Chase minimum payment increase

[gringo]

Hello all! New here with hypothetical question. I read that Chase is considering raising minimum payment from 2% to 5% - which would more than double the minimum. I realize that this will not apply to everyone, but would be significant for me.
I received dozens of offers from Chase to consolidate at low rates for the life of the loan. When I retired, I took advantage and moved all of my debt to Chase on the two credit cards I had from them. The total is about 15K, and I pay the minimum plus some extra each month and have never been late. Overall credit is good.
I read the fine print as well as the large print and understand that they can do whatever they wish to do.
I would like some input on what I could do if this happens to me. I cannot handle the 5% minimum. Thanks.

[hdporter]

It's reported that Chase is indeed increasing the payment minimum for balances such as yours, apparently regretting having made "low rate for life" offers. It's also been reported that in addition to this, they're assessing a $10/mo fee on the accounts.

It's suggested that Chase is willing to keep the minimum payment calculation unchanged provided that you agree to a rate increase on the balance. To the extent that you can't arrange to do a balance transfer to another card at an attractive rate, this option may be attractive.

See more at:
http://www.visioncredit.org/chase-raise ... rvice-fee/

- Harry

[rixey]

gringo;

Chase is “NOT” implementing higher minimum payments or assessing fees to those who have “Balance Transfers for Life” on all of their customers.

I currently have a similar account and called Chase Customer Service when this information was first circulated. I was informed that certain accounts will be effective, however not all of them. The criteria they are using are considered proprietary and they would not provide any details as to who would be effective. They did inform me that they do take a look at your overall credit obligations and the amount you pay back to all creditors. They are looking for those customers that show continuous increases in overall credit obligations. Since I have paid more than the minimum payment plus the interest each month they informed me that my account was in good standing and I would not be affected by this new policy.

However, since we are experiencing such turmoil in our economy, all of this could change on a dime.

As a suggestion, if you are concerned about the possibility on changes to your existing account, call customer service and ascertain the status of your account.

[gringo]

Thanks for the replies received. Good to hear from knowledgeable folks - I feel a little better.

[NightStar]

Well just in case, I would still advice that you increase payments on your own and try to get out from under this debt as fast as you can.

[hdporter]

Thanks for catching that one, rixey.

It should have occurred to me that this wouldn't be something that they would toss out across the board ... p***ing off even their very strongest customers. It makes sense that credit profile would come into play. (But, of course, it's likely that some of those who've been subjected to this have very respectable credit scores, just not impeccable).

[rixey]

Harry;

As you are aware, Citibank did exactly that several months ago when they used computer software to record consumers spending habits. It’s my understanding that the variables used failed to take in to account their most valuable customers and started to raise interest rates, lowering credit limits and freezing/closing accounts on quite a few of their card holders.

Talk about unintended consequences, upper management never dreamed that customers would retaliate in masses, by closing and move their accounts to other financial institution. This, in itself, caused the creditor a significant decrease in their profits on merchant fees, interest and other fees, not only with credit cards but with checking and savings and other instruments on deposit. They are now feverishly working to tweak their enhanced software to minimize their losses. Fortunately, other creditors have recognized the consequences of blanket credit profiles to some degree and have scaled back their criteria as to which customers may receive adverse action on their accounts.

Some creditors will allow their customers who receive notices of changes in their terms to call and have their new terms re-evaluated. Some have been successful other have not.

In all fairness, it’s not just Chase instituting chances, all the credit industries are working on changes. I am just stunned as to the number of people that continuously make late payments, go over their limit, and cry foul when their creditor takes action against them for what they claim is for “no reason”. I personally have no problems with the creditors taking action when it’s warranted. We all must remember, it’s our responsibility to read and understand the terms of any agreement we make.

For what it’s worth, Creditors are taking a closer look at one’s debt to credit limits on all accounts individually and collectively to ascertain if your overall debt is going up or down. There have been a few Financial Managers that have suggested the use of cash or debit cards for future purchases and decrease your current debt as much as possible in these troubling financial times. These suggestions may have some merit, only time will tell considering not all credit profiles are equal.

