Several years ago, I applied for and received a Chase MasterCard with an Adjustable Rate Interest of Prime plus 1.5%. I have never missed a payment or gone over my credit limit, which as been increased automatically by Chase several times. I currently have a balance of just over $3000, and my interest rate was 4.25% until this past billing cycle (04/09), where it doubled to 9.24%. Naturally I called to clear up the obvious mistake, but the customer service rep explained to me that I was not being singled out and I did nothing wrong. Chase simply decided to change the terms!
I responded that I did not accept the new terms because they were not the terms I had agreed to when the card was initially offered. I was told that I had no choice, since Chase had decided to make the change in November 08. The customer service rep was very calm and collected and had obviously fielded this call many times before. I asked him what would happen if I simply decided to change the terms of my agreement with Chase, and not make any more payments. Of course we all know what would happen.
How can a bank not be held to terms they had agreed to? If the prime interest rate had increased, I know the rate on my credit card balance would have increased and I would have paid it. But, because rates went down, Chase does not have to live up to their agreement, and simply changed the rules. No wonder the people are ready to revolt! I ended my conversation with Chase by stating the obvious - "You are simply driving your good customers away". I will pay off my balance and close the account. Good riddance Chase - we'll see you in the bailout line.
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