Thursday, August 20, 2009

Chase Bank and their changing credit card policy.

I am fuming today at Chase Bank.  Chase services a credit card that I have for over 10 years.  In 2005 I received notice that Chase was changing their APR and was offered a chance to opt out of the terms which would close my account but allow me to pay the balance back under the original terms of the agreement.  This is what I did.  I was at 5.99% interest so I figured why let it get higher.

So today I am paying my bill as I have all along and notice that the APR is now 13.74%.  I inquire with Chase and they tell me that they sent me a change of terms in January of 2009 (mind you at this point the account has already been closed) notifying me of the change.  Hmmm.  Is it standard practice to change the terms of service on an account that is closed?  When you opt of a TOS agreement and close your account which was acknowledged by them,  should you have to worry about a new TOS agreement and a rate increase?  Apparently so, at least according to Chase Bank you should.  The email exchange follows.  Perhaps it is time that consumers fight back against these bullshit practices and stick it to the credit card companies.  These types of predatory practices have to stop.  I am sick an tired of being screwed by the credit card companies!  Has this happened to you?  IF so leave a message.  I can smell a class action suit!

Dear Chalres,

I appreciate the opportunity to assist you with your
inquiry regarding the increase in the Annual Percentage
Rate (APR) on your account.

As your credit card company, we value your business. It's
important to us that we address your questions regarding
the annual percentage rate (APR) associated with your
account. Thank you for sharing your concerns with us.

We consistently review our business practices to ensure
that we provide valued services and remain competitive in
the business. As noted in your Cardmember Agreement, we
may change the terms associated with your account and will
notify you of the change in writing in accordance with
applicable law.

In reviewing our records, we found that a Change in Terms
notice was sent to you in January 2009. If you wish I can
send you a copy of the Change in Terms for your reference.
The notice advised of the effective date for the change
and explained that you could retain your then-current
terms by opting your account prior to the effective date.
When we did not hear from you prior to the effective date,
your APR was changed as noted in the notice. We regret
that we are unable to return your account to its previous
APR at this time.

While your account reflects the lowest APR currently
available to you, you may want to watch for special offers
that you may receive. These offers may reduce your
overall APR if you choose to participate. We also hope
that you will contact us periodically to see if we have a
lower APR available for your account at that later date.
In addition, you may want to call 1-877-254-6408 for
information on a home equity loan or line of credit.
These types of loans are often used to consolidate debt
and may provide you with an interest rate that is lower
than that of your credit card.

If you have any further questions, please reply using the
Secure Message Center.

Thank you,

Flossy Rodriques
E-mail Customer Service Representative


Account is owned by Chase Bank USA, N.A. and may be
serviced by its affiliates.

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Original Message Follows:


I am curious how my APR is going up March 2009 it appears
to have been raised to 13percent when I opted out of my
card agreement and closed the account so I could pay the
balance off under current terms. I HAVE NOTE RECEIVED ANY
that this was clear when I closed the account and rejected
the terms of the increase over a year ago. I am puzzled
and pissed. This is another example of credit card
companies abusing their clients to make more money. Can
you please explain how this occurred? Did the opt out and
account closure not state as the notice YOUR company sent
that the card balance would conintue to be paid under the
original terms and the existing APR which by the way was
lower that 9.9percent when I closed the account.

Please advise.

Thank you,
Chuck Ray


alessandromachi said...

You can learn more about how bad Chase Bank is behaving at the following websites and blogs. » Rate change, despite opt out said...

[...] is just determined to prove it can do whatever it wants. After getting a change in rate notice, this guy decided to opt out of the change and close his account. They changed the rate anyways on his [...]