Harry, I wish to take this opportunity to wish you and your family a very Merry Christmas and a prosperous New Year.

[atomicat]

I have made all my payments to Chase on time.

I have had extremely high credit scores and had plenty of cards with more or less debt and have a good, secure well paid job.

I received a low interest check and took $10,000 out of my Chase Credit card. Money to be used toward (whatever I wanted to use it for, it's nobody's business). The payments of course were easy to calculate at the low rate of interest. I had other debt on the card, about $5k at the time. I knew that I could handle the debt load and always pay minimum an often more than that on one of the cards I hold. I also paid $300 for that $10k loan, they didn't do me any favors in giving me that loan I was doing them a favor to borrow from them and pay a fixed interest rate. Since I had an over 780 fica score I was doing them a favor.

My payment was $298 due last December. I paid $350 which is more than the minimum amount per my usual practice.

I have about $14,400 on the card right now as the balance and my card should be able to take another $8k according to friendly balance amounts printed on the bill they send. I'm also a Chase bank customer. I'm also using their bill payment features. I also came from another bank (BOA) to be their customer.

I also had a credit report done after I took the 10K off my card in looking for a house. I still have a good credit score, but it dropped a little due to the large 10K borrow on the card. (Basically I was planning on using that $10K toward a property purchase if I found a place and deal I wanted to close on.)

Now I have had a lot more that I owed on the 6 or 8 credit cards in the past. But these were for the most part paid off. Basically this 15K represents most of what I currently owe. I have some other cards which I can pay completely off each month.

My January Chase minimum was announced in my new bill at it's $724 a month minimum with the $10 finance charge. I can "opt out by paying the complete card off" according to the terms. This takes basically a 48 month loan at the 5.5% overall mixed rate that I was paying and pushes it down to a 21 month loan at $724 a month.

It's a total scam. Their entire offer was a false offer. They are changing terms mid stream, and as such have not kept their end of the contract. This loan was pushed by Chase October of 2008. I have the check offer still and notes on it when I took out the loan. I also had several checks like this arrive every couple of months so they have been looking to hook as many as often as possible.

The change of terms letter was put out in November 2008. Who knows maybe Chase was pissed that the Democrats won the elections, I don't know why they chose to do this. Now they think that they will raise my rates due to the change in their terms which I cannot opt out of?

Let's see what kind of contract common law justification they can drum up for this. Juries should be very interested in seeing the changing terms of the contract. In a court case there is the "law", then there is "the constitution" and last there is "common law" considerations, which deals with how contracts are universally handled in an ethical manner. I'm not going to go into specifics, but juries will look at the fairness of the overall deal and ethics involved. I'd like to be tried by my peers and see if they'll side with Chase on this scam. At least third world dictators have an excuse for hyper-inflation, Chase would rather just stick a gun in your face and demand a hyper-inflationary payment just to out and out screw you over.

I think it'd get real interesting if all the cardholders who are getting ripped off with suddenly stopped paying in protest and end all financial transactions with Chase. Maybe we should because so many are being hurt. Its instant hyper-inflation with the goal of raising a promo interest rate that was a lie. To say, the fine print doesn't allow an opt out is completely silly. Your saying that a sub-$300 a month bill that people calculated and is put out there by your staff as the calculated rate will now jump to $724 a month? Lol. I'd love to see the jury reaction to that when you try to collect.

This kind of change in terms is nothing more than voiding the entire contract in my opinion, maybe I should let a court decide. I lived up to my side of the terms, Chase is walking away from their side of them. The only "change" that happened in my credit history is I took out a loan Chase asked me to take out. The freaking cash advance check they sent even has $10,000 written in it as a suggested amount.

