd, 2009 at 4:50 pm
http://www.gslawny.com/lawyer-attorney-1383679.html
In January 2009, Giskan Solotaroff Anderson & Stewart filed a class action lawsuit against JP Morgan Chase & Co. and Chase Manhattan Bank USA, N.A. (collectively, “Chase”), on behalf of a class of customers who have been charged a monthly service fee on balance transfers to their Chase credit cards that have low fixed APRs for the life of the loan.
In Chase’s original agreement, Chase represented to its customers that to keep the low interest rates, the customers must only make timely required payments to Chase and the customers’ creditors. As set forth in the complaint, lead Plaintiffs allege, on behalf of a class of similarly-situated customers, that Chase imposes, in violation of Federal and State law, a $10 monthly service charge and an increased minimum monthly payment on customers who wish to maintain the promised low fixed APR.
To obtain more information about the lawsuit, please use the form below.
Note that Giskan Solotaroff Anderson & Stewart will handle all received information as strictly confidential.
February 23rd, 2009 at 1:16 am
Judy thanks for your info. I have been a good customer for 12 years never a late payment. had a 3.99 fixed for life card and tried to close my account to lower the payment and was told it was only on SOME CLASS OF CARDS. Which of course I didnt have. They refused to do anything for me and told me to call the customer assistance team.
February 23rd, 2009 at 9:11 am
Terry,
I hope you still have the 3.99% rate. Did they take that away?
April 1st, 2009 at 6:28 pm
Chase appears to have only made this change for customers on 2.99% – 4.99% rate that is guaranteed for the life of the debt. Over the past year Chase has repeatedly raised the rate on my account with the offer to allow me to decline under the terms and conditions of the card, which states that if you decline you have 30 days to pay off the balance as you have canceled your card.
Be cautious of offers that allow you to decline the 5% rate by canceling the card as the next bill will be for the full balance.
This is the worst case of sour grapes by a lending institution that I have seen, they made the deal with the hope people would continue to use the card and load charges on the back end at a high rate. Those who knew the game are now being targeted by Chase who appears to do all they can to get rid of the deal they made.
What it has cost them in my case is all retirement, HSA, savings and checking accounts are in the process of moving away from them. When they ask why, I explain that if I can’t trust Chase to keep their word on my credit card I surely can’t trust them with any other account.
June 22nd, 2009 at 5:02 pm
I too just recieved notice today. I was given no options from Chase. I even asked about cancelling the card which I would be very happy with at this point and was told I did not have the option. My bill is now going to be $480 a month. I have talked to 2 representatives today and mailed a letter. I hope someone gets results. I too hope that Chase pays for what they have done to the American public. I now have 1 month to figure out how to find $230 more a month to pay my August bill. Oh, to make matters worse, I was given a number for a credit company that “works” with Chase. What a joke.
June 25th, 2009 at 8:23 pm
I got the 5% ltr in the mail as well, payments went from 250 to nearl 700. I called several times and last time stayed on hold about 1 1/2 hours, transferred 3 times, but finally got someone on the other line who did work out terms for us that we could afford. In the end though, what they did is beyond belief. I hope they stick by these new terms. If it has happened to you insist on being transferred to someone who can help. Try calling the spanish # on the back of he card, I did it by mistake but had better luck with that number than the American number. Not sure why. They answered in spanish, could speak english and transferred me. I was transferred two more times and then got the person who helped. Best of luck to all who have been victimes of these deceptive lending practices. How they can get by with this is beyond understanding.
June 26th, 2009 at 5:53 am
Shame on Chase! Due to the increase in minimum payment on my credit card my monthly payment will go from $379.00 to $948.62 per month. Like many others, I have always paid my bill on time and paid the minimum or more than the minimum amount due.
I have filed a complaint with the Federal Reserve, consumer complaint division. Furthermore, I have written a complaint to the Obama administration and will be contacting both Senetor Dodd and Barney Frank. I urge others to do so as well.
Obviously, Chase does not care about fair and ethical practices, as a group, unsatisfied customers need to devise a plan that will cost Chase business and money.
One way to cost Chase money is to spend time talking to those in the corporation that make a higher salary. For every minute a customer takes to complain to someone making $100,000+, it cost the company more money than if that complaint is spent on a customer service representative making much less. As customers, we need to think of ways to cost the company money. Hit them where it matters. Ultimately, the company wants its customers to pay off these low interest rate balances because Chase can now charge higher interest rates on the monies they loan. Try not to transfer to other credit cards. Tie up Chases money (at these lower interest rates) as long as possible. Urge families, friends and co-workers not to do business with Chase.
June 26th, 2009 at 4:16 pm
I to have a Chase card and have always made my payments on time and usually paid at least $100 over the minimum every month. Now my payment is going from $290.00 to $725.00 a month. My rate is locked at 3.99% so I’m sure that is why that are doing this, what a bunch of jerks. I’m writing a letter to them and I will never do business with them again.
