Chase Bank USA
Existing balance APR raised from 9.99% to 21.24% after missed notice

It is unconscionable to allow credit card companies to apply penalty or universal default rate hikes to existing balances on the cardholder's account at the time of the rate increase.

Chase says they mailed me a letter last October notifying me that my APR was going from 9.99% to 21.24% based on my credit report. I had until December 1st to opt out (meaning, keep the current rate, but close the account). Well, I never got the letter and this month was shocked to see the minimum payment at $316 (up from $225). $202 of that is the finance charge, up from $80 when it was at 9.99%.

Not only did the finance charges more than double, but Chase implemented the new minimum payment "rule" so my minimums went from $220 to $316.

Of course when calling they told me there was no other rate available to me. I told them that was baloney because if I had some debt counseling company contact them on my behalf, they'd reduce the rate and we wouldn't be having this conversation.

I got transferred around and ended up talking to someone who was actually sympathetic. He helped me apply over the phone for a hardship "loan", thus closing the account, reducing the APR to 6%, my payments are $228 and this debt will be paid off in five years (the same thing they offer those going through the debt counselor programs).

So for those who are in over their heads, don't take no for an answer from these people.

Keep asking questions!

Write your representatives about The Loan Shark Prevention Act (H.R. 1619) which would amend the Truth in Lending Act to cap the annual percentage rate on any extension of credit, and the amount of any fee or charge that a creditor may impose under the terms of a credit transaction. Rep. Bernard Sanders of Vermont introduced this bill on 4/13. It is now pending before the House Subcommittee on Financial Institutions and Consumer Credit.

Boycott Chase; cancel all your cards and then we'll see how much further in debt they'll get. They can't use their customers to pay off what they owe and this is exactly what they are doing.

Company: Chase Bank USA
Country: USA
State: Delaware
City: Wilmington
Site: chase.com

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