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Chase Platinum Visa ripoff raised credit card interest rate for NO valid reason forced to close account of 15 years Wilmington, Delaware
This was my first VISA card opened 15 years ago.
I have NEVER missed a payment, NEVER been late on a payment, NEVER been over my limit, ALWAYS pay more than the minimum monthly payment. Over the years my credit limit has rised to $8,500 (on this particular card) and my APR has gone down to 4.75%. (lower than a lot of my friends credit cards.)
My current balance was $1,700 LESS than my limit and I have not charged anything in about 4 months. I have been paying double the minimum to try to pay off in full as in recent years I have had to use credit to buy food and gas on a regular basis. I have NEVER paid ANY bill for ANY other creditor late. I am back on track paying for food and other stuff with regular income and paying off all my balances, none of which are at their limits.
I got notice in the mail that CHASE was raising my APR to 18.75%. I assumed this had to be a mistake. I called their 800# and connected to a nice person in INDIA of whom I could barely understand but could easily tell was reading computer scripted responses. I asked WHY my APR was being raised. 1st she accidentally had someone elses account pulled up on her screen, 2nd she didn't know why (after finding my account info.) Then she said it was because of neg. reports on my credit (this is a lie, my credit is perfect.) THEN she said it was "probably" because my revolving credit was too high (in other words the balances on my credit cards were too close to the limits in their opinion.)
I asked HOW can a customer of 15 year with a record of (read paragraph one) be treated like this? She didnt know. I spoke to a supervisor but could barely understand 1 of 5 words she said.
My choices... 1) accept the rate hike 2) close my account and pay off the balance at my 4.75%.
I chose to close it, with tears in my eyes since this was my first credit card ever that I have had for 15 years.
I also have a MC with a 6% rate with another company that I am now paranoid about doing the same thing. I have a 3rd with WAMU at 10.5% same deal. I have a best buy card with 8K credit limit at ZERO balance (0% APR for first year of purchases.) Again, read paragraph ONE for my history.
I feel they are SHAKING DOWN all their low interest rate customers for no valid reason in order to collect fees from those who pay late or what not. I DON'T understand why I am considered a BAD customer worth losing considering there are tons of people who pay late, dont pay at all, go over their limits and already show history as such. I have NEVER had a problem in the past and fear this is only the beginning.
I have read tons of stories about people paying late (with usually beyond their control intentions but late non the less) complaining of similar situations. I have never been late, over limit, maxed out etc. and am still being treated the same. So it's not just imperfections of you I now understand. It's basically everyone they are ripping off. And I have read similar stories with other CC's.
I would love a wamu person to explain WHY I am not worthy as a customer but more important I would like to say to only hold a CC as an emergency, even if you are rich, because if you dont pay off the full balance you may be screwed regardless of if you can afford it or not. and if you can't, that is about 90% of Americans.
Danielle
Hollywood, California
U.S.A.
3 Updates & Rebuttals
J
Wilmington,Delaware,
U.S.A.
Quarterly reviews pull on credit bureaus 4 times a year
#4Consumer Suggestion
Tue, November 02, 2004
Companys run a "soft" pull on credit bureaus 4 times a year of all of their clients to see what accounts are considered "Risk Accounts". This proccess is called a "Quarterly Review". When they do this they also assess levels of risk to each account.
By doing this they decide if they should
A.) Reduce the credit line to limit losses,
B.) Increase interest rate to accelerate a payoff,
C.) Close the account all together. I know you say you have never missed a payment "But" there are other indicators that can affect you negatively credit wise.
1.) Too many inquiries.
2.) Debt to income ratio.
3.) Too much available credit
4.) Too many new accounts.
There are quite a few more that they use as well depending on the company. They also should have sent an "Adverse Action letter" explainig in detail why they made that decision so that you can have the opportuntiy to dispute it with the credit bureau or understand what you need to correct on your credit for the future. Hope that helps you.
Danielle
Hollywood,California,
U.S.A.
I know about fine print
#4Author of original report
Tue, November 02, 2004
I know about fine print. I know the companies CAN change stuff whenever they want. What I don't understand is why they would change a good customers rate from 4.75% to over 18%.
J
Wilmington,Delaware,
U.S.A.
Read the fine print
#4Consumer Comment
Mon, November 01, 2004
I have worked many years in the credit card industry for numerous companys (Chase included). 9 out of 10 of these major name credit card firms have a one liner in there terms and conditions that states (in a generalized way)"terms and conditions are subject to change at companies discretion". Convieniently this is placed not at the top in plain view but buried in the fine print. So regardless of how fair or unfair you agreed to this when you signed up. I am not in support of their actions just letting you know before you get to far ahead of yourself that you may want tot research that first.