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Wamu/Chase Change in Terms

Senior Contributor

Wamu/Chase Change in Terms

I have a former WAMU PC'd to Freedom Plus.  I hadn't read the Change in Terms I received last statement. 

 

New terms effective August 1, 2009:

- Cash Advance or BT:  5% transaction fee ($10 minimum)

 

- Minimum Finance Charge:  $1.50

 

- Chase may stop or limit any credit or cash transaction

 

- Chase has the right to suspend the account at any time, at their sole discretion

 

- Chase may close the account, or any feature of the account, at any time, at their sole discretion

 

- To the extent allowed by law, Chase may require the outstanding balance to be paid immediately, or at any time, after your account is closed.

 

Not that I would ever carry a balance at 29.99%, but for somebody who was, if they could actually require the immediate full payment, that would be a problem for some.

 

 

Message Edited by txjohn on 08-03-2009 09:57 AM

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09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
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Senior Contributor

Re: Wamu/Chase Change in Terms


txjohn wrote:

I have a former WAMU PC'd to Freedom Plus.  I hadn't read the Change in Terms I received last statement. 

 

New terms effective August 1, 2009:

- Cash Advance or BT:  5% transaction fee ($10 minimum)

 

- Minimum Finance Charge:  $1.50

 

- Chase may stop or limit any credit or cash transaction

 

- Chase has the right to suspend the account at any time, at their sole discretion

 

- Chase may close the account, or any feature of the account, at any time, at their sole discretion

 

- To the extent allowed by law, Chase may require the outstanding balance to be paid immediately, or at any time, after your account is closed.

 

Not that I would ever carry a balance at 29.99%, but for somebody who was, if they could actually require the immediate full payment, that would be a problem for some.


I believe everyone left standing received these changes. 

 

Two points on this:

 

1) Credit card companies have always been able to demand immediate repayment when a cardholder has defaulted on his account. Nothing new here, and 

 

1) To the extent allowed by law: The Credit CARD Act of 2009 states the following:

 
‘‘(4) RULE OF CONSTRUCTION.—Closure or cancellation of

an account by the obligor shall not constitute a default under

an existing cardholder agreement, and shall not trigger an

obligation to immediately repay the obligation in full or through

a method that is less beneficial to the obligor than one of

the methods described in section 171(c)(2), or the imposition

of any other penalty or fee.’’.

 

This section is one of those that becomes effective 90 days following enactment.

So, if you close your account to avoid an RJ the issuer cannot accelerate repayment!

 

Not so sinister after all. There really isn't a troll under every bridge.

Message Edited by creditwherecreditisdue on 08-03-2009 01:39 PM
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