June 27th, 2009 at 7:33 am
I got my notice on Thursday June 25th. I was deeply disturbed by this and could not sleep that night. More out of principle because my minimum will go from around 70 a month to 170, so it does not kill me. However, the fact that they are allowed to do this is apalling. What was Obama’s credit reform act supposed to do for us anyway? This is ridiculous and I think I may write a letter to someone (any suggestions) for whatever good it may do.
I am glad I am not the only one this hapened to. Just hope to be able to pay these jerks at Chase off by Feb. 2010. Also praying that other cards don’t follow suit or then I will be really screwed!
June 27th, 2009 at 6:24 pm
I just got my notice today. My bill will go up from 370 to 925 a month. A customer service representative said this was to help me to get out of debt faster. What a bunch of bull. They know what they are doing. I will find a way to pay this off and I will never do business with Chase again. What a ripoff. They were the ones wanting us to use their credit and now they want to make us miss a payment and bump the rates up to the highest level they can. They are not a company that should be allowed to do this. They do not care about their customers.
June 28th, 2009 at 10:09 pm
I just read my Chase notice,which i normally don’t. Thank God I did. It said my minimum payment was increasing in August. My payment will go up $600. I called and told them why would they do this when I’m such a good customer. I just received an increase in my credit and they just said I could skip a payment for my good payment history and now they do this. The supervisor said that it had nothing to do with being a good customer it was due to the economy and they had to make adjustments. I said would they rather not get any payment because that is what is going to happen. He said there was noway of opting out of this. I told him this is so unethical and I will ge calling and wrighting everyone I can about this.I can’t pay this I have to eat and have a roof over my head . They should be so ashamed.
June 29th, 2009 at 12:28 pm
We got a letter the end of last week notifying us that our minuimum payment on our chase card would increase 2.5 times what it was. We consolidated some other bills 4 years ago with a 4% interest rate. We had 3 years left to pay it off. We called Chase to try to work it out but met a brick wall. The manager that we spoke with said that even the ceo of chase would have to make 5% minimum payments per month. (like he would need a credit card) They said they were doing this in an effort to increase their profitability.
Needless to say we will be switching to another bank for our credit card and mortgage needs. I surely hope that Chase goes out of business and that the individuals involved with the descision to screw their long time customers lose their jobs as well. This practice of torqing people for extra monthly payments and changing agreements mid stream is right up there with loan sharking. I can’t say enough about how dispicable this action is.
June 29th, 2009 at 2:30 pm
We also have received notice from Chase on increasing the minimum monthly payment on our account from 2% to 5%. I have written to both Chase and the U.S. Comptroller of the Currency on how UNAMERICAN this action is during these difficult encomomic times. This action alone can and will cause thousands of hard working americans to file for bankruptcy.
I have always made payments on time – never late – and have always paid more than the 2% required monthly payment. Well now all they will receive is the minimum and when this account is paid I will never do business with Chase again.
June 29th, 2009 at 3:34 pm
Like many others, a week ago I got the rude surprise that Chase was raising the payment on my two cards from 2% to 5% of the balance. I had earlier transferred high interest cards to these life-of-the-loan 4.99% offers. I always paid on time–in fact, electronically a week prior to the due date to be sure I retained the excellent rate. I also paid above the minimums. With the new requirements, however, my total payments would now go from roughly $500 per month to $1250! An arbitrary increase of $750 per month was simply not an option for me.
I called and requested to opt out, close the cards, and keep the existing terms. I was told this was not possible but that I was welcome to pay off the cards in full or accept the new payment terms. Since I pointed out I didn’t have the nearly $25,000 required to do so and would have to fall into default on the cards if the new monthly terms took effect, I got transferred to another person.
This second customer service rep suggested I transfer the balances to a low interest card with another bank. I informed her that this was simply not an option for me, as I didn’t have the credit available. When I once again mentioned the inevitability of defaulting if the new payment terms took effect, she transferred me to yet another person, who took down details of my monthly income and expenses.
I was then offered to have the accounts closed and have a 5-year payout on the balance at 15.99% interest–more than triple the current rate. I was so shell-shocked that I met this with stunned silence, after which she offered me a 5-year 12% deal. Supposedly it’s fixed and can never change. Then again, it seems I’ve heard that before. But I wound up taking them up on this rate the next day, though I was required to make an immediate payment on each card to initiate the new payment schedule, despite the fact that I’d just had my normal payments on both cards credited to my accounts two days earlier.
