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Valued Contributor
Posts: 1,549
Registered: ‎09-01-2011
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CARD Act & Upgrading Existing Accts?

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 :/

Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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Re: CARD Act & Upgrading Existing Accts?

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.




Established Contributor
Posts: 792
Registered: ‎08-30-2011
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Re: CARD Act & Upgrading Existing Accts?

[ Edited ]

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.

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Moderator Emerita
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Re: CARD Act & Upgrading Existing Accts?

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...

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Valued Contributor
Posts: 1,549
Registered: ‎09-01-2011
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Re: CARD Act & Upgrading Existing Accts?

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.

Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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Re: CARD Act & Upgrading Existing Accts?

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.




Established Contributor
Posts: 510
Registered: ‎04-16-2011
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Re: CARD Act & Upgrading Existing Accts?

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?


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Super Contributor
Posts: 6,677
Registered: ‎04-07-2008
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Re: CARD Act & Upgrading Existing Accts?


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.




Moderator Emeritus
Posts: 17,409
Registered: ‎07-14-2009
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Re: CARD Act & Upgrading Existing Accts?

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.

 

 

 

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Valued Contributor
Posts: 1,549
Registered: ‎09-01-2011
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Re: CARD Act & Upgrading Existing Accts?

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.

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