Chase Bank - JP Morgan Chase 3.99%, 4.99% life of loan is untrue Wilmington Delaware
I took advantage of Chase's 3.99% and 4.99% promotional life of the loan. When I received my recent bill I discovered that there had been a service charge ($10)added to the finance charge and that my minimum payment had increased 250%! This effectively changed the rate to 7.74%! When I took this offer it was stated it could not be changed for the life of the balance unless I was late or missed a payment! I have never been late or missed a payment! I called and spoke with a representative and his supervisor. They offered to change the rate to 7.99% and drop the minimum payment back down. I was informed that was in the credit card agreement(I couldn't find it but I don't have the agreement statement so I don't know if this is true). Not only is this deceptive but immoral. I know this is their way of increasing a locked in interest rate! I hope that Congress will take action against these crooks and their deceptive credit practices!
Michael
Charlotte, North Carolina
U.S.A.
2 Updates & Rebuttals
Theresa
Mayfield Hts,Ohio,
U.S.A.
this helped me
#3Consumer Comment
Sun, January 25, 2009
us bank 3.99% untill jan 2014! No transfer fee and if you do a transfer and have a balance the yearly 40.00 fee is waiver. I transfered to them after Chase did it to me too!
Tbc11827
Whiteland,Indiana,
U.S.A.
Why Minimum Is Increasing!
#3Consumer Suggestion
Sun, January 25, 2009
Please read the information below. Chase is not the only credit card issuer doing this as they are being required by the the federal government. I have copied information in here regarding this information. The first paragraph is from a different source than the rest of the information. The bottom line is this is a result of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and your credit card minimum payments rise. Some credit card issuers have not been complying with this and are now being forced to comply.
Under pressure from government regulators, banks are raising the minimum payments cardholders are required to make each month. The move is intended to reduce the nation's long-term debt; but in the short-term, consumers are feeling the pinch when the credit-card bill arrives.
Today, your credit card minimum payment is usually between 2% to 2.5% of the total debt on your credit card. If you were to pay the minimum payment every month today on $10,000.00 of credit card debt at 18% APR, it would take you more than 50 years, 601 payments in total, to pay off your debt, and you would pay an extra $29,000.00 in interest charges to the bank for the privilege of using their money.
By the end of March 2006, major card issuers nationwide will be increasing their minimum payments to effectively 4% of the total debt each month, which for the estimated 50 million Americans who are paying the minimum payment each month may mean that their credit card minimum payment will double. Regulators argue that by paying 4% credit card minimum payments versus 2% credit card minimum payments, you the consumer will be able to pay off your debts more quickly, if you can come up with the extra money each month! Taking the above example of $10,000.00 at 18% APR, you would be able to pay off your credit card debt with a 4% minimum payment in as little as 15 years, and you would pay less than $6,000.00 in interest fees to the bank. That's a savings of over $23,000.00 versus a 2% minimum payment.
Sounds great right? Higher credit card minimum payments can help you get out of debt faster than lower minimum payments, but there is one catch. You need to pay twice as much every month. So if your minimum payment is currently $400.00, you'll need to find another $400.00 per month just to keep up with the new minimums. Even if your bank does not increase your rates this coming month, it's only a matter of time before they are drawn into compliance with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and your credit card minimum payments rise.