Needless to say, I will never, ever do business with Chase again. I intend to pay off both cards in under 4 years–sooner if possible, as I will pay above the monthly required payments like I usually do. But once that happens, I will never give them another penny. I love the fact that they say people like me are not paying down quick enough, but they are more than happy to raise the rate and thereby prolong the debt payoff. Chase’s actions–especially after receiving the bailout money–are simply deplorable.
June 29th, 2009 at 3:47 pm
Recent posting about a vistor who successfully got his monthly payment reduced.
June 30th, 2009 at 12:35 am
Too bad every cardholder couldn’t rally together and skip about 3mos payments. That would probably put them down like the dogs they are. Uncle Sammy and company give these people every dollar they can let 2 of the big 3 sink, and then let them pork us. No wonder why our country is in financial ruin.
The gov. should’ve paid everybody’s debt off with the CC companys. Then let everybody start over. I sure as heck could use some bailout dough. I was good till Chase told me I had 2 weeks to prepare for my over double payments.
The bad thing is we are paying for those who aren’t paying. Now more won’t be paying. The people hurting the worst from this Country’s financial disaster is us middle class, hard working, blue collars.
Hey Obama, thanks for nothing. I’m in Michigan, this state is worse than ever. But please go ahead give Wall Street everything they need. Then they can pick our pockets after you fill theirs.
Screw Chase, everybody should quit making payments that way they have to sell the loan for cents to the dollar (about half) to a colllection agency. In which will take the collection agency about a year to summon you to court. Then they will settle for half of what you owe. In the mean time save that money you would be paying them then pay it off and there you go. Done and Chase only hurt themselves.
See if you have a 20,000 loan half is 10,000. 18months it will probably take to catch up with you 18×555.55 a month is 10,000.
June 30th, 2009 at 10:01 pm
I am in the same situation and in addition to submitting a formal complaint to the OCC, I also sent a letter to President Obama the White House web site.
I also submitted a letter to the local Fox TV station in Austin (Fox 7) for their consumer protection segment called 7 on Your Side. I was interviewed on camera today at home and the segment will air on July 8 on the 9 PM news in Austin (channel 7). If you can, get your local media involved!
Daniel
July 2nd, 2009 at 10:48 am
I have had the exact same experience. I received my increase notice last week – 2% up to 5% on my August 2009 bill. I am also an excellent customer: always on time, paying above the minimum, etc. I spoke with “Pat” (male) at Chase last night. His attitude was bemused because, I suppose, they do not think they can be touched. I was told that everyone who had they foresight to lock in low transfer balances (mine are at 3.99 % and 6.99%) have received notices that their minimum payment has been increased to 5%. After all, he said, how will Chase get back their money? I believe that Chase has our bailout money but that does not seem to matter. Why is this not usuary, unfair bargaining practices and last, but not least, breach of contract? Is there anyway for us to raise a collective voice that may be louder?
July 4th, 2009 at 1:57 pm
I received my notice last week also. Minimum payment 5% beginning in August on my fixed rate interest loan. I have kept my agreement with Chase by making all payments on time and paying whatever additional I can each month over the minimum payment. Unfortunately, I cannot pay 5% of the outstanding balance at this time. Chase offered me other options, though, like increasing my interest rate to 8%….or closing the account. If we had the foresight to lock in low transfer balances, why didn’t Chase have the foresight to know that they wouldn’t be making money on these accounts? Perhaps they had planned this bait and switch all along.
July 6th, 2009 at 12:29 am
Well, after reading the above posts, I now understand what happened. I too had a 4.9% interest rate for the life of the loan, etc. My payment is going from $289 to $710 a month. I went through shock, tears, etc. I contemplated bankruptcy, and just panicked. I had always paid early, and paid more than the minimum – usually $500 a month. I was never late, and never missed a payment. I was met with brutal indifference when I attempted to call regarding the sudden increase to 5% of the minimum. She speeled off something that I presumed was written on a card, and when I continued to try to find the reason for the increase she proceeded to repeat the same words! She told me I could not opt out; that bankruptcy might have to be an otpion; and, last but not least, there was absolutely nothing she could do for me. It was written in stone. I hung up. As far as she was concerned (from the tone of her voice), my very existence was annoying her. I know I owe the money, but why the punishment for responsibly paying it back.? Their attitude brings out a response that I didn’t think I was capable of feeling. Sheer rage!! The only consolation is that I am not alone. My heart goes out to all of you.
July 6th, 2009 at 8:33 am
Kelli,
It was truly saddening to hear your story. Some posters have been able to get payment reductions in exchange for higher interest rates, so perhaps calling back and talking with a different representative or supervisor might help.
It really is a shame that people like you are being pushed to the brink after having done ABSOLUTELY NOTHING WRONG. This situation is incomprehensible.
I wish you all the best and hope you can find some reasonable solution.
