About 2 years ago my husband and I took Chase up on one of their promotional offer. We were sent convinient checks with the option to use them with a 3.9% APR for the duration of the loan, if we wouldn't default.
The decision was easy, whereelse do you get a loan with a low interest rate like that? We talked to a customer representative on the phone and had him expain the offer to us in detail including the monthly cost. The representative was even able to give us the time frame it would take us to pay the loan back, if we would pay a fixed amount (not minimum payment) each month and in time.
We paid like clockwork each and every month and were "rewarded" with increases of our credit limit. Of course we never used these increases, as this Chace credit card loan was a fixed number in our monthly budget.
In almost 2 years we were able to pay of almost half of the borrowed amount, never failing to pay more than minimum payment and in a timely manner.
Then came January first of this year, and to our shock and disdain we discovered that our minimum payment amount had more than doubled, for what we thought, no good reason. We called customer service immediately to inquire about this issue. We were told that Chase had changed their policies for the credit card in question. Not only had they doubled the percentage of the minimum payment to be paid each month, they added a $10.00 "service fee" to the account expenses.
No negotiation efforts from our side, arguing that we always had been good customers and paid in a timely manner helped. The only answer we could get out of the service rep on the phone was, that they had informed us about policy changes in November or December of the past year.
After the first anger and frustration about this, in our eyes more than doubtful business strategy, had subsided, it dawned on us. You are obviously not considered a "good customer" by this institution if you are paying your bills in time. If you are paying your bills in time, according to contract, they find other ways to shake you down. Because they are obligated by contract to guarantee the interest rate, they just sneak in through the backdoor and slap you with a "Service Fee"
We are aware that there is no legal way to go against Chase because of this issue. However, we thought people should be aware and be warned of the shady business conduct of this company.
We are very dissapointed of the fact that it obviously doesn't pay to pay!
Especially considering the fact that JP Morgan Chase is one of the receipients of the billion dollar governmain bailout. Not only do we "save" organizations like this with our taxpayer's money, we are subject to their sneaky strategies to not let their customers catch a breath!
Think about it, with the steps taken by Chase, our "Effective Annual Percentage Rate" increased from 3.99% to 6.27% and they managed to do that without breaking the contract.
Their change of policy might be legal, but morally it definitely ranges way on the bottom. But then again, who would be so stupid and believe that banks have morals? Well, obviously we were one of them!
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