Screw CHASE!!!!

[Anonymous]

update:

thank you, again, Lel, for the government link to the CARD ACT .

I just got 'the letter' and I was appalled to see that Chase knew they were affecting people whose purchases might be over the 'new' $500.00 credit limit.    Not everyone was a 'rarely used the card' after all.  Just a Washington Mutual member who was profiled as a risk.  Sucks to be us.  Those who are now over the credit limit, through no fault of their own (since Chase didn't do computer or manual reviews of actual credit reports when making this decision?) in spite of being under the credit limit when they used the card, are now going to have 45 days to pay down.

They 'may' (weasel word) also incur an APR increase and over the limit credit fees if they don't pay down to under the 'new' 500.00 limit.  

What happened to opting in to credit limit fees, post CARD ACT?  Sure, we are told 'If permitted on your account and you have elected to accept overlimit fees as part of an overlimit protection service, an overlimit fee may also be assessed after this 45-day period'.  Wow.    Yeah, we should all be good little worker bees paying in full each month; with hundreds of thousands of dollars of credit utilization not being tapped elsewhere;  but reality says that's not how everyone rolls, or can roll.  But good consumers are paying down anyway.  So someone makes a big purchase on the 'wrong day', and suddenly they're over the credit limit.

Would this also affect their standing with Chase in other ways?

The envelope just has a window showing 'cardmember service' to give people a clue about what this is about.  The envelope itself is blank and anonymous.   There is no postmark.  It's dated March 26, 2010.

I've filed with the Federal Trade Commission and the Federal Reserve.  My legislators will hear from me next, just for completion, since they're probably going to be as interested in all this as they were (non)interested in the protests of Fall 2008.

In reading the CARD ACT (using the Find searches 'credit limit' and 'over-the-limit') I found:

HR 627  CARD ACT

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@Anonymous 627  CARD ACT wrote:

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‘SEC. 172. ADDITIONAL LIMITS ON INTEREST RATE INCREASES.
‘(k) Opt-in Required for Over-the-Limit Transactions if Fees Are Imposed-
'‘(5) REGULATIONS- The Board shall prescribe regulations--
‘(B) that prevent unfair or deceptive acts or practices in connection with the manipulation of credit limits designed to increase over-the-limit fees or other penalty fees.

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and also

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@Anonymous 627  CARD ACT wrote:

SEC. 505. REPORT TO CONGRESS ON REDUCTIONS OF CONSUMER CREDIT CARD LIMITS BASED ON CERTAIN INFORMATION AS TO EXPERIENCE OR TRANSACTIONS OF THE CONSUMER.

(a) Report on Creditor Practices Required- Before the end of the 1-year period beginning on the date of enactment of this Act, the Board, in consultation with the Comptroller of the Currency, the Director of the Office of Thrift Supervision, the Federal Deposit Insurance Corporation, the National Credit Union Administration Board, and the Federal Trade Commission, shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the extent to which, during the 3-year period ending on such date of enactment, creditors have reduced credit limits or raised interest rates applicable to credit card accounts under open end consumer credit plans based on--

(1) the geographic location where a credit transaction with the consumer took place, or the identity of the merchant involved in the transaction;

(2) the credit transactions of the consumer, including the type of credit transaction, the type of items purchased in such transaction, the price of items purchased in such transaction, any change in the type or price of items purchased in such transactions, and other data pertaining to the use of such credit card account by the consumer; and

(3) the identity of the mortgage creditor which extended or holds the mortgage loan secured by the primary residence of the consumer.

(b) Other Information- The report required under subsection (a) shall also include--

(1) the number of creditors that have engaged in the practices described in subsection (a);

(2) the extent to which the practices described in subsection (a) have an adverse impact on minority or low-income consumers;

(3) any other relevant information regarding such practices; and

(4) recommendations to the Congress on any regulatory or statutory changes that may be needed to restrict or prevent such practices.

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I don't know what any of this means.  I'm not a lawyer.   My eyes glaze over with this stuff.  However, if there is a pattern of discrimatory practice that ends up affecting one group disproportionately to another, it would be better if there were consumer complaints to go with it instead of just the word of the banks and statisticians.

