topic Re: CARD Act & Upgrading Existing Accts? in Credit Cards

CARD Act & Upgrading Existing Accts?

mxp114 — Mon, 30 Jan 2012 16:36:58 GMT

Rep from Chase just told me that the CARD Act prevents them from upgrading or performing any product changes for min of 12 months. Does it really? I can't find that part in this legislation. Besides why would Congress enact legislation that prevents you from initiating an upgrade from a Saphhire to Sapphire Preferred card for 12 months? Just trying to understand :/

Re: CARD Act & Upgrading Existing Accts?

CS800 — Mon, 30 Jan 2012 16:42:14 GMT

Thats the part that I havent found either. I remember someone posting that they PC a card (both no AF) But this legislation doesnt make sense. There are way more things that this legislation could have done for the consumers.

Maybe someone on here can answer this logic.

Re: CARD Act & Upgrading Existing Accts?

flowfaster — Mon, 30 Jan 2012 16:47:03 GMT

I also just tried to PC from an Amazon Visa to a Freedom and she said it was possible but the Card Act Prevents her from PCing my account for 1 year. So she said try again when my account is 1 year old.

Re: CARD Act & Upgrading Existing Accts?

haulingthescoreup — Mon, 30 Jan 2012 16:46:56 GMT

This is a chicken (IMO) response by banks.

The Credit CARD Act prevents random rate-jacking (rate increases) on CC accounts. If you want to upgrade to a card with a higher APR, your account is still technically the same account, so the banks say that they can't change the card, because it would result in a rate-jack.

Lawyers, lawyers...

Re: CARD Act & Upgrading Existing Accts?

mxp114 — Mon, 30 Jan 2012 16:51:09 GMT

I figured this is a case of Chase applying the CARD Act too broadly, probably more expansively than Congress ever intended. I doubt the legislative goal was to prevent cardmembers from upgrading from Disney to Disney Premier in a few months or Amazon to Freedom, etc. So I guess either Congress will have to clarify intent or a federal court interprets the law in a way that allows banks to PC at consumer request? I don't see either happen so I guess Chase will enforce this silly 12 month rule.

Re: CARD Act & Upgrading Existing Accts?

CS800 — Mon, 30 Jan 2012 16:53:29 GMT

I think in chase's interpretation of 'rate jacking' , they are already assuming that a PC or upgrade will mostlly lead to a higher APR.

Re: CARD Act & Upgrading Existing Accts?

Juan123 — Mon, 30 Jan 2012 16:54:35 GMT

so what if you're PCing to a card with a lower rate? it's not rate jacking.. its the opposite... so it wouldn't apply?

Re: CARD Act & Upgrading Existing Accts?

CS800 — Mon, 30 Jan 2012 19:24:00 GMT

Juan123 wrote:
so what if you're PCing to a card with a lower rate? it's not rate jacking.. its the opposite... so it wouldn't apply?

I think the best answer to this one would be to engage a credit analyst supervisor on this one wit hteh credit card act. Tell them what you see and your interpretation and see what they tell you. We are just guessing what Chase's logic is.

Re: CARD Act & Upgrading Existing Accts?

MarineVietVet — Mon, 30 Jan 2012 21:24:40 GMT

I believe this is the part of the Credit Card Act they use:

‘‘SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.

‘‘(a) LIMITATION ON INCREASES WITHIN FIRST YEAR.—Except in the case of an increase described in paragraph (1), (2), (3), or (4) of section 171(b), no increase in any annual percentage rate, fee, or finance charge on any credit card account under an open end consumer credit plan shall be effective before the end of the 1-year period beginning on the date on which the account is opened.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: CARD Act & Upgrading Existing Accts?

mxp114 — Tue, 31 Jan 2012 04:49:15 GMT

Thanks Marine, so I understand why you can't go from Disney to Disney Premier due to the "increase" of the AF however why not Freedom to Sapphire? Also that text is pretty broad, it doesn't preclude any and all changes and I think could be interpreted in a way that permits a consumer initiated change that would result in APR/AF changes.

Re: CARD Act & Upgrading Existing Accts?

MarineVietVet — Tue, 31 Jan 2012 05:13:58 GMT

mxp114 wrote:
Thanks Marine, so I understand why you can't go from Disney to Disney Premier due to the "increase" of the AF however why not Freedom to Sapphire? Also that text is pretty broad, it doesn't preclude any and all changes and I think could be interpreted in a way that permits a consumer initiated change that would result in APR/AF changes.

Hey you're preaching to the choir here!! :smileyhappy: I fully agree with you.

Re: CARD Act & Upgrading Existing Accts?

mxp114 — Tue, 31 Jan 2012 08:16:32 GMT

lol Marine

Can we get the Chase CEO or Chief Legal rep on here? I guess they want to simplify and streamline the process, so instead of creating exceptions, it is easier to have one rule regarding 12 months without any changes. It's truly unfortunate but I guess I will have to wait.

Re: CARD Act & Upgrading Existing Accts?

RyVision — Tue, 31 Jan 2012 12:18:56 GMT

mxp114 wrote:
lol Marine

Can we get the Chase CEO or Chief Legal rep on here? I guess they want to simplify and streamline the process, so instead of creating exceptions, it is easier to have one rule regarding 12 months without any changes. It's truly unfortunate but I guess I will have to wait.

Those people have way too much power, money and "more important things to do" than to be bothered talking with the likes of us LOL

And they're not afraid of the CARD act, they'll do what they WANT to do, and what they want to do is use it to their advantage. So, it's often used as an excuse for things it doesn't specify. Usually, CSR's will often just say "because of the new laws" LOL :smileylol:

Re: CARD Act & Upgrading Existing Accts?

RyVision — Tue, 31 Jan 2012 12:24:06 GMT

CS800 wrote:
Thats the part that I havent found either. I remember someone posting that they PC a card (both no AF) But this legislation doesnt make sense. There are way more things that this legislation could have done for the consumers.

Maybe someone on here can answer this logic.

CS, you hadn't had enough coffee by the time you posted that had you :smileywink:

1. Legislation isn't written to make sense to average Americans.

2. It's never written to be that effective for consumers.

3. It's written in legalese to keep lawyers well paid and laymen confused. (Have you not noticed 90% of our higher up elected officials are attorneys? Yet we keep electing rich attorneys...).

Re: CARD Act & Upgrading Existing Accts?

melbaro — Fri, 05 Oct 2012 21:56:05 GMT

Sorry for necro-thread-bumping...

I just tried converting my Freedom from MC to Visa Signature. I have the $5000 limit and just got a CSP MC (figured MC was better worldwide and Visa better locally). However, they said they could only convert it to a regular Visa, and I'd have to wait the 12 months for the "upgrade"...

I've tried with CSR's and via the branch back office numbers with the same answer. Is this really a PC??

Re: CARD Act & Upgrading Existing Accts?

djrez4 — Fri, 05 Oct 2012 22:12:09 GMT

I recently asked the same question about my Freedom and received the same response. There's no increase in AF between the regular Freedom and the Signature. My theory (and, being one of RyVision's hated lawyers) is that the introductory interest rate of 0% may need to be canceled for the PC, which would constitute a rate-jack under Section 172. Whether that's the case or not, I have no idea. It's the only justification I can fathom.

Re: CARD Act & Upgrading Existing Accts?

calihlove75 — Fri, 05 Oct 2012 22:22:02 GMT

I had called a few weeks ago about a lower APR on my chase amazon and I was told the card act prevents that. I then asked about a product change to the Freedom Mastercard and was told the card act prevents that too. I guess I will wait until the account is a year old to do anything with this account.