July 6th, 2009 at 1:29 pm
I also got my INCREASE notice in late June. After reading all these posts I’m still not clear on one point….if you close your account will your current promotional rate stay in effect OR will you immediately owe your entire account balance. Since I initially only used the account to have a low rate for a low interest loan, I’ve since lost my job and a 2.5x increase in payment is not possible.
July 6th, 2009 at 7:54 pm
Jon,
If you read post #25, you will see that it is possible to NOT have the minimum increased, but it WILL REQUIRE that you set aside your low interest rate and accept anywhere from a 12 to 15% interest rate. Be aware that interest rate is not guaranteed to last for the life of your payoff. They can still come back a few months down the road and indicate that they require the 5% of balance payments, which means that you are holding a larger debt because of the high interest rate you’ve accepted. All their offer will ultimately do is leave you even more vunerable for a larger payment! Be VERY careful when accepting any “settlement” with the likes of this bank.
July 6th, 2009 at 8:41 pm
Same here. My 80 year old mother with a Chase card was told the same thing all of you were. Pay it or pit off. She can do neither. Thanks to those of you who posted options for her to try. The government should obviously step in. They have stepped in everywhere else.
July 7th, 2009 at 9:27 am
I conducted some research and found that consumers should request to speak with the “hardship department.” People who have dealt with this channel appear to be striking repayment deals with reasonable interest rates and lower monthly minimum payments. Simply ask to be transferred to this department instead of wasting time with a do-nothing customer service rep. If the first rep you get on the phone doesn’t know of the hardship department, ask for a supervisor.
July 9th, 2009 at 11:20 am
Chase’s behavior is outrageous — I have three cards with them. I will not use Chase again when the cards are paid in full! I wondered why the minimum payment went up — on good customers! So good customers got offers of relatively low interest for the life of the loan! By increasing the minimum payment, Chase has shortened the life of the loan — something not disclosed in the original terms! Chase will ultimately not survive this!
July 11th, 2009 at 11:27 am
My heart Weeps for America ! I first came to the US on vacation in 82. Fell in love with the country and the people. When offered a fantastic job in 86 packed up as came across the pond. Leaving Socialist Europe behind.Ended up marrying a yankee and should have lived happily ever. I bought into the American Dream, worked hard,an lived it with millions of others unaware of the greed and deception thriving below the serface. Proving to the Islamic nations the corruption they condemed us for was real. The Bottom line is that doing all the right things and paying your debts on time will be your downfall. I understand over 1 million people recieved the chase increases including me. We were the smart negociators that had the lowest rates in the country and knew how to play the game. Well, the rules changed and I have been treated with near contempt by chase. I thank you all for comments & speaking out. I am going to try the hardship department route! I love America! Stand up and save your country before its too late.
July 22nd, 2009 at 2:49 pm
Chase did it to me to, but they got me diffrently. My balance transfers at 2.99% were with Quicken card that was owned by Citi Cards. Citi cards sold the account to Chase and Chase seems to think that even though I have never used, requested, or accepted Chase ownership of the card, they can raise my payment to 5% as well, amazing how they can’t produce a copy of my agreement with Citi cards though. I also have accounts with Chase that they haven’t touched. I will do everything in my power to help bring this bank down. My company, for which I am the controller, does about $1,000,000.00 in business with Chase that I am moving to other banks. I hope Chase thinks the actions they are taking is worth it, because in thelong run, they are going to lose out.
August 14th, 2009 at 10:10 am
Call chase. Portray your financial situation as currently making ends meet (monthly mtge, rent, car payment, other credit cards against take home pay) before they raised your minimum payment increase to 5%. Request a fixed monthly payment for 5 years while agreeing to close the account (this will only slightly reduce your credit score as it closes one of your lines of open credit, but will be listed as “customer closed account” on your credit report.) I read this on another site and did today. Took me 5 minutes. This basically took my monthly paymnet back down to where it was, while reducing my interest rate by 1%. THIS ROCKS.
August 20th, 2009 at 5:41 pm
I got my increased minimum payment today. I can only cry. I am bearly managing to pay the previous minimum payment. I renegotiated the interest rate to keep the old minimum payment. Thanks to all the other card holders for their input. A note to other affected – if the customer service representative won’t help, keep trying until you find one that will. I just flatly told them I cannot pay the new minimum balance and I needed help. It was obvious that their aim was to get rid of the lower rate cards.
