03-17-2009 07:18 PM
So my rate is going from a 9.99% to a 12.24% in April because [they] "Need to maintain profitability on my account". Currently I have an $8,000 balance.
So, upset that my rate is going up because, I guess, I've always paid on time for the last 6 years on this account and have never missed payments, I started ask a few questions of them.
First I contacted their Proactive Solutions Dept (Debt Mgt P) to see it they would offer me payment options at a reduced IR. They said that they, in fact, could raise my rate. They can only reduce my monthly minimum in case I could not afford the monthly payment... With a possible rate increase.
I then asked,; If their dept existed to ensure payment then why would they not be willing to work with me so that they could get 100% of their money back. He didn't know.
I then posed the question.... What if I failed to pay at all? I would then go to collections and they might get 50 cents on the dollar. What kind of win is that for them? Again he said he didn't know but he at least agreed with me.
So the question is this, If they are raising their rates to either collect more revenue from the good customers due to the default of the bad. Or, if they just want me, a "liability" off their books to stop the bleeding. Why would they not want to take my deal of paying them the entire balance over say 12 -24 months, close my account in the meantime and get me off their books?
Any thought to ponder from you all?
03-17-2009 08:12 PM
First, I am sorry for your troubles, it sucks and you have my support. Second, be very careful with Chase, they are very ruthlessly unethical and dirty when it comes to collecting. Before I get flamed or people jumping on me, let me give you some details to back that statement up.
My wife had a really old Chase card and had paid it off and closed it over 8 years ago. Then suddenly out of the blue we get a notice that her wages are being garnished. Keep in mind NO notices of ANY kind regarding this. So we requested her HR to provide us a copy of the order and I used that to track down the original order, then based on that I tracked down and found a filing about 2 years old in superior court against her for 9k.
I dug up the information by asking the court to provide me the papers and found out that at some point over 8 years later after she closed the account with a 0 balance, they filed a lawsuit JPMorgan Chase, 300 Grand Ave, LA and submitted false paperwork saying they served her at an address that has not been her residence for more than 5 years, so it is a fact they are lying. They then obviously got a default judgment because we had no idea and the court is sending papers to the an address 5+ years old and someone is getting them and dumping them or its being returned to them and yet they still tell no one the address is no good anymore. They then keep tacking 10% a day penalty to the judgment of 9k+ they got and they eventually went and asked for a garnishment order and we found out finally that even a lawsuit existed.
Now here is the kicker, we have filed a motion to vacate the judgment and provided ample proof that they are lying, they have not ONCE appeared in court against us to challenge our claim, they have not ONCE replied to a single request of the court to challenge anything we have expressed but the court has refused repeatedly to reverse the judgment stating that since the case is beyond appeal time frame, they can't, even though obvious abuse of the judicial process has occurred. No attorney will tough it, I can't even get them to do anything, although most of my specialty lies in criminal procedure and we are stuck with this bull judgment and no one will do ANYTHING about it and they are sitting pretty. the only small victory was that I got the garnish reduced from 25% of her pay down to a fixed $50 per pay but that is just absurd because the fees attaching have this thing running up to 11k already. I have written them and they have failed to reply to any communications.
So they are literarly using the loop holes of the law to screw people into paying charges that are 100% bogus and libailities that have NEVER EVER existed. Now imagine what they will pull on legitimately owed debt. And the law will do nothign to help you. I am running this up the appelate flag pole with no luck and hope to get it in the CA supreme court for some serious judicial ass whooping down the line if I can manage it but it has been nothing but a nightmare for nearly 3 years and it's all from a bogus non-existent debt. That's what hurts the most.
03-17-2009 08:18 PM
03-17-2009 09:23 PM
I'm sorry for your experience, but it's my experience that they don't work with you until you have at least missed that first payment and sometimes a couple missed payments. It's like the mortgage mess, people have been calling saying I'm adjusting again can we please lock in rate... the answer... no because you are currently current and those offers are only for delinquent accounts!
Yeah its one of those catch 22 situations. Its a choice between keep your credit good or qualify for the assistance, it sucks. This is why I think this whole bail out/financial stimulus is just poorly designed.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.