I don’t usually post on Saturdays, but an important issue came up this morning. In the name of financial preparedness, I’m sharing it with you as I believe it’s vital to those who are trying to make the best financial decisions to be better prepared.
Chase Bank has just informed hundreds of thousands of card holders who were beguiled with a “low, low interest rate for the life of the balance of your credit card” deal that their minimum payment is going up.
As you know, a bill was recently passed which forbids credit card companies from increasing your RATE. But there is nothing that says they can’t increase your minimum payment. Well, get this. My sister’s minimum payment is more than doubling! It went from $500 a month to $1300 a month! BUT… Chase Bank is telling their customers that if they want the low minimum payment they are welcome to apply for a higher interest rate card!
It’s understandable why a lot of people are incensed by this. It’s a mockery of the bill that was passed and it’s an unfair punishment in the name of greed against all of the credit-worthy customers who qualified for this excellent low rate in the first place.
May I suggest that you not only get rid of your Chase Bank credit cards, but to get rid of your personal and business checking accounts there too. As the song goes “You’ve got to stand for something or you’ll fall for anything.”
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28 Comments
Missy Moose · June 27, 2009 at 8:05 pm
I’m just wondering what kind of a balance could have a $500 a month minimum? I think even when I had $5,000 on a card, the minimum was something like $150 or $175? I never really knew because we paid it off in a year, but still… WOW. That could really hurt.
Missy Moose · June 27, 2009 at 8:05 pm
I’m just wondering what kind of a balance could have a $500 a month minimum? I think even when I had $5,000 on a card, the minimum was something like $150 or $175? I never really knew because we paid it off in a year, but still… WOW. That could really hurt.
Missy Moose · June 27, 2009 at 8:56 pm
That sucks. 🙁
Missy Moose · June 27, 2009 at 8:56 pm
That sucks. 🙁
wade · June 27, 2009 at 11:54 pm
I would recommend that people get rid of all of their cards. Or, at least get rid of all of them except one and then use that one as you would a debit card. If you do not have the money to pay of the purchase online as soon as you get home from the store, then you shouldn’t be making the purchase. The only reason that you should have a credit card is for emergencies and to get freebies such as cash back and air miles. I understand that there are a few unfortunate exceptions (such as your sister’s medical bills perhaps), but you are foolish to spend money you do not have. Living immodestly beyond our means is going to catch up to this nation very soon and it’ll be a world of hurt.
wade · June 27, 2009 at 11:54 pm
I would recommend that people get rid of all of their cards. Or, at least get rid of all of them except one and then use that one as you would a debit card. If you do not have the money to pay of the purchase online as soon as you get home from the store, then you shouldn’t be making the purchase. The only reason that you should have a credit card is for emergencies and to get freebies such as cash back and air miles. I understand that there are a few unfortunate exceptions (such as your sister’s medical bills perhaps), but you are foolish to spend money you do not have. Living immodestly beyond our means is going to catch up to this nation very soon and it’ll be a world of hurt.
jdb · June 28, 2009 at 5:24 pm
Seems like all the card companies are trying to put the screws to their customers right now. It’s all because our wonderful Congress decided to “help” consumers by ending “unfair” practices… next year, giving the credit card companies a convenient scapegoat and time frame for exploiting their customers.
BoA raised their rates across the board. Thankfully, we’d already closed our card with them.
Citibank slashed our limit without telling us (which is actually fine, since we’re canceling them; still, you’d expect at least a courtesy note). After jacking up the rate, slapping us with an annual fee, and upping the minimum payment.
Our Discover card (free Sam’s Club membership) froze our payoff since we’d already paid once that month. Then, while it was frozen, they slashed the limit. Looked like some sneaky attempt to charge an over-limit fee, though they claimed they weren’t going to do so. We’ll see.
Capitol One is instituting some draconian changes, but at least had the decency to wait until December 2010 to implement them (at least with everyone I know who has a card with them). They sound like the least indecent of the bunch to me.
I can’t imagine what people who didn’t jump off the debt treadmill when we did are going through right now…
jdb · June 28, 2009 at 5:24 pm
Seems like all the card companies are trying to put the screws to their customers right now. It’s all because our wonderful Congress decided to “help” consumers by ending “unfair” practices… next year, giving the credit card companies a convenient scapegoat and time frame for exploiting their customers.
BoA raised their rates across the board. Thankfully, we’d already closed our card with them.
