I have been making timely payments to Chase of the interest plus $500 every month on a rather large balance transfer with a 3.99% fixed APR until the balance was paid in full, with a 2% monthly minimum payment. Now Chase is planning to weasel out of its low interest rate commitment by increasing minimum payments from 2% to 5%, which more than doubles the monthly bill, making it difficult to keep up the payments.
This increased minimum payment appeared without notice on my August monthly bill. When I called to complain I was told that notification was sent previously but returned by the post office. Then Chase kindly offered to reduce the minimum back to 2% if I agreed to give up my 3.99% guaranteed rate and accept a 7.99% rate instead.
Very clever. Good customers who have been playing by the rules are apparently being sacrificed to cover Chase for its own failure to adhere to prudent lending practices, at least according to CSRs who explain that this is necessary because theyre losing money. Oh? According to the news Chase had a $2.1 billion profit last quarter, after repaying its $25 billion taxpayer bailout. And they need to pad their profits by extorting extra cash from folks who are struggling to get by. Nice.
I understand that somewhere in the midst of the fine print Chase has given itself the right to unilaterally change the rules in the middle of the game. That may make it legal, but it doesnt make it right. At the very least Chase is guilty of unethical business practices, and in many cases may be forcing its customers into bankruptcy.
I will do my best to make the increased minimum payments and think I can manage although it will be a burden, but I hope someone can help the poor folks who are being driven into default by this despicable behavior.
I've filed a complaint with the FTC and the credit card sponsor, and will be writing to the president, my senators and representative, the Federal Reserve, the BBB, my state Attorney General, the governor and anyone else I can think of.
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