Complaint Review: Chase

In the early days of credit cards, 5% minimum payments were common. Then banks realized a lower minimum payment would encourage people to run up a higher balance and also never pay it off.

The problem now is for those consumers who can only afford to pay 2%. When it is raised to 5% they will not be able to make the payment. Actually such people are already bankrupt, they just don't realize it. They think everything is fine since they can make all the minimum payments. Later they will be forced into default and become victims of the new bankruptcy law.

A better thing couldn't happen. There is something wrong with someone who can only pay 2% of the balance of their account. The bad thing is that paying 2% means you're paying maybe the interest for that month and a couple of dollars more, if that. At that rate you'll never pay the thing off. I imagine Chase and Citibank didn't do that on their own, they liked the way thing were, someone forced them to do it. Probably a concession, with the new 7 and 13 laws.

The new bankruptcy law at least does one thing for consumers. It requires higher minimum payments on credit cards.

If you're paying minimums, you'll never get out of debt.

Get that balance down to stop the interest.

If you pay only the minimum amount at 2 percent you will never pay off your balance. Some ostates are requiring this increase due to the fact that the balance doesn't lower if you make a 2 percent payment the finance charges on the unpaid will actually increase your balance.

This isn't a ripoff this is actually in your favor if you are only able to pay the minimum. At least this way you will at least lower yout balance some each month.

It used to be that banks cared about keeping their customers happy and having long-term relationships and hopefully, with the next generation as well. Unfortunately, it's now "what can we screw you out of today?", with their unfounded "rate percentage hikes" for usually unfounded reasons. They want to keep you as a customer alright...they want to keep you hostage and never get them paid off. Unfortunately with the new bankruptcy laws going into effect, they will continue to force people into desperate situations with their predatory ways, knowing full well that the people they forced into bankruptcy will have to pay some or all of it, whether they can or not.

When Chase jacked my interest 22 percentage points for NOT using my card, I told them to kiss my a*s and closed the account. Now they are sending me offers for really high credit lines and 2.90%...yeah, and when the wind blows, it will go back up. Not falling for that. I will stick with my Visa through my credit union..4.9% and no surprises.

It's rare that I would EVER side with a bank, but this is one of those times. For God's sake, if you cannot afford to pay 5% ($50 per thousand outstanding) of your outstanding balance, you clearly have no business having a credit card at all.

Furthermore, this is an idiotic post from the outset. How can it be a ripoff? By raising the minimum monthly payment from 2% to 5%, the bank is actually making LESS money. I'll leave it up to you to figure out why.