1) I applied for a Chase credit card that offered 0% interest for 1 year in Sep. 2006. Chase changed it to 23% after 3 months and I did not realize the change until 7 months after opening the card. I immediately paid it off. The only transaction on the card was one balance transfer, no purchases.
I had an indisputably excellent credit history and low debt to credit ratio. Citi and Bank of America have provided me a number of cards with 0% interest for 1 year credit line up to $22,000. I always paid it off before 1 year ended. I have not been interested in any card less than 0% 1 year term. I believe in saving and can pay off my house after 4 years of owning it. This is to say that I am not dependent on credit.
2) I applied for a card with 1-year 0% interest on both balance transfer and purchase with Chase. I was advised the application phone call was recorded. I emphasized to the person who took my application up front that if her system can't offer me a 1 year 0% interest card, I would not authorize the application. I recall she came back to me saying I am so glad for you, you are approved. I asked her repeatedly to verify it was 0% on both balance transfer and purchase for up to a year. She confirmed.
3) It was after 6-7 months, I started to see I was charged finance charges so I paid the entire principal off right away and started the dispute process. I argued all interest and penalties are invalid because I paid my only charge off within the term I agreed to.
I requested that Chase provide me the transcript/recording of the above phone call verbatim. That was the only way to prove what contract & terms I agreed to. Chase refused to provide. The truth is I did not agree to a card that is 0% for 3 months and 23% after 3 months and 29% shortly afterwards. Chase failed in its "burden of proof".
Basically, Chase provided me a card that is not what I applied for, and it was a card I declined up front. I agree with some other reports condemning usurious interest rates, secret "bait and switch", and financial terrorism committed on consumers. I have had 3 written disputes with Chase. It went nowhere and they now are harassing my cell phone 15 times a day. So I will send a Cease and Desist letter.
4) Chase stated during my disputes that "the terms of the account are subject to change based on the credit review". Fine. However, my credit history does not warrant this kind of interest hike from 0% to 23% after 3 months to 29% soon after. I ordered my 3 credit bureau reports and there was no basis in the credit reports to support Chase's interest hike.
OK. Since Chase claimed it did a credit review on me before they raised straight from 0% to 23% 3 months into me owning the card, I demanded in my dispute that Chase provide its guidelines on what credit profile will trigger an increase from 0% to 23%. What factors will trigger 0% to 5.99% to 9.99%, to 14.99%, to 16.99%, 19.99% to 21.99% respectively, etc. You get the point.
Chase remains silent and is unable to substantiate. The truth is Chase has no guidelines. It arbitrarily raises interest not only on me but many card holders who have excellent credit.
I have faithfully disputed the debt in writing. Chase interest charge is completely invalid. Chase's practice is misleading and dishonest. There is no ground to argue that the credit review warrant a credit card with this high interest to a consumer who has an indisputably flawless credit history.
However, consumers are left powerless. I plan to report Chase to Comptroller of Currency Administrator of National Banks. Have not quite found time to complete this pursuit. I am also interested in pursuing all applicable criminal and civil claims against Chase. Not quite clear on the process. For example, can I file a suit in Atlanta (my residence) against Chase credit card whose mailing address is in Wilmington, DE?
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