Now the effects of doing that make me a bad credit risk? What a joke. Chase is finished as far as I'm concerned. You're done, you're cooked, you should smoke some dope or suck on another line of blow, because your not a bank anymore. Your just a bunch of crooks. I can probably walk away from this contract ethically and win a lawsuit against Chase for damages. They are doing me a great favor when I think about where this can lead.

You know this kind of scam and mass money grab will force many to lose their homes, those near the edge. The rich bankers want to not only rip away any facade of democracy in this country by threatening Depression via the tarp bailout and make the Depression worse. Now they perform financial terrorism on the citizens of the USA by forcing them into bankruptcy? It's going to be a real interesting year. Congrats to our new President Obama, Chase just sent their letter of appreciation to the votors of this country. I suppose it's obvious that this would be the next thing for bankers to do, they've all but ruined the auto industry and sat by after not loaning money to car buyers and now are seeking to reap a profit off credit card consumers through pure lies, deception and theft. So after taking taxpayer money, my future taxes, they are going to try to push their best customers into bankruptcy, what amazing pieces of work these guys are.

The consumers will continue to revolt. There will be no recovery, which is probably the plan of the elite bankers anyway, they are looking at ripping out any chance the USA has at recovery and sail away to some other location to rebuild a "new world order". I hope they can sail far, I look forward to Obama sending our CIA guys after these bankers just as we do today against other terrorists.

[gringo]

Thanks for the information. It has not happened to me yet, but if it does, I will have no problem in going bankrupt. I do not need any credit or a good credit score. I retired and live on social security with very few obligations and have no need for a new car or home loan.
My decision to retire was partially based on the fact that I could get a low interest loan and consolidate all debts. As in your case, I was bombarded with offers from Chase on a regular basis.
By "no problems" I mean ethical or moral problems. I have lived up to my part of the deal.

[hdporter]

Your cardmember agreement is explicit in stating that general terms may be changed at any time. These include the minimum payment calculation and assessment of fees (as well as the standard interest rate). Your promotional rate is secure because it is stated as applying for a fixed duration.

There's no question that the increase in minimum payment and assessment of $10 monthly fee is frustrating and sets Chase in a relatively undesirable light. That goes doubly so because after having made "life of balance" offers, they're changing basic card terms a matter of months later. However these are terms you willingly bought onto in transferring balances.

Your remedy is, of course, to again transfer to another issuer if you have more favorable terms available. To speak of anyone doing anyone else a "favor" is a little misguided. People enter into transactions because it benefits them.

[mcosta]

Everyone that's been having trouble with Chase regarding the $ 10.00 fee plus raising minimum payment 125%, there is a law firm that might be starting a class action law suit, please visit http://www.pinnaclelawgroup.com or e-mail kfrkevin@yahoo.com.
Good luck everyone!

[Mud]

A year ago I transferred some balances to a low fixed rate on my Chase card. I have a credit score of 752, have had the card for 10+ years without a single late payment and have been diligently paying $200 more than the minimum balance all along.

I got a notice from Chase today that my minimum payment will be increasing from 2% to 5%.

So, Rixy, what Chase told you was a lie. They're regretting their offers of a low fixed rate. Funny how they don't have to honor the terms they acquired the loan at-- don't you think?

I called Chase and they told me there was nothing they could do. I told them I couldn't afford to pay TRIPLE my minimum balance. Again, nothing they can do. The customer rapist actually told me it was going to help me pay down the balance that much quicker. Can you believe that?? How am I paying my balance down that much quicker when I can't make the payment? Sounds like an oxymoron to me!

Thankfully I have another option, but I will NEVER EVER do business with this company EVER again. I hope they go down like the Titanic so I can dance on their grave!!!

[Polonius]

So, Rixy, what Chase told you was a lie. They're regretting their offers of a low fixed rate. Funny how they don't have to honor the terms they acquired the loan at-- don't you think?

There's nothing in your balance transfer offer that specified the minimum payment percentage. So you're stuck.

