Chase’s Reversal of Credit Card Fee Proves that Consumers Aren’t Powerless

Posted On: April 28, 2009

By Joe Taylor Jr., CardRatings.com Reporter

In the wake of last week’s meeting of credit card executives with the Obama administration and pending credit card legislation, I think we should point out the most encouraging recent example I know of that proves that we as consumers can make a change in this industry without relying on government intervention.

Responding to consumer feedback (and certainly pressure from the media and consumer advocates), officials at JPMorgan Chase reversed a controversial service policy affecting approximately 500,000 Chase credit card customers. On top of assessing a $10 monthly credit card fee, Chase raised minimum payments for some long-term clients.

Chase spokesperson Stephanie Jackson told reporters that the policy change was intended to encourage faster repayment on a small percentage of accounts. “In November, we notified less than one-half of one percent of our customers of two changes to their accounts effective in January,” said Jackson. “We added a monthly service charge of $10 to these accounts and increased the monthly minimum payment from 2% to 5%.” Jackson added that any related credit card fees charged before this policy reversal would be credited to cardholders’ accounts.

CardRatings.com founder Curtis Arnold notes that the move signals a major victory for affected Chase credit card customers. “I am encouraged that Chase has made the decision to eliminate this fee,” said Arnold. “I was personally affected and was not very happy about the fee, to say the least. This is a great example of what can happen if we as consumers band together and express our views. We can make a difference!”

My point is that we don’t have to just rely on the government to save us from the card industry. Certainly, some regulation of the industry is needed and welcomed. But, please don’t forget that we as consumers do still have power. Incredible things happen when we work together and let our voices be heard. Power to the people!

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