Undercutting people's credit limits so that they're over the credit limit then giving them 45 days to pay or they 'may' incur an APR rate increase or over the limit fee, .........   that ain't right.  It says on the letter that if you have elected to accept overlimit fees, an overlimit fee may be assessed.  So what happens if you don't accept, if you don't opt in?  Are you now not only CLD'd but account closured as well? 

In unrelated news, this mess gave me the courage to cancel Capital One.   I called capital one's automated line to check to see if i would be eligible for a credit limit increase, since today is the day they are rumored to begin allowing customer initiated requests once every 90 days.  I am not eligible.   Like Sandra Bullock, it's time to let go.  There is no 'well maybe if I hold on a little longer'.   It's time to let go.  All the signs were there.  Time to act on them.  I've had this card for a long, long time.  It was good when I had nowhere else to turn and didn't know there were places to turn to, sub600.  Rewards cash and no annual fee?  A godsend.

But it didn't grow with me.  It never will.  Time to move on from a dead end.   Bye bye Capital One Platinum.

I'm still a sucker for 'hold on a little longer' with Chase on this one.  I'm also a little afraid of a Bank of America  type retaliatory action by Chase CSRs towards my other accounts.  I'll see, though.  If I do close Chase, I'll give them the reference numbers to the reports I've filed.  But I do want it to be my choice, not 'cancelled by credit grantor'.  OK. That's my update.

[Anonymous]

CREDIT UNION

[Anonymous]

This won't be a popular response, and I'm prepared for the thrashing I'll get, but...

Why is it that people think they are entitled to the credit lines that they have had in the past?  Or why do they think they are entitled to a CLI?  These are private businesses that need to make decisions based on their particiular business models. No private business should be required to give credit just because somebody's a "good customer".  And before somebody starts talking "bailout", read up.  The gov't appears to be making money off their bailout investments.

[wmarat]

Credit is neither right nor privilege, credit is a product. Credit company extends credit according to certain set of conditions ( FICO score, length of history, income, eye color, accent, whatever). I as a customer have my own set of conditions to use credit (initial credit line, CLI's, APR, rewards, customer service, online banking, hold time, etc.) Besides, being thanks to myfico.com, educated customer I have an additional condition: to spend $X on credit card, my credit limit must be 10 times more than spent sum. So, if CCC wants me to spend my money using its credit card, they have to provide me with appropriate credit limit. Chase has refused to do so, which is their right. But I charge $6.00 monthly on their card, get monthly paper statement and ask for 2 replacement cards every 3 months.

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@Anonymous wrote:

This won't be a popular response, and I'm prepared for the thrashing I'll get, but...

Why is it that people think they are entitled to the credit lines that they have had in the past?  Or why do they think they are entitled to a CLI?  These are private businesses that need to make decisions based on their particiular business models. No private business should be required to give credit just because somebody's a "good customer".  And before somebody starts talking "bailout", read up.  The gov't appears to be making money off their bailout investments.

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[Anonymous]

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@FantumGrey wrote:

I just got hit today on my old WAMU converted to Chase...went from $6k to $500. I didn't really use my card either since the apr is a not very nice 22.24%. The only thing really killing me right now is that last year I got a Chase Amtrak Rewards card and when the lady asked me if I wanted to shift some of my credit limit from the WAMU card to that one, I said no. Oh well, hindsight is 20/20...and Chase just lost me as a customer.

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Oh my my ....  may be it was a signal / warning from Chase.   Sorry for it happened to you.  

I just learned in hard way myself ... I was dealing with Citi.   

Since I hear so many of our members CL has been decreased, now, I am keeping my eyes on my three Chase ccs.  

[Itsmeagain]

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@wmarat wrote:

 I charge $6.00 monthly on their card, get monthly paper statement and ask for 2 replacement cards every 3 months.

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+1

Poetic justice . . . .