I will NEVER EVER do business with this company EVER again. I hope they go down like the Titanic so I can dance on their grave!!!

As usual, I'll point out that attitude does you no good. Read through this board and you'll see others saying the same thing about BofA or Citibank or AmEx and other major card issuers.

My attitude is to comply with the terms I have, try to stay in the good graces of all the banks, and look for an offer that I can use and profit from. That's not defending the rapacious banks--it's just recommending an attitude that will be better for you in the long run. It doesn't pay to hold a grudge.

Just saying.,...

[GGmcr]

I am with a law firm that is investigating complaints from Chase credit cardholders who were notified that their monthly minimum payment would increase from 2-5%. Check us out at http://www.girardgibbs.com/chase.asp, or give us a call toll-free at (866) 981-4800. You can also reach me by email at mcr@girardgibbs.com.

[stripcony]

Test post reply - testing system issues 7/20/2009

[stripcony]

Test post reply - testing system issues 7/20/2009

[stripcony]

This is a test reply - testing system settings 7/20/2009

[theodorewadman]

My balance on my Chase card exceeded $44,000. Minimum payment at 2% is $875. I received the letter saying my minimum would increase to 5% (ouch!). I contacted Chase. They put me in touch with their proactive solutions department (877-890-2941). Result: interest rate lowered, payment lowered, 60 months to pay off balance. I had this card for nearly 20 years, so that may have had some influence on the easy switch. Also am more-than-full-time employed with the ongoing ability to make this payment. Tradeoff: account is closed, shows up as a voluntary closure of the account on my credit report, which is fine, as I have way too many cards right now. The lady was very helpful and said that many of the other banks have similar programs. So I'll check into those as well. I would advise anyone strained by this change to make the call.

[concerned]

I'm sooo disappointed in Chase. I've been with Chase for more than 10 years. They increased my monthly minimum payment from $250 to $860 monthly. Obviously I was SHOCKED to see such an increase. Please note that I've only been late with Chase maybe 2 times in the 10+ years. I called Chase to why this occured. They did not even want to listen to what I had to say. I was hung up on once and the second time they had no answer. Basically telling me "it is what it is, sorry".

I finally called a third time and asked for a manager. I then was asking their manager to why this happened? ******** He said "they were increasing everyones minimums due to the economy and that they need to make money some how. I told him how this was soooo unfair. In addition, I said "so basically I'm getting hit with over a $600 increase because I pay on time and picking up the pieces for those that can't". How is that fair and how do they expect me to pay this difference".

Thanks to Chase I am not paying this new payment at all since I can't afford. I really did not appreciate how there customer service dept was with a long time customer who pays on time with a .

A very dissappoined Chase Customer!!

Long Island, NY

[NightStar]

Ouch! That was brutal, ok there are a few things you can do here.

Have you pulled a copy of your credit report? Do you know what your credit score is?

If you have not purchases a credit report yet then I recommend that you do so.

Experian 888-397-3724 http://www.experian.com
Equifax 800-685-1111 http://www.equifax.com
TransUnion 800-916-8800 http://www.transunion.com

I would appreciate if you can post back here what your score looks like and when the 2 past lates occured.


1.* If the credit score is good like above 650 - 720 then apply for some cards like Citi Bank, Capital One, US Bank, National City, you can even check your phone book for banks and credit unions local to you.

* If the credit score is good like 720 - 800+ then apply for some cards like American Express, Chase, Bank of America, Discover.

** You need to appy for the news cards before the due date, and at the same time you apply if you get the card call back to find out what your available credit limit will be. Be sure to ask the customer service rep what the total fees are for the transfer. Deduct that amount form the credit limit to get the new amount available. Ask for a balance transfer and ask the customer service rep how long the transfer takes.

*** If the transfer is coming in late, I hate to say this but if you can somehow manage to come up with that amount for a one time payment. Just to cover yourself until the balance transfer goes into affect.