Citibank slashed our limit without telling us (which is actually fine, since we’re canceling them; still, you’d expect at least a courtesy note). After jacking up the rate, slapping us with an annual fee, and upping the minimum payment.
Our Discover card (free Sam’s Club membership) froze our payoff since we’d already paid once that month. Then, while it was frozen, they slashed the limit. Looked like some sneaky attempt to charge an over-limit fee, though they claimed they weren’t going to do so. We’ll see.
Capitol One is instituting some draconian changes, but at least had the decency to wait until December 2010 to implement them (at least with everyone I know who has a card with them). They sound like the least indecent of the bunch to me.
I can’t imagine what people who didn’t jump off the debt treadmill when we did are going through right now…
k · June 28, 2009 at 8:19 pm
Nobody should be carrying credit card balances on a regular basis.
Sorry for your sister’s medical issues, but hospitals do work with patients on payment issues — I do know from experience. Catch is, the patient has to ask — the hospital won’t offer. Too bad it’s already on the card 🙁
I don’t blame Chase or other companies. They need to make a profit. No credit card is a necessary right — it’s a convenience only — and a potential millstone for some people. Congress is interfering with the free market and they should be the ones receiving your anger. Arrogant sobs.
k · June 28, 2009 at 8:19 pm
Nobody should be carrying credit card balances on a regular basis.
Sorry for your sister’s medical issues, but hospitals do work with patients on payment issues — I do know from experience. Catch is, the patient has to ask — the hospital won’t offer. Too bad it’s already on the card 🙁
I don’t blame Chase or other companies. They need to make a profit. No credit card is a necessary right — it’s a convenience only — and a potential millstone for some people. Congress is interfering with the free market and they should be the ones receiving your anger. Arrogant sobs.
Pickdog · June 29, 2009 at 4:20 pm
I just got a letter from Bank of America telling me that my card will become a variable rate card as opposed to a fixed rate card.
I will be mailing it back to them soon.
Pickdog · June 29, 2009 at 4:20 pm
I just got a letter from Bank of America telling me that my card will become a variable rate card as opposed to a fixed rate card.
I will be mailing it back to them soon.
NYCrochet · June 29, 2009 at 6:29 pm
We’re dealing with this now. Chase rep blamed the government, saying they “urged them” to have people pay they debt back more quickly.
NYCrochet · June 29, 2009 at 6:29 pm
We’re dealing with this now. Chase rep blamed the government, saying they “urged them” to have people pay they debt back more quickly.
Angie · July 2, 2009 at 6:49 pm
After years of going back and forth with credit card debt (minor to moderate), I finally managed to not only pay everything off but to finally use credit cards to my advantage.
I currently have a Chase Rewards card that I put all purchases on (I think my mortgage, insurance and HOA are the only things I can’t put on it!). I pay the balance in full each month and accumulate cash rewards. So far, Chase has offered a check for $250 after you’ve let your balance reach $200. Why they do this I don’t know but they did up until just a couple of months ago.
I made more than $500 with them in 2008 without paying any late fees or finance charges.
If you’ve learned self-restraint and have a system/budget in place that allows you to pay your balance in full each month, credit cards can actually be made to work for you instead of against you.
Angie · July 2, 2009 at 6:49 pm
After years of going back and forth with credit card debt (minor to moderate), I finally managed to not only pay everything off but to finally use credit cards to my advantage.
I currently have a Chase Rewards card that I put all purchases on (I think my mortgage, insurance and HOA are the only things I can’t put on it!). I pay the balance in full each month and accumulate cash rewards. So far, Chase has offered a check for $250 after you’ve let your balance reach $200. Why they do this I don’t know but they did up until just a couple of months ago.
I made more than $500 with them in 2008 without paying any late fees or finance charges.
If you’ve learned self-restraint and have a system/budget in place that allows you to pay your balance in full each month, credit cards can actually be made to work for you instead of against you.
Believer · August 23, 2009 at 10:42 pm
I was just notified that my Sears card, (which is with Citibank), is raising their APR to 25.24% for purchases, and for cash access to 27.15%. It was at 5.99%. Talk about loan sharks.
Believer · August 23, 2009 at 10:42 pm
I was just notified that my Sears card, (which is with Citibank), is raising their APR to 25.24% for purchases, and for cash access to 27.15%. It was at 5.99%. Talk about loan sharks.
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