- Report: #307279
Complaint Review: Chase Credit Cards - Wimington Delaware
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Chase Credit Cards
http://www.chase.com/ Wimington, Delaware, U.S.A.
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Chase Credit Cards Chase bought account changed rules changed my rate Wimington Delaware
I had previous experience with Bank One (now Chase) which upset me and I closed the credit account and got a prime for life card with Wachovia.
After a couple years, Wachovia sold my account to Bank One, but left the prime rate so I kept the account.
I had a few hundred dollars as a cash advance and several thousand as purchases. For most of the life of the card it was a prime rate card with a once a year fee of $80.
About 2 years ago I hit the maximum and kept paying off the minimum and then using the rest of the balance for expenses. I was allowed over the limit without any problems.
About a year ago I was capped at my maximum and they started charging $39 when I made charges that forced the balance over the limit.
I was always careful not to be late with payments twice in 6 months because thats when they add the default rate.
But my behavior remained the same, most months getting an over limit fee when I caused my charges to go over limit, but only if charges did that.
In January I find that some rules changed - I assume it was mailed and in the tiny type - But the following "surprises" occured:
= With an explanation basically saying - we did this because you went over the limit too much I get:
- My cash advance rate jumped to 22%
- My charges rate jumped to 12.75%
- although I did not go over the limit, the interest did so I got a never before seen fee for the interest causing me to go over the limit of $39
So my minimum payment doubles due to the new fees and interest. How is this supposed to encourage me to like them. Obviously if I am at my limit I am having some problems with cash flow - so they kick me when I am down.
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I refinanced the house and sent a payment in full to "get rid" of them.
I think these tactics are unscrupulous and for most people who do not have the option of refinancing, it upsets the financial balance for people who are barely getting by. I guess they were trying to get me to default so my rate would go over 26%.
What use is that - by forcing someone to pay more, they are essentially encouraging people to stop paying them. This can cause more defaults and write offs - how is this good business? For people like me, I refuse to do business with them again for this treatment. Predatory behavior like this will not help this company- they either get defaults or resentful customers who want to get rid of them.
As I mentioned above, I think they assumed that they had me trapped with no where to go. Very bad ethics! Shame on them for doing this.
Dave
Alpharetta, Georgia
U.S.A.
After a couple years, Wachovia sold my account to Bank One, but left the prime rate so I kept the account.
I had a few hundred dollars as a cash advance and several thousand as purchases. For most of the life of the card it was a prime rate card with a once a year fee of $80.
About 2 years ago I hit the maximum and kept paying off the minimum and then using the rest of the balance for expenses. I was allowed over the limit without any problems.
About a year ago I was capped at my maximum and they started charging $39 when I made charges that forced the balance over the limit.
I was always careful not to be late with payments twice in 6 months because thats when they add the default rate.
But my behavior remained the same, most months getting an over limit fee when I caused my charges to go over limit, but only if charges did that.
In January I find that some rules changed - I assume it was mailed and in the tiny type - But the following "surprises" occured:
= With an explanation basically saying - we did this because you went over the limit too much I get:
- My cash advance rate jumped to 22%
- My charges rate jumped to 12.75%
- although I did not go over the limit, the interest did so I got a never before seen fee for the interest causing me to go over the limit of $39
So my minimum payment doubles due to the new fees and interest. How is this supposed to encourage me to like them. Obviously if I am at my limit I am having some problems with cash flow - so they kick me when I am down.
------
I refinanced the house and sent a payment in full to "get rid" of them.
I think these tactics are unscrupulous and for most people who do not have the option of refinancing, it upsets the financial balance for people who are barely getting by. I guess they were trying to get me to default so my rate would go over 26%.
What use is that - by forcing someone to pay more, they are essentially encouraging people to stop paying them. This can cause more defaults and write offs - how is this good business? For people like me, I refuse to do business with them again for this treatment. Predatory behavior like this will not help this company- they either get defaults or resentful customers who want to get rid of them.
As I mentioned above, I think they assumed that they had me trapped with no where to go. Very bad ethics! Shame on them for doing this.
Dave
Alpharetta, Georgia
U.S.A.
2 Updates & Rebuttals
Carl
Oakland Park,Florida,
U.S.A.
Unfortunately, your experience is fairly standard in the credit card industry
#2Consumer Suggestion
Fri, February 08, 2008
Hi Dave, I read your experience with your credit card company, and , believe me, I empathize. Sometimes things happen, life gets hard, and times get "tight", so before I go any further, let me say "I feel your pain". That said, there IS a price to pay (with most Credit Card companies) when you go a certain number of times past due, go over your limit, or (if they use Universal Credit Models) if you become a credit risk and go past due with OTHER creditors. The "price", unfortunately, is a higher interest rate. As "unfair" as I think default bank rates are, they are stated in the agreements and in your amended agreements when card companies buy each other out. When you receive amended agreements, you have the option , in most cases, to "Opt Out". Opting out, essentially means, that you are saying you don't agree to the rate. However, what that often means for you is that the rate goes up anyway, you just cancel your card as a part of the "opt out" agreement. Until laws are passed to limit the default caps that Credit Cards place on past due or overlimit accounts (and I agree with you, they are too high) then consumers will have to pay higher rates on less-than-perfect accounts. It's reality, it's legal (for now) and you were warned about the rates, fine print or not. You also (according to your statements above) knew your account was over it's limit, so the bank stepping in and saying "no more" should not have really been a great surprise to you, hardship or not. Keep an eye on your "new" account. Even accounts that have a "guaranteed rate" or lower rate often have similar restrictions , and the APR WILL go up unless certain criteria are meant for the life of the account. Good luck.
Thomas
Anderson,South Carolina,
U.S.A.
Bad ethics by Chase? No, really bad strategy by you for always "going over" your credit limit.
#3Consumer Comment
Fri, February 08, 2008
You had a "good deal" (sort of) and, by your own admission, you abused it. So your admitted abuse of your "good deal" (that abuse was unethical, in my book) caused you to loose your "good deal". Where is the RipOff??? I suspect carrying a CC balance becomes a habit- a bad habit. Of course, if you could get prime on what you borrowed, and have money elsewhere earning more than prime, then you are (were) ahead of the game. But, if so, you ruined the game for yourself, by yourself. Congradulations! And yes, banks are (SURPRISE!!!) in business to make money, so they will continually look for the fattest fruit on their radar screen. When they find that fat fruit, they will squeeze it. This is not unethical, it is the bank management performing their fiduciary duty to their stockholders. Many people take out home equity loans to pay off their CC balances- then they run up new CC balances. Remember the song that had the line: "Another day older and deeper in debt."
