I have a credit card account with Chase and the terms are 5.99% interest for the life of the balance as long as payments were made on time and I never went over my credit limit. The balance was about $11,000.in November, I received two balance transfer promotions from Chase. One promotion was to transfer funds at 0% interest for 12 months then after 12 months at my regular 5.00% interest rate. The second promotion was 3.99% interest for the life of the balance.
I took advantage of both promotions and transferred significant balances to Chase and paid over $200 in transfer fees. Three months after receiving these promotions, I received a Change in Terms Notice from Chase. The company wanted to raise my rates to a variable APR. The reason provided was to "maintain profitability on my account". If I declined the change, my account would be closed. I wrote a letter declining the change and asking that my account remain open. I have excellent credit history with Chase and closing my account would negatively affect my credit.
It is absolutely unacceptable that Chase is trying to change the terms of my account shortly after using "promotions" to induce me to transfer funds to their company. How is it good business to offer a promotion then try to change the terms so Chase can "maintain profitability". I received correspondence from Chase informing me that my account is closed. This is a terrible business practice on their part. What makes this practice even worse is that the notice is sent on a flimsy folded piece of paper that many people would mistake for junk mail! This ensures that very few people will opt out because it increases the likelihood that the notice will be missed. I did some searches on the internet and found that Chase has been doing this to a large number of people.
The economy is terrible and many people cannot pay the debts that they owe. The bank's actions could cause many people who could have otherwise continued to make timely payments now default on their account. Additionally, it is incredibly unfair to take advantage of the people who are paying their bills timely by trying to get even more money out of them.
I'm so ticked off that I've written to BBB, both senators and my representative
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