Chase CC to raise Int. Rates (credit card, loan, debt, payments)

[kelsie]

We received a notice today from Chase Credit Card Service. As of the Aug. statement the interest rate will go from 2% to 5% for the existing balance. We called Chase and they said yes they are doing this to have people pay their balances down quicker. A $4,000 balance that has a min. payment now of $80.00 will be $200 as of August. So if they are doing this all the others will follow.

[GJBenn85]

If people lived within their means, this would not be an issue. Americans, however, always think in terms of minimum monthly payments. If your figures are correct, it would take over four years to pay off a $4,000 balance (of which there are no "assets" attached) by only paying the minimum payment at the current rate, and that is assuming nothing else is purchased on the account! That is asinine and irresponsible.

[berdee]

It appears all creditors are trying out their own little programs.

Chase had recently tried out the $10 fee, which stopped after all of the suits and complaints were filed against them.

Now they are backing out of the for life balance transfer rates by raising the rates. Basically saying they are really not for life. Plus, they are not even giving the opt out option.
It may be possible that they will be hauled into court over the no opt out option, at some point.

They will probably see defaults by raising the (for life) balance transfer rates. Time will tell if the amounts that are actually paid back will offset the defaults.

The kicker is, over the past few years Chase had been working toward only offering those very low balance tranfer rates to their best customers.

Nothing like dumping on your prime customers Chase.

I'm sorry they did that to you kelsie.

[kelsie]

GB, Oh I do agree with you, but this is why so many people are in trouble right now. I understand completely why the CC companies are doing this for pp to pay down debt more quickly, but IMO I think the ones that have high balances simply will not be able to pay even the min. and will fall even deeper into debt.

[kelsie]

berdee, thank you but we are ok, I feel sorry for the people that have fixed percentages for the life of the loan and now they changed the terms, and I can only imagine people will be headed deeper into trouble and I think this is a shame.

What really makes me angry is the one thing they are all doing now, if you don't have any activity on your card for 12 mos. they close your account. This affects your credit rating. If you decide to cancel your card it also lowers your credit rating. What is up with that!

[MaxPower123]

Originally Posted by kelsie

A $4,000 balance that has a min. payment now of $80.00 will be $200 as of August.

So they are raising the minimum payment percentage, too?

[suzie02]

Originally Posted by MaxPower123

So they are raising the minimum payment percentage, too?

It sounds like the OP was talking about minimum payment percentage not of interest rates. I guess Chase is hoping to rack up fees from people who can not pay their new minimum payment.

[oz in SC]

It will be a 'shock' to the C/C companies when people simply stop paying.

In the end they have little recourse.

Funny how the companies aren't being held responsible in any way by people.

[HappyTexan]

Get a CC at a local bank or CU and move your balance over. Only the megabanks (bail out banks) seem to be doing it. They need to generate money to cover their billions of RE losses.

[wanneroo]

Originally Posted by kelsie

What really makes me angry is the one thing they are all doing now, if you don't have any activity on your card for 12 mos. they close your account. This affects your credit rating. If you decide to cancel your card it also lowers your credit rating. What is up with that!

There is a Chase card I have that I've not used for three years at all with a decent line of credit. So far they haven't closed it but I've heard it has happened to other people. Essentially I just have it for extreme emergencies like my car blowing an engine or something like that.