August 22nd, 2009 at 5:53 pm
Well I am one of those that just got nailed by Chase and I had no idea that Chase planned on or could have even done this so abruptly. My $173.00 monthly min. payment that I have always PAID ON TIME and always MORE than the min. payment required, went up to $430.00 because it was a balance transfer offer for a fixed rate of 3.99 on a 8,600.00 balance that they would like to get rid of so they can lend that money out at a higher interest to others. I will struggle to make it but I really feel for others who might have to suffer a default interest rate of 30% because they ended up missing a payment due to the fact that they can’t afford the difference in payment so abruptly. Wamu was always good it seemed, but since Chase took over, it turned into as much of a Loan Shark as any Banking Institution can get. But I am not taking this lightly. Next week I will take out all the money in my 2 Chase checking accounts leaving only $12 in each and open new accounts at another bank. I will then write myself a monthly check to my new Banks for $1.00 out of the Chase accounts as a constant reminder to Chase that I am using a different bank for my business now and still keep Chase’s administrative staff busy with my FREE checking accounts. All three of my Sons will do the same with their accounts at Chase. Then I will balance transfer my other 3 Chase credit card accounts that are lower balances with higher interests to another bank. I read where banks said they are doing this so people can get out from under their debt. BS…. My other 3 Chase card accounts with a higher interest, their minimum payments didn’t change. If anyone has any other suggestions on ways to protest these disgusting tactics of Chase to fatten their bonuses when people are desperately struggling to just survive in this economy, Please share!!!
September 3rd, 2009 at 7:43 pm
I have been a Chase customer for 20 years and I have NEVER missed a payment. I just opened my September billing statement and my payment has more than doubled!!!! GREAT CUSTOMER SERVICE CHASE………….RATHER THAN REDUCE MY PAYMENTS DURING A TIME WHEN MORE THAN EVER PEOPLE ARE DECLARING BANKRUPTCY YOU MAKE IT IMPOSSIBLE FOR ME TO MAKE THE PAYMENT. IN ALL HONESTY……I HAVE NOTHING TO LOSE IF I JUST LET MY ACCOUNT GO INTO COLLECTION. I OWN MY HOME AND CAR SO CREDIT JUST ISN’T ALL THAT IMPORTANT RIGHT NOW! I DON’T KNOW ABOUT ANYONE ELSE, BUT MY MONEY TREE DIED A LONG TIME AGO. I can only come to one conclusion…………….one of the top dogs wants a bigger bonus at the expense of all of their card holders!!!!!!!! CHASE SUCKS!!!!!!!!!!!!
September 12th, 2009 at 9:28 am
i too just got screwed by chase. a 10 year customer that never has been late infact as many of you stated I always pay extra and my payments are going from 420 to 1014 per mon. I cant afford that and I will not let my two children starve. they are flat wrong in this and need to be told. I am going to either let the balance go into collection or get the money somewhere else. I have never had a bad dpt and dont know what they can do but in this crazy world were in now it seems the poorer you are the more you get. So well I have always been prompt and never late but i am thinking of turning the tables on them. If I pay it off I think I will keep a couple of dollars on the card as that should cost them more in mailing the statement that they get in interest and I will NOT allow them to do the paperless statements that would just be a reward.
Good Luck to all
September 12th, 2009 at 11:30 am
Like Steve, my account was moved from Citi Card to Chase without my consent. I have not used the card in years and have been trying to pay it off without ever missing a payment or having a late one. Chase would, to begin with, never be my credit card of choice. My last statement raised my monthly payment from around $148/month to $370/month. I am 71-years old female, living alone on social security and a job at Wal-Mart. These people truly are the “money changers in the temple”.
September 15th, 2009 at 1:54 pm
Like many others, the minimum payment on my Chase account went from 2% to 5% in August. Payment was $358 in July and went to $950 in August, which is higher than my monthly income. Called them and was told it is non-negotiable. Called again, they asked if I was having
“financial problems”. I told them that they were the financial problem. (I was afraid to admit that I couldn’t afford the payment because they would then tell my other creditors who would then yank my credit because of their “sharing” of information) Called again and told them I could NOT pay this amount and the only option she gave was the number of a credit counseling service and said I’d be required to close my account (which lowers your credit score). Talked to the “idiot” there. He said I would have to pay a fee of $20-to $50 per month (no doubt $50) and I would be required to close ALL my credit card accounts with ALL other companies and they would “try” to negotiate with Chase for “possibly” a 6% rate. I told him my rate is already lower than that and my other credit cards should not be involved because they are not the problem. He said “Yeah but if you don’t your payment will be sky-high”…
DON’T DO THIS!! Can you imagine the impact on your credit score of having to close every account you have. Most of us are forced to have individual store cards in order to get the special offers. If closing one account (Chase) lowers your score what happens when you have to close 15 more accounts. Also you are still responsible to check every month and make sure your bill is paid on time. This “option” results in just another bill for you. In addition it takes the option of paying everyone but Chase out of your hands. This company works “closely” with Chase and may even be owned by Chase. It is for CHASE’s benefit, not yours. They already know you can’t afford the payment. They want to make sure they are paid and if they can get you into credit counseling they will get their money and your other creditors will be getting less every month from the CCS than they were getting from you. They will NOT be happy about this.