[austinguy907]

And the saga continues!  So this morning I got a call from Chase corporate.  They received the BBB complaint and were calling to follow up. I spoke w/ Aisha McDonald w/ Chase 888-622-7547 x 6813 about the situation and she will review the account to see if the limit can be reinstated w/o the additional information or additional credit inquiry.  I advised her for the situation we're seeing on here with multiple people affected by their "glitch" knocking everyone down to $500 CL.  So, if you want your limit back file a complaint to get noticed instead of calling their call centers where you won't get very far.

[Anonymous]

Navy Federal Credit Union still gives out high credit limits for decent credit scores where Chase and Citi would give you a toy card.

CREDIT UNIONS ARE PROHIBITED BY FEDERAL LAW FROM CHARGING > 18% INTEREST ON ANY TYPE OF LOAN.

[Anonymous]

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@Anonymous wrote:

Navy Federal Credit Union still gives out high credit limits for decent credit scores where Chase and Citi would give you a toy card.

CREDIT UNIONS ARE PROHIBITED BY FEDERAL LAW FROM CHARGING > 18% INTEREST ON ANY TYPE OF LOAN.

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Hi, Philly.  I count Navy Federal as a 'closed program' credit union -- if not everybody can join or have an in to join, I can't mention them.  Kind of like when everybody used to praise Credit Secure.  There were no ways to get that service except through having an American Express, and not everybody can join American Express.   Navy Federal does not have an 'in' so that anybody with American citizenship can join in the same way that USAA now and Patelco always did.   It's a 'birthright and clearance' credit union.   So yeah, I'm happy Navy Federal offers great rates.  I guess the reason why they're able to do so is because they are a closed credit union (what is the actual term for a credit union which a very restricted membership?)   Is it very hard to enter Navy Federal and receive a credit card or installment loan if one is sub 600?  or is it easy, once one passes the eligibility standards?

Speaking of American citizenship, does myfico have enough members who are not American citizens to warrant credit advice for those who are visiting in the US long term?

What credit unions out there with more liberal eligibility requirements, also have great rates?

http://www.navyfederal.org/about/membership_eligible.html

Eligibility Checklist

Navy Federal's field of membership is determined by the National Credit Union Administration. If you are in any of these categories, you are eligible to join:

• All Department of Defense (DoD) uniformed personnel—Army, Marine Corps, Navy and Air Force, retirees and annuitants
• All Department of Defense Reservists—Army, Marine Corps, Navy and Air Force retirees and annuitants
• All Army and Air National Guard Personnel—civilian employees, retirees and annuitants
• All DoD Officer Candidate programs: Midshipmen and cadets at the United States Naval Academy, United States Military Academy, United States Air Force Academy, United States Coast Guard Academy and the United States Merchant Marine Academy; Other Officer Programs
• U.S. Government employees assigned to DoD installations (including Coast Guard)
• All DoD civilian employees - including retirees and annuitants
• DoD contractors assigned to U.S. Government installations
• Family Members, including grandparents, parents, spouses, siblings, grandchildren, children (including adopted and stepchildren) and household members

Once your family members have joined, they can extend the membership opportunity to their family members, too.

• Questions? Read our FAQs.
• Eligibility Wizard, use to determine your membership
• Join Navy Federal now

[sekada]

Reposting from elsewhere on the board, and editing to add, does the CL decrease violate any laws?  They haven't changed my interest rate, it stinks as it is. 

So with my bonus and tax return in early March, I paid off the entire almost $4k balance on my Chase card, plus another smaller card.  I've always paid more (sometimes just slightly more) than the minimums, I think I was late once by a few days a couple of years ago, but my account has always been in good standing.  My credit score has gone UP 82 points since the beginning of the year!!  (Thanks in great part to paying off those debts).  I do have a collection for $100 that went on there at some point (I just discovered it recently) for a medical bill, and I'm in the process of working that out now.

Anyway, as of March 26, Chase sent my statement with the usual credit limit of $4k.  This morning I put a $400 charge on that card for a car repair -- just for convenience --, and this afternoon I logged onto Chase to pay off that amount.  BEHOLD!! My credit limit has been slashed to $2200.   What gives?? I don't recall they gave me any notice, either, and I'm good about reading that stuff.