- Report: #441553
Complaint Review: J P Morgan Chase; Chase Card Services - Palatine Illinois
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J P Morgan Chase; Chase Card Services
P O Box 94014 Palatine, 60094 Illinois, U.S.A.
Phone:
800-4367927
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J P Morgan ChaseJ P Morgan Chase; Chase Card Services Forced me into bankruptcy Palatine Illinois
My wife and I had 6 Chase credit cards. We had never been late, always paid, had good credit scores and low interest rates. Chase raised minimum payment amount from 2% to 5% plus $10 service charge on two of my wife's accounts in January. I spoke to customer service (In India) and asked why. She told me they had sent out a letter in November which we never received. I explained that I was disabled, that my wife had been ill and missed two weeks, we had medical bills, and my wife's company had closed down for two weeks in December for which she received no pay. In other words, we could not pay the higher minimum payment. We were told to either pay it or let them raise our interest rate. I asked if they were just targeting my wife or planned to raise the minimum rate on all of our accounts. She could not tell us. I complained to the Better Business Bureau which responded that the company was within it's rights. Chase told the BBB that they raised our rates because we were behind on our payments which was a lie. My wife and I have contacted a bankruptcy attorney. No wonder Americans are defaulting on loans when companies like this off source customer care then expect bail outs from ripped off tax payers.
Oh no mr bill
Lakewood, Colorado
U.S.A.
Oh no mr bill
Lakewood, Colorado
U.S.A.
2 Updates & Rebuttals
Flynrider
Phoeix,Arizona,
U.S.A.
Probably the minimum payment
#2Consumer Comment
Tue, April 07, 2009
It's probably not the $10 charge that affected the OP, but likely the doubling of the minimum payment (six credit cards! You're kidding). Although Chase will be reimbursing the $10 fees, I do not believe that they'll be going back to the 2% standard for the minimum payment. In the days of old, 5% was the industry standard for a minimum payment. Then some genius at one of the card companies realized that if it were lowered to 2%, their spendthrift consumers (such as yourself) would run their balances even higher, thereby generating more interest revenue. All of the other card issuers quickly followed suit. Well the days of the 2% minimum payment are going the way of home loans for the unemployed, which were fairly common a few years back. The banks didn't have to ask you when they lowered the minimum, and they're not going to consult you about raising them. It's their perogative and it's right there in the card agreement. For now, they've just raised the minimum on their lowest rate cards (i.e. interest rates below 5%). There's nothing to stop them or any other bank from raising the minimum on other cards. If you were just squeaking by and are now facing bankruptcy because the minimum went up on two out six cards, then you were probably teetering on the edge anyway. Chase did not force you to run up large balances on revolving accounts. You're getting a first hand lesson on why it is stupid to run up credit card debt (no matter what the interest rate). The terms are such that the bank has the power to change the deal at any time. Amazingly, that is what you agreed to when you opened the account.
Robert
Irvine,California,
U.S.A.
Well..
#3Consumer Comment
Tue, April 07, 2009
First the "good" news. At the end of March Chase settled with the NY Attorney General. They agreed to stop, and credit back, the $10 Service Charge to a certain set of card holders. I don't know if your card falls into this category but something to look at. http://www.consumeraffairs.com/news04/2009/03/ny_chase.html But the reality is that Chase did not "force" you into bankruptcy. If the raising of your minimum payments was enough to cause serious issues, you were already on the borderline for Bankruptcy. Sorry, but this means you had high balances, for what ever reason. Chase(and other banks) only issue the credit cards they did not force you to use them. You did not get to this point because of Chase. Now, you were not singled out. They did this to people who had perfect credit histories, as well as people that did not. They are also not the only bank changing the terms and interest rates. Although, I do believe they were the only ones who tried the "Service Charge".