I have read where they have offered other people the option of keeping their minimum payment at 2% if they increase their interest rate to 7.99 but I was not given this option. Also some got a “deal” of a low interest rate with fixed payments for 5 years. I don’t believe they were talking to Chase. I think the “hardship” number is really that credit counseling service and that the first “payment” that they demand immediately to be deducted from your bank account is really their “fee” for managing the program. If so, watch your credit report closely because it will show “enrolled in debt management”. If this is the case you might not be able to get car or home loans if they see you are in a program. If you go the straight CCS route (ALL your accounts) it will probably say “in financial counseling” which of course makes it look like you can’t manage your bills even though you were doing fine before and had excellent credit before Chase raised the payment. Don’t believe Chase when they say nothing will appear on your credit report except that the account was closed (which is bad enough as it will immediately lower your score.
Chase seems to be on a mission to destroy the credit of all their “good” customers. Also I’m tired of reading comments by ignorant people saying its “our fault”,etc. These were LOANS at fixed rates – just like their car loans and home loans. Maybe they need to have THOSE payments raised 2 l/2 times so they can see how fun it its. If you have a mortgage or car loan don’t act so self-righteous-you are living “above your means” too. If you can’t pay cash for a house or car then I guess you don’t “need” one. Debt is debt. We used these low interest offers to finance OUR cars or other major things,these were not credit card charges. They were better offers than you could GET from a bank so we consolidated our other bills or transferred our balances as they advertised. We had no reason to expect the payment to be the same for years and then “suddenly” go up with a months notice. If Chase gets away with this, ALL other financial institutions will be able to do this!
I have no choice but bankruptcy now because of them. I was forced to give them the $950 last month but I cannot possibly make another $900+ payment to them again this month. They picked the worst possible time to do this to me because I have very little monthly income right now and thanks to them I have used up what I had left to keep my other bills current for another month. If I file bankruptcy I have a lot to lose and so do my other creditors who did nothing wrong and who helped me during a bad time after my husband died and then later when I could not work much because of physical problems I was having. I was getting by but now thanks to Chase it will be impossible.
I don’t know if this will do any good but I am also going to try to file a discrimination suit against Chase because they did NOT offer to lower my payment for any reason. They told me they would not negotiate and my only option was that ridiculous CCS whose impact on my credit score would be as bad or worse than filing bankruptcy. (Plus adding another bill on top of their 5% payment demand). I hope I can somehow make them pay off my other creditors who they have robbed because of their ridiculous, unreasonable and selfish demand.
September 16th, 2009 at 1:28 am
To Admins: In order to shorten this feel free to delete the last 2 paragraphs. I didn’t realize it was so “long”. lol
September 16th, 2009 at 11:43 am
Linda, this forum is designed to let people vent, so we’re more than happy to let you post your experience and insights.
September 16th, 2009 at 8:49 pm
Thanks a lot. I appreciate that. I made an appointment with a bankruptcy attorney for next Tuesday. I don’t want to do this and I’m still hoping for a miracle because I feel so terrible about 2 of my other creditors who don’t deserve this. I know other people are being put in this same situation so if I find out anything that people should be “warned” about (regarding bankruptcy) I’ll keep them “posted”.
September 17th, 2009 at 8:25 am
Linda, have you told Chase that you will be consulting a bankruptcy attorney. This may lead them to offer you a deal. Many people have been able to work out deals to get payments reduced. Some have actually gotten their rates reduced.
I would definitely call them, ask for a supervisor, and see if a deal can be worked out. This can save you the expense of meeting with the attorney and possibly avoid having to deal with a bankruptcy.
Lastly, I want to remark on what an honorable woman you are. Most people could care less about honoring their debts, but you clearly do. If more people were as honorable as you, our country would be in much better shape.
Best of luck and please keep us posted.
September 17th, 2009 at 5:09 pm
Thanks for the compliment but I sure don’t feel honorable at all. I feel like I am returning evil for good, breaking the heck out of the golden rule and inviting bad luck in the future if I file for bankruptcy.
From what I have read on other sites Chase has arrogantly suggested to some people that maybe they should file bankruptcy. I’m sure other people have threatened this so they think its just a bluff. If I were to tell them I was meeting with a bankruptcy attorney they would immediately sue me for the balance before the “automatic stay” kicked in after which it would be illegal for them to pursue collection. I have called them 4 times and the last time I mentioned that I did not take advantage of the skip a payment option they offered and could I do it this month. Of course the answer was no so I was forced to meet their demand and give them the money I was counting on to cover my bills for the next month. Soon it will be time to pay them again and the choice is do I pay them or a bankruptcy attorney because that is literally my last dime.
