We are the victims of what I believe are predatory lending practices by Chase Bank. This scenario is suspiciously similar to the Sub-Prime Mortgage scandal wreaking havoc across the country and costing many people their homes. Chase offered high credit limits and low interest rates "for the life of the loan". Because of this, we and many others were enticed to borrow substantial amounts of money. Now that the economy is in trouble, they have radically altered the terms in order to "maintain profitability".
These radically and arbitrarily altered terms include increased minimum payments and interest rates, shortened turn-around times, and demands for loans to be repaid within two years under threat of greatly increased interest rates (18.99-19.99%). I fear that this will force many people to default on their loans. Of course what Chase really wants is to have as many customer defaults as possible. They can then run to the government claiming they need a bailout. However, they will still demand payment from us, of course at substantially increased default interest rates (29.99%?) and exorbitant service charges. Chase will then be repaid by the government, and again by us. And with the usurious interest rates they will charge, they will receive many times the amount of the original loan.
This country is in the midst of a great economic crisis. Yet, rather than trying to help their customers weather these stormy times, Chase prefers to try to cash in. I am hoping this letter will prompt an inquiry into these outrageous business practices. We are a hard working family simply trying to keep our heads above water. The time has come for the government to step in and put a stop to these unethical, unscrupulous, and unpatriotic policies.
0 comments