Over the past two weeks, I have heard some truly disheartening stories from Chase credit card customers whose monthly payments were increased from 2% for 5% (see Chase Raises Minimum Payments for horror stories).  Today, however, two posters have left notice that it is possible to arrange a reasonable repayment plan.

According to these posters, people who have been hit with payment increases should request to speak with the aptly titled HARDSHIP DEPARTMENT.  Both posters wrote that they were able to negotiate a lower monthly payment without having to pay a significantly higher interest rate.  Here is a very helpful posting from Susanne, who successfully got her monthly payment reduced: Continue Reading »

We’ve received a number of complaints from consumers who recently learned that their monthly credit card payments have been increased from 2% to 5% – a whopping 150%.  Most of the complaints we’ve heard come from consumers with fixed for life interest rates that are in the low single digits.  And most of the people we have heard from have simply had no luck getting their monthly payments reduced.

The raising of minimum payments by Chase couldn’t have come at a worse time for those affected.  Many have seen minimum payments increase by hundreds of dollars, leaving them with mortgage sized credit card payments.  Unfortunately, these consumers are left with very few options, as many companies have made it difficult to obtain 0% balance transfers.  Additionally, many people consolidated large amounts of debt onto these low rate cards, expecting to pay them off over a long term period of time.

Given both the decline in 0% balance transfer offers and the large balances many of these Chase customers carry, there truly are very few good options available.  (And taking a second mortgage surely isn’t one of them!)

However, I located on credit card that still offers a 2.9% fixed APR for life on balance transfers offered by the Pentagon Federal Credit Union.  This seems to be the only credit card providing such deals, and may be a good option for consumers who are being pushed to the brink by Chase.  However, this card is only available to certain military or government employees.

Here’s a link to their website:  https://www.penfed.org/productsAndRates/creditcards/overview.asp

Lastly, if you have had success with this credit card or in getting your monthly minimum payment reduced, please share your experience so others can benefit.  This unfortunate decision has really put a lot of people in very tough financial positions.  Any help you can offer would surely be appreciated.

A year ago today, a very high balance transfer fee was 3% with no maximum limit.  Many companies offered no fee balance transfers while most charged a 3% balance transfer fee with a $75 maximum.  The days of low and no fee balance transfers are long gone now, and Bank of America recently raised balance transfer fees to 4%.  Chase, perhaps wanting to one up the competition, recently sent notices informing consumers that Chase balance transfer fees will be raised to 5% in August. Continue Reading »

“I just received notice from Chase Credit that they are adjusting everyone’s (Business and Consumers)interest rate by 2% regardless of credit history or balance. I love the idea that they can give out worthless loans to folks who could not afford it and then expect the customers who stayed faithful to bail them out. Chase is worthless in my humble opinion now. I am pulling out from Chase tomorrow as I am not paying their way out of the mess they created because of greed.” See comment at http://www.smartbalancetransfers.com/blog/2009/02/chasecredit-card-low-interest-rates/

Continue Reading »

Apparently, a low fixed APR for life isn’t entirely as low, fixed or long lasting as the description may lead one to believe.  Recently, Chase has been adding $10 monthly service charges to credit card accounts with low interest rates and large balances that are more than two years old.

This new fee, which is added to the higher, variable APR, is only the beginning.  More strikingly, Chase has raised the monthly minimum payment on many cardholders with low rates from 2% to 5%.  This move, much more so than the $10 fees, can mean the difference between keeping current with monthly payments and falling behind.  In fact, it is downright cruel to many creditworthy people struggling to get out of debt the honest way.

Just how dramatic this increase in monthly payments is best exemplified by a person with a $10,000 balance.  At 2%, the monthly payment on the card is a reasonable $200.  However, when that payment is bumbed to 5%, the payment balloons to $500 a month.  For many, that $300 monthly increase could be the difference between getting by and giving up.

In the short run, Chase risks pushing honest, hardworking Americans who would never consider defaulting on their payments into a corner.  In the long run, Chase risks chasing away credit worthy customers and damaging their brand.  Who would want a Chase credit card if they were aware that Chase clearly reserves the right to push customers to the brink?

In an article from smartmoney.com used a source for this article, http://www.smartmoney.com/Spending/Deals/Card-Issuers-What-Will-It-Take-to-Make-You-Go-Away/?afl=yahoo, one consumer hit by the Chase rate increase had a credit score of 800 and was only using 30% of his available credit.  He had signed up for a 3.99% fixed APR for life, looking to take advantage of a competitive rate and his account was not in arrears.  Nevertheless, Chase more than doubled this person’s repayment rate.  Perhaps their “models” showed that the customer could afford to repay them.  However, “models” are the reason we’re stuck in this credit mess.

In a footnote to the SmartMoney article, a Chase spokesman asserts that the changes affect fewer the 0.5% of its customers.  While that may be a small percentage, a large bank with Chase that has millions of customers could essentially be pulling this devious trick on tens of thousands of consumers.  Sure, it may only be 0.5%.  But the people affected aren’t percentages.  They are people trying to get through the toughest economic landscape of their lifetimes.  And instead of sending out a life raft, Chase seems to be pushing them underwater.

Note:  We’ve recieved tons of mail and posts from visitors who have had similar experiences with Chase and other companies.  We thank those who’ve shared with us and invite anyone who has had a bad credit card experience to post (or VENT) your anger and frustration here.  The more information available to consumers, the more we can help each other through this turmoil.

Recently, Chase changed the terms and conditions to many of their online credit card offers, particularly with regard to balance transfer fees.  Previously, Chase was one of the few remaining credit card issuers that still capped balance transfer fees at a set maximum.  For example, 3% per transaction with a maximum fee of $75 or $99 dollars.

However, as has been the case with Bank of America, Citi, and Capital One, Chase has lifted the maximum dollar amount on balance transfer fees to infinity.  For example, if you transfer a $5000 balance to the popular Chase Platinum Visa® Card, the cost will be $150.  Prior to this recent change, it would have been $99. 

As we’ve written recently, the credit crunch and resulting turmoil on Wall Street is having a very negative impact on the quality of credit card offers available, even to people with superb credit.  Unfortunately, things are likely to get worse.  Consequently, we continue to encourage anyone who is considering a balance transfer to do it now while decent, low fee 0% offers are still available.

April 28 2009 Update:  After a visitor posted on this site recently, I took a look at this posting from October of 2008 and really got a sense of how much the balance transfer landscape has changed, particularly in regards to fees.  Today, every major issuer is charging full 3% balance transfer fees on 0% deals and Bank of American has announced plans to raise balance transfer fees to 4% on June 1st.

While everyone enjoys being correct about a prediction, on this matter, I truly wish I was wrong.  Unfortunately, most of the dire predictions I began blogging about late last year are coming to fruition.  And, while my prediction that 0% balance transfers may soon disappear has yet to become completely true, these offers continue to be for shorter durations, regardless of the company.  So, lets all hope I’m wrong about 0% rates disappearing.