Disclaimer, while I realize this is futile, their methods lack any validity and make no sense in terms of raising money. All dollar amounts have been repalced with x's.
I sent the following e-mail today to James Dimon, CEO; Michael Cavanagh, CFO; and Jay Mandelbaum - Head of Business Development, hard copies to follow:
At this current juncture, I hold a $xx, xxx credit limit with Chase on my VISA card. I also have credit card accounts with American Express and Discover. After talking to a Chase call center representative, I have learned that Chase will be increasing my APR from its current 12.5% to 20% and that my only recourse is to write a letter to your organization.
With that, it must be mentioned that I have been a loyal card member since 2005. According to my TransUnion and Experian credit reports, I have an Excellent rating and a credit score of 780. Additionally, I have never been late on a single payment with any of my creditors for the history of my entire credit report.
When talking to the Chase representative, I was told that this APR increase would take affect because we [Chase] need to do this in order to ensure we continue to make money and can offer loans to customers., which clearly indicates that action is being taken on my account based solely on your business needs with absolutely no regard to my loyalty to your organization or my favorable credit record. At this time, I have a balance on my Chase card of approximately $xxxx.in response to the APR change and the fact that no one can seem to do anything about it, I will be pulling my balance out of the account and transferring it to one of your competitors that is happy to offer me a lower APR. After trying to reason with the Chase representative and getting nowhere, I am lead to believe two things:
1) JP Morgan Chase & Co. Has no desire to make revenue at a more reasonable consumer rate, and would rather have the absolute minimum amount; in other words, your organization would rather have 0% of something rather than any profitable percentage of something.
2) The team that designed the screening method to determine who should have their rates increased needs to be fired.
Unlike the vast majority of credit users, I have the capability to move my entire balance to my American Express or Discover Card, both of which are under a 10.25% APR, with offers to fix it for the life of the balance. As a result, you will be collecting 20% APR, on a $0.00 balance, while American Express will get 10.25% on that balance.in fact, the only revenue you will see from my account will be transaction fees on the merchant side to the whopping tune of 1%-2%.
This begs the following question. How is that even remotely going to make you more money, then simply lowering my APR to its original rate, or bringing it down to something competitive with my American Express or Discover Card? Thusly, in regards to your organization's reasoning that this increase ensures that you can offer more loans to more customers, this plan will not help you as far as my account is concerned.in fact, it has backfired.
As of June 2nd, I will be removing all money from my JP Morgan Chase & Co. VISA credit card due to lack of critical judgment on the management team and the team who screened individual clients. I will continue to keep my account open, however I will not carry a balance on it, and I will use this card to solely purchase small ticket items and monthly goods.
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