2. If you can't manage to get the balance transfer then call customer service back and ask for the manager again, tell him you want to opt out of the changes and close the account and pay the amount down at the previous terms.

3. If they refuse to opt out then ask them for HARDSHIP to lower the interest or the amount due for a period of time.

4. If they refuse to opt you out, contact the FTC http://www.ftc.gov and file a complaint against the credit card company.

5. If after all of this you can't get the account paid, you might consider closing the account. If you can't pay then that is all you can do about that, it can charge off after 6 months of non-payment. It can report the defaulted account for 7 years. If you stop paying, then start saving that money that would of paid the account and put it in a safe somewhere.

Before charge off, keep calling them and trying to offer a settlement agreement. If you offer full payment, ask for deletion of the tradeline listing on the credit report. If you offer a settlement for less then full balance, then ask if they will report paid or settled in full. And demand that they send you a letter by mail. Write to them, when you offer the settlements. DON'T TALK ON THE PHONE.

6. If the account goes unpaid, then I would recommend that you close your checking account and make other payment arrangements with all of your creditors that you are still paying as agreed to. Also if your employer is paying you by direct deposit, have them pay you by check. That way if the defaulted creditor sues, they can't put a garnishment against your checking account and take all of your money.

If the amount due is high, chances are high that the creditor will sue in court. If they get a judgment it can be posted to your credit report and show for 7 years from the file date. If you pay after judgment, then negotiate that the judgment be dismissed instead of released.

7. What state are you from? Check the Statute of Limtations: http://www.carreonandassociates.com/art ... tatute.htm

Ok, credit cards are open end accounts and that is the number of years the creditor has to sue you in court. If they go outside of that period and sue, then you can go to court and point out that the debt is time barred and outside of SOL.

If the creditor does sue within SOL, then that sets a new SOL and that can range 10 to 20 years.

I don't hear of it much, but if a judgment goes unpid, then the creditor might be able to attach a lien against your home if you are a home owner. That means that you can't sell your house without first paying off the lien.

A lien can show up on the credit report indefinitely, there is no statute of limitations. Once paid it can come off the credit report 7 years after the pay date. I have heard of some cases where the lien expired, but I don't know what the circumstances where that got the lien released.

8. You might have to deal with a collection agency you should read up on the Fair Debt Collection Practices Act http://www.ftc.gov/os/statutes/fdcpajump.shtm

Be sure to read section 908 Debt Validation

If a collection agency gets the account, be sure to send them a request for debt validation get it in as soon as you know they have the account. Don't tale to collection agency reps on the phone. Communicate only by writing. If you offer to pay them send money order don't send check. Remember you should have closed the checking / saving account so they can't garnish your funds. Remember to get negotiation confirmed by letter from them to delete the collection account off of your credit report. The collection account can report within the 7 years of the original creditors listing. Once the OC expires the collection agency listing will also expire.

9. When you send in request for debt validation dispute with the credit reporting agency, look for errors or dispute the balance that is always changing and it may be wrong. Ask for deletion each time you dispute, If the collection agency for some reason does not process the dispute the credit reporting agency might have to delete it off of the credit report.

The collection agency can always add it back later, but if they do then the credit reporting agency must give you five business day notice of reinsertion. If they don't then send a follow up dispute asking them to delete off of the credit report for good due to not having been given notice or reinsertion, It can work out this way, I have had accounts deleted by this method.

10. If item does not come off, then give it a few months and re-dispute again. If you re-dispute to soon, the credit reporting agency can deem the dispute frivolous and refuse to investigate further.

The best outcome is if you can save the account and not incur any late or charge off status. Transfer the balance over to a new card if you can.

There are new laws going to take affect within the next 3 months, it should be in affect after February. So for now the credit card companies are sticking it to the consumers before they are limited on what they are allowed to do.

http://www.bankrate.com/finance/credit- ... law-1.aspx

Please let me know how you are doing, maybe I can be of further help.