Complaint Review: Chase Card Services - Frisco Texas

Several years ago, the PBS series "Frontline" produced a remarkable documentary on the dubious practices of the credit card industry. It is truly an eye-opener. I've been in the financial services industry for 15 yrs. and even I was surprised at some of the practices that are considered legal in the industry. They also have an excellent segment that deals with the notorious credit card agreement (i.e. the fine print) and the common traps found there. The show is available for viewing online. I don't think you can post links here, so if you just google the following words you should find it : pbs frontline credit cards. The program is called The Secret History of the Credit Card.

I guess we'll just have to disagree on this point. I've been reading credit card agreements for years (at least 10) and it's always been that way. While CC companies will occasionally guarantee a particular rate for a particular time (as a teaser), their general policies have been that they would determine the rate based on their criteria, and they could adjust those rates at will with a minumum 30 day notice. Often, CC agreements made it look like you could get a stable, reliable rate by pegging the periodic rate to a figure like the prime rate or the LIBOR. The kicker has always been in the small print clauses which have generally allowed the banks to bypass these rates for a myriad of trivial reasons. In short, when you borrow via a normal consumer loan, you know exactly what you are going to pay from day one until the loan is paid off. When you borrow under CC (revolving credit) rules, you have no control over how much you will ultimately end up paying. Thanks to the Supreme Court ruling back in the late 70s, banks are allowed to charge up to the limit on the usery statutes in the states where they are based, so it's no surprise that most credit card outfits are based in states (like SD and DE) that have no usery statutes.

You are playing a game and everyone who is playing it is risking being bit. The last poster is correct on one small thing. It takes a backbone, but that is where the truth ends. It takes a backbone to say "I'm done with this game". Make no mistake the bank knows this is the same as gambling. You are stacking the cards against you. They retain all the power and you allow them to by buying into the game that this is somehow "ok". The truth is their is nothing you actually need that you can't save up your money and then pay cash. It is amazing how well in the economy we have right this minute how walking into a store with a cash deal how well people will cut a good deal with because they need that cash. For those people who think that "oh i pay my card off every month" good, then use a debit card and lose the risk they will arbitrally decide to raise your rate because your hair turned green or a stock went down and the banking institution got scared that day! The one four letter word people dance around and want to cover their eyes and play the four year old game and say "la la la la la, I can't hear you" is called RISK! No one became rich by having credit cards. They did that by saving. So yea, go to Walmart and pick up that backbone. I hear they have quite a few on sale right now. It will be the best thing you have done and on the way out the door, shread those cards and throw them away! You will lose the risk and gain the power back. Unless of course, you enjoy bailing out those banks because they mishandled your money! Personally I do not!

"Your problem is not with Chase. The problem is that you are borrowing money under a credit card agreement that basically allows the bank to set whatever terms they want to, whenever they want to. Just about all credit card agreements are exactly the same, so it's not going to get any better by switching banks. Read some of the reports here. All of the big card issuers are doing exactly the same thing. The only way to avoid this problem is to refuse to borrow money on credit card terms. Those terms stack the deck against you from the start (read the card agreement). If you can't pay something off completely at the end of the month, then either don't buy it or get a real loan with a fixed interest rate that they can't change. Borrowing on a credit card is a sucker's game. I know. I've worked for a financial institution for 15 yrs. and can't believe that people still borrow money this way." Actually, most credit card agreements over the past few years have not had a provision to change your rate whenever the heck they felt like it for any reason without giving you a chance to opt out. Advanta Banks' agreement actually do say that now effective in September. I believe your at fault over the $300 because most credit card companies charge a 3% transaction fee to transfer balances from other cards. it's nice to be able to pay cash and whatever, but credit cards have been the backbone of the American consumer and will always be a good way to charge if you can discipline yourself to pay it back without getting suckered by the interest rates. My father uses his card to pay all his expenses every month and then pays it off in 30 days and gets lots of cash back from it. Not a thing wrong with that.

The problem is that you are borrowing money under a credit card agreement that basically allows the bank to set whatever terms they want to, whenever they want to. Just about all credit card agreements are exactly the same, so it's not going to get any better by switching banks. Read some of the reports here. All of the big card issuers are doing exactly the same thing. The only way to avoid this problem is to refuse to borrow money on credit card terms. Those terms stack the deck against you from the start (read the card agreement). If you can't pay something off completely at the end of the month, then either don't buy it or get a real loan with a fixed interest rate that they can't change. Borrowing on a credit card is a sucker's game. I know. I've worked for a financial institution for 15 yrs. and can't believe that people still borrow money this way.