Our government and the Federal Trade Commission are equally at fault because they encourage the credit card companies to raise their payments because they say it will “help” us pay our debt down faster. Because of their bloated salaries they are completely out of touch with reality. Where is this extra money suppose to come from for these double and triple payments? This shows a complete lack of common sense.
I am now actually relieved that they did not offer me that debt liquidation deal. I just read on another blog that someones credit score went from 780 to 657 just for closing her account with Chase and enrolling in that program. And her rep told her to check her credit report in 5 months because it would be reported as “in debt liquidation program, unable to make minimum payments”or words to that effect. I will try to find it again for the exact wording but I do clearly remember the “unable to make minimum payments” because it made me so mad. Chase is once again getting the last laugh. Their real mission seems to be destroying people’s credit.
The worst option at all is the one they offered me – the credit counseling service. In addition to adding another monthly bill (they charge a monthly fee of $20 to $50, most likely $50) and require that you close all of your other credit card accounts in addition to the Chase one. I have a lot of store credit cards that I was pretty much forced to get in order to get the special deals. Your credit score goes down for EACH card you cancel. So for most of us that would decimate our credit score and make it lower than if you just filed for bankruptcy. And this is even before they add to your report “in financial counseling”. Exactly how are these agencies “helping” people?
I also read that Discover card is planning to raise their minimum payments to 4% and I have 2 accounts with them. My promo periods end in January on those accounts and because the interest will be much higher the payment will be even higher than 4%. Sears did not increase their minimum payment (yet) but they raised my interest so high on the part of my balance where the promo offer ended that it is now impossible for the balance to ever be paid off. (Of course my payment was also over $100 a month higher and is even higher on the bill I just received.)
I do NOT want to file bankruptcy. But I simply do not have the income to cover these double and triple payments. And when our interest rates are drastically raised our payments are also drastically raised. The companies who have not yet raised their minimum payment have raised their interest so high that you might as well give up on ever being able to pay anything toward your debt.
I’ll let you know what I find out from the bankruptcy attorney. At least this way people can decide if it is an option for them or would be a big mistake. Thanks for providing this website for us to “vent” on. It helps knowing that other people have the same problem and being able to read about their solutions and other info is a great help.
September 18th, 2009 at 8:52 am
I hope you can find a good solution. It looks like maybe bankruptcy may be the best option, however, you might want to consider contacting some other credit counseling firms, many of which charge little to know fee and can get your rates substantially reduced and will allow you to keep at least one, if not more cards open.
Check out http://www.nfcc.org. It lists approved credit counselors in your area that may be able to better assist you than the one suggested by Chase.
September 18th, 2009 at 9:40 am
The problem I have with credit counseling agencies is that for every account you have to close your credit score goes down. I can see not using your cards but closing your accounts will destroy your credit. In this case the sole reason would be Chase upping their payment. CCS’s are for people who can’t manage their finances not for people with a lifetime of excellent credit. Either way it is against our best interest to be forced to close all our accounts. We would have to reapply in the future with a terrible credit score. It is almost impossible to live without credit. How could you handle an emergency, car repair, home repair. This lacks foresight and common sense. If there was an agency that did NOT require you to close your accounts they would get ALL the business. Might be something to think about if someone wants to start one.
September 23rd, 2009 at 9:45 pm
Well I met with the bankruptcy attorney yesterday. Still dragging my feet. I discussed the option of just covering Chase’s ridiculous bill this month with a balance transfer offer from another credit card until I could decide what to do. Just wanted to let everybody know that you can’t do that. If you transfer $ from one creditor to another it is viewed as an “illegal preference”. If you do any balance transfers or take any cash advances within 60 (or maybe 90, not sure) days before filing bankrupty it will mess it up! You have to be very careful what you do in the 3 months precedding. So I’m kinda hoping they notice that I paid Chase $950 last month and the others much less – and that they make Chase pay it back so they can “apportion” it out more fairly. Tons of paperwork involved and its going to take me some time to find all the documentation they are asking for. This is not going to be fun at all.
Also did I mention that I called Discover card and they did confirm that they will be raising the minimum payment starting in January? So be prepared and don’t transfer to them either. Her excuse was that this will “help” us pay our debt down faster. After that I called Capital One to see what their plans were. Today I got a phone call from a rep that tried to make me think it was a “survey” about my phone call Monday but it was actually designed to get info (I think they are worried because of my phone call.)
September 23rd, 2009 at 10:02 pm
P.S. Thanks for the link. I have to have a credit counseling session prior to being able to file BK. I have to provide a certificate of completion along with my petition. I just do NOT want to do this at all. I’m still trying to figure out a way around it but I’m running out of time. I’ve kept all bills current but the “Chase” (biggest) one is due the 30th. If it was the 2% payment I could handle it but since it is 5%,I can’t. I am not going to give them the satisfaction of causing me to default so they can levy a high interest rate and start harassing me by phone numerous times per day (the lawyer said to expect that, which is one reason I don’t want to be late on any payments.) As soon as they open their arrogant mouth I want to be able to give them my case number and tell them the same thing they told me – that it is not negotiable.
