Chase And Their New Account Service Charges

[Anonymous]

another victim..

http://www.ripoffreport.com/reports/0/392/RipOff0392945.htm

[Anonymous]

It now looks like the age of the BT is a major factor. My account that was hit with the change in terms notice (Card 2) is my oldest BT.

I wandered over to Card Ratings, which also has a thread on this topic. Then I noticed an October thread there, about the latest Chase BT checks:

http://www.cardratings.com/forum/viewtopic.php?f=39&t=19593

The newest round of BT checks have different terms than in previous months, specifically:

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"This special rate is offered to you as a preferred customer. If during the next 24 billing cycles you do not use the account referenced above to make a total of at least $1,500 in purchases, we may terminate your promotional APR. We may then charge you the APR that would otherwise apply to account balances at that time; assess an account maintenance charge to your account; and/or increase the required minimum payment on your account."

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So essentially, Chase's January 1st change in terms might be an attempt to retroactively apply some of these new terms to "for life" BT balances that were transferred years ago, just to punish those who were smart enough not to charge purchases on top of a low-rate BT.

And apparently, Chase has now re-defined "for life" as meaning "2 years maximum" ...

Message Edited by Revike on 11-19-2008 09:50 PM

[MidnightVoice]

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plasticguy wrote:

 http://online.wsj.com/article/SB122714426964243103.html?mod=todays_us_personal_journal

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http://ficoforums.myfico.com/fico/board/message?board.id=creditnews&thread.id=3348&jump=true

J.P. Morgan Chase & Co.'s Chase unit is raising its rates on credit-card cash advances and overdraft protection, as well as its default rate, which is triggered when cardholders exceed their credit limit or are late on their payments. The bank will also start charging a new $10 monthly service fee to some cardholders who have been carrying large balances for at least two years, while raising their monthly minimum payments to 5% of their outstanding balance, from 2%......

Chase's new monthly fees and higher minimum payments will mainly affect customers who have been carrying large balances on cards with low promotional rates for at least two years, says spokeswoman Stephanie Jacobson.

"The total number of customers is relatively low, but the balances that these customers carry amount to billions of unsecured debt," she says. While these customers cannot opt out of the new terms, she says, they can pay off their balances or maintain their current minimum payments in exchange for giving up their promotional rates. A higher rate, however, means that more of a customer's monthly payment goes for interest and less to repay the loan.

[voidman]

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@haiti222 wrote:

More info here....They seem to be applying the fee to people with low rates and low rate balance transfers that they don't like anymore.....

http://www.ripoffreport.com/reports/0/388/RipOff0388782.htm 

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From the report, it looks like a sub-prime guy is with a "prime" bank.  Just like Amex started cleaning up with such accounts, but instead of "chaseing" the balance and closing it, chase is trying to earn on its way. 

Chase is a creditor, and all creditors are same and work towards their profit. 

Just a note about my experience, 

When I got the chase freedom card, I got a call from Chase to check if I wanted to transfer a balance. I told them I have no balance to transfer. Then the guy congratulated me on managing the credit well.

I guess this means, Chase really does not like BTs but they have it in the product as a means of attracting people. 

[Cleanmachine]

I have a couple of low balance transfer rates with Chase. I did call Chase and requested to know if my several low balance transfer accounts would be affected by these changes. The CSR informed me that my accounts were in good standing and would not be effected.

I guess time will tell.

I suppose the bottom line is what exactly do they mean when Chase states the only accounts that carry Large Balances would be effected.

What is their interpretation of "Large Balances"??

[Anonymous]

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@voidman wrote:

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@haiti222 wrote:

More info here....They seem to be applying the fee to people with low rates and low rate balance transfers that they don't like anymore.....

http://www.ripoffreport.com/reports/0/388/RipOff0388782.htm 

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From the report, it looks like a sub-prime guy is with a "prime" bank.  Just like Amex started cleaning up with such accounts, but instead of "chaseing" the balance and closing it, chase is trying to earn on its way. 

Chase is a creditor, and all creditors are same and work towards their profit. 

Just a note about my experience, 

When I got the chase freedom card, I got a call from Chase to check if I wanted to transfer a balance. I told them I have no balance to transfer. Then the guy congratulated me on managing the credit well.

I guess this means, Chase really does not like BTs but they have it in the product as a means of attracting people. 

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I think you are right that Chase is like any creditor, out to make money, but I don't necessarily think they don't like BT's.  

I think they think what any creditor thinks: 

Let's give them a low rate BT and

1. Hopefully they won't pay it off prior to the rate ending

2. Or they default and we can charge them a lot.  

What I would guess they don't like is people that do BT's and either never default, or get them paid off prior to the rate ending.  Then don't earn any money.

[voidman]

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@Cleanmachine wrote:

I have a couple of low balance transfer rates with Chase. I did call Chase and requested to know if my several low balance transfer accounts would be affected by these changes. The CSR informed me that my accounts were in good standing and would not be effected.

I guess time will tell.

I suppose the bottom line is what exactly do they mean when Chase states the only accounts that carry Large Balances would be effected.

What is their interpretation of "Large Balances"??

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I think Large balance & for how long it has been like that is also a factor, Paying little over the minimum payment is not what banks are going to like these days. 

[voidman]

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@Anonymous wrote:

I think you are right that Chase is like any creditor, out to make money, but I don't necessarily think they don't like BT's.  

I think they think what any creditor thinks: 

Let's give them a low rate BT and

1. Hopefully they won't pay it off prior to the rate ending

2. Or they default and we can charge them a lot.  

What I would guess they don't like is people that do BT's and either never default, or get them paid off prior to the rate ending.  Then don't earn any money.

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Hi Woopah, 

I agree with you and that makes sense only when banks had enough money to lend. Now the situation is different, they might consider BTs a possible risk... 

If a person does a BT and pays only the minimum or little over it, then he is certainly a risk in the current situation, making minimum payment on time does  not make you look good. 

[hyprble]

I think I was hit with the $10/mo fee/5% minimum payment increase because I had a 5.99 fixed balance transfer.  The card started out with FirstUSA, then turned into Chase.  I never charged anything to the card so I could keep that 5.99 apr (haha, my purchase rate was 27% or something insane) nor was I ever late with a payment, so it stuck at 5.99%.

[Anonymous]

How much does Chase (and other CCs) like to see you pay, if paying only the minimum isn't really good enough?  I recently took a 3.99% for-life BT from Chase for $11.5K.  I will pay them $240/month every month (same as the original loan the BT replaced). 

Right now, my next minimum payment will be about $223.  I will pay my $240 the day after the statement cuts.  As the balance goes down, the $240 will represent an amount increasingly larger than the minimum.  At what point will they be happy?

On another account (Citi), I have a $7K balance at 0% until next April (then I plan to PIF).  I have been paying the minimum twice each cycle: once manually and one with autopay (which I still don't trust).  Would double the minimum be enough to keep any bank happy?

Message Edited by Mike14 on 12-08-2008 01:40 PM