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New Chase "Account Service Charge"

New Contributor

New Chase "Account Service Charge"

I just looked at the Change in Terms that came with my latest e-statement and found that it has a new $10/mo "account service charge" which they say over and over is a "finance charge" which does not affect APR. Mind you, when I opened the account a few years ago I did a balance transfer that was given a 4.9% APR for the life of the balance on which I am still paying the minimum payment on each month. Balance is now in the $700-800 range, meaning about $3/mo interest. Quote: The key factors we considered when making this change include the current APR and revolving balances associated with your account.

 

If it were an annual fee, I could close the account but keep the balance until it were paid but this notice also says that in order to avoid the fee I must close the account and pay the balance in full.

 

Has anyone else received this notice and is it just me or does this smack of "this was the only way we could legally get around the fact that we said we weren't going to raise your interest rate when in fact we are doing just that."

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Valued Contributor

Re: New Chase "Account Service Charge"

Message 2 of 6
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Super Contributor

Re: New Chase "Account Service Charge"

There was a long thread about this last week.  I hope some nice kind forum member will be able to remember where the hell it is, because I can't find it  Smiley Sad
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Message 3 of 6
Senior Contributor

Re: New Chase "Account Service Charge"


JuliaTN wrote:

 

[1.] Has anyone else received this notice and

[2.] is it just me or does this smack of "this was the only way we could legally get around the fact that we said we weren't going to raise your interest rate when in fact we are doing just that."


1.  yes.  there are recent posts here about this. 

 http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&message.id=129704&query.id=13456...

 

2.  yes.  banks are in trouble and want to direct customers (esp. those running low/zero apr lifetime deals too slowly) to pay back the money more swiftly.

DCU EQ 5.0, Citi EQ 08 Bankcard, PenFed EX NG2
EX 08: AFCU, Amex, Chase, PSECU EX 98(?)
TU 08: Barclays, Discover
Message 4 of 6
New Contributor

Re: New Chase "Account Service Charge"

So, shall I volunteer to be the one to keep up with who wants to be the filing parties to the class action suit or has someone already taken that role?

 

Why in the world would Chase want to $%*# off their clients who are at least paying them back?? I realize I'm not exactly a golden egg laying goose for them but they won't be getting another red cent from me now.

Message 5 of 6
Moderator Emerita

Re: New Chase "Account Service Charge"

Because they're losing money on people with 0% and very low APR's on balances who are paying back as slowly as possible (as people might be expected to do with that sort of deal.) Smiley Sad

Banks are hurting for cash, and they're getting pretty inventive at finding ways to get it. Hard to believe that this is legal, though.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
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