September 24th, 2009 at 7:59 am
Seriously people is there no better way around this? It is a scary thought that Chase must be in so much financial trouble that they are hanging their customers out to dry like this. This ranks in the top 10 most despicable acts of this financial crisis. When the American people are hurting worst chase steps in to kick them when they are down. Driving a large portion of these card holders into default or increasing their interest rate to double; therefore, stretching out the payment process. In the end Chase decided they were going to take money from their customers and they are going to do it in one way or another. How absolutely disgusting, my question is what can we do about it as people. I believe there are enough people that find these act morally wrong that we can get changes to take place. What are the options here; petitions, letters to government, legal steps to prove misrepresentation? Let’s think collectively on this. It is the finance industry that has got us into this recession and it is the financial industry who is still trying to stick it to us while they pocket millions of bail out money from tax payer’s pockets. To those of you that have financially focused websites please make and effort to use your website to collect people who will fight against this. I will put my name down.
October 7th, 2009 at 8:12 pm
I make regular montly payments in excess of my the minimum required payment. They way they got me was that I paid on September 1 and my billing didnt cycle til the 2nd so the payment I made on the 1st showed on there system as a double payment for August with no payment for September so now I have a late fee. Called to discuss and was told they could do nothing to help even realizing that the account has had regular montly payments. Asked to speak to a supervisor and of course she was not help. Asked to speak to her supervisor and she hung up on me. Great business tactics. Even when you have customeres that pay on time and even pay extra you will find a way to screw them and make it their fault. They said just wait til you get your bill and stop paying whenever you want to. They are the ones that change their billing cycle days and so people who are responsible and have payments set up on auto pay with their bank get screwed. I was told to pay attention and pay my bills on time. Thank you so much Chase.
October 14th, 2009 at 7:57 pm
The sad part is, it has nothing to do with getting you to pay off you debt faster. It is strictly about Chase making more money. The fact that they are willing to leave the minimum payment at 2% should you opt to raise your interest rate from the promo rate, is damning evidence that it is about making more money at everyone’s expense.
December 15th, 2009 at 9:02 pm
What a way to run a business. Goodbye, Chase, forever and good riddens, freaks!
December 24th, 2009 at 1:51 pm
Chase is now on facebook, gagging me, with their “Chase gives $5 million to charity” publicity stunt. They have a “fan” page and are letting people “vote” on which charities get the money. People are so unbelievably stupid. “Fans” of Chase. And Chase states that this is only “one” of their philandrophic endeavors,etc.
This must be why they are tripling our monthly payments and raising their interest sky high, right? So they can give the money to charity. How about helping the people they have forced into bankruptcy? By the way, if you really are a “hardship” case there is nothing they will do for you. If you temporarily cannot work due to a physical condition they will not work with you in any way at all. The “hardship” plan as they call it has nothing to do with hardship, it is based on your balance which must be paid off in 5 years. You have to have a good income to “qualify” for it. If you get in a car accident or had surgery and can’t work temporarily, have cancer and are going through chemo, or lose your job,etc. the only way they will “work” with you is to tattle on you to the credit bureaus so that all your other sources of credit are closed by other companies and you can’t survive. (Thanks to universal default still being in effect because of the idiots who voted against the CC law taking effect December lst instead of February). Even if you have always been on time with all other companies (G.E. Money Bank,etc.) they will close your account because you could not meet Chase’s new demand of 5% (or the high increase in interest rates which caused your payments to be higher with other CC’s who are doing their dirty work before the new law takes effect.) If you really are in a hardship, don’t expect any help from Chase, Searscard or Discover card. (Discover card will turn you over to a collection agency after 30 days late). None of them will temporarily reduce or freeze your monthly payments for any reason. They would rather get nothing at all than take less per month temporarily. Then they whine about the “soaring default rates” and get bailouts. People don’t want to default. A loss of income can happen at any time for any reason. And if they refuse to give you time to recover or take a reduced payment for a while then they are the ones who are causing the “soaring default rates”. For me, 40 years of perfect credit have been ruined in 2 months all because their top priority was ruining my credit instead of trying to work out some way that I could avoid having to file bankruptcy against my will. Unfortunately, I don’t have the money to file BK right now either. The lawyers want $1300 upfront even though they won’t be acting immediately and nothing will happen after it is filed for quite a while. So in the meantime I am defenseless against anything the CC’s want to do. Maybe the days of credit cards are coming to an end. The high interest rates are already in place now so the best thing that could happen to these greedy companies is for everyone to stop using credit cards and let them go out of business.