topic Re: Chase Penalty APR in Credit Cards

Chase Penalty APR

Anonymous — Fri, 24 Aug 2012 20:54:46 GMT

I got stuck with Chase's penalty APR of 29.99% on my Slate card over a year ago, because I went over my credit limit. I'm carrying a balance of about $2,800/$3,800, so 74%, on the card. But, the balance is from a 0% balance transfer offer I had gotten, so I'm not actually paying any interest on it! Regardless, I'm really annoyed by this card right now.

I've called the number on the card a couple of times, and asked about getting the APR reduced, and every time was told that they review the account every six months to decide whether to reduce the rate, and there's nothing else they can/will do about it.. The last review was 7/30/12, so they won't review it again until January 2013! And they can't even give me any reason why my rate still hasn't been reduced!

I'm kind of stuck, because I've got this 0% balance transfer, so I don't really want to close the card. But 29.99% is insane, just on principal! Plus, I want to PC to Freedom, but they're telling me I'm not eligible, although they can't tell me why. I'm guessing maybe because of the penalty APR flag.

Would calling a back door number possibly help for this? I feel like they're never going to get rid of this penalty APR.

Re: Chase Penalty APR

slarano — Fri, 24 Aug 2012 20:59:11 GMT

I have two Chase cards in their penalty APR, been there since ~2009. No movement since...

Re: Chase Penalty APR

trumpet-205 — Fri, 24 Aug 2012 21:02:34 GMT

Are you paying on time for 6 consecutive months?

Re: Chase Penalty APR

jsucool76 — Fri, 24 Aug 2012 21:03:29 GMT

I was under the impression that under the new CARD act if you made on time payments for 6 months that your rate has to be reduced back down. I guess I was wrong D:

Re: Chase Penalty APR

Anonymous — Fri, 24 Aug 2012 21:12:42 GMT

My payments have all been on time. The CARD acts requires them to reduce the APR after six consecutive on-time payments, but only for purchases made prior to the penalty rate. They can keep the penalty rate in place for new purchases indefinitely. So, I'm not actually paying interest, as my only balance is from the 0% transfer. But if I bought something tomorrow and didn't pay it in full immediately, then I'd be paying 29.99% on that balance. Very, very annoying.

Re: Chase Penalty APR

trumpet-205 — Fri, 24 Aug 2012 21:30:52 GMT

@Anonymous wrote:
My payments have all been on time. The CARD acts requires them to reduce the APR after six consecutive on-time payments, but only for purchases made prior to the penalty rate. They can keep the penalty rate in place for new purchases indefinitely. So, I'm not actually paying interest, as my only balance is from the 0% transfer. But if I bought something tomorrow and didn't pay it in full immediately, then I'd be paying 29.99% on that balance. Very, very annoying.

Correct. You could file a complaint at CFPB.

Re: Chase Penalty APR

Anonymous — Fri, 24 Aug 2012 21:38:28 GMT

But they're in compliance with the CARD act, so I don't think I'd have any valid basis for a complaint? I'm annoyed they won't reduce the rate, but they're not required to. That's why I was wondering if a backdoor credit analyst might be able to help me with this.

Re: Chase Penalty APR

DeadSpider — Fri, 24 Aug 2012 21:40:20 GMT

Yuuuuup im stuck at 29.99. I had WAMU card that switched to Chase and my APR went from around 13 to 29.99.

I just use it as debit card and PIF.

Re: Chase Penalty APR

jamesdwi — Fri, 24 Aug 2012 21:44:55 GMT

Pay it down, when its nearly done call the backdoor number or perhaps retentension team, if they don't reduce it, introduce the card to the shredder and close it. Wait 6 months and re-app when they have a $200 for spending X dollar deal. Also app for another card that takes its place in the mean time perhaps something from citi

Re: Chase Penalty APR

DeadSpider — Fri, 24 Aug 2012 21:47:23 GMT

Last time i called was told will review your file in 6 months bla bla bla.

Re: Chase Penalty APR

slarano — Sun, 26 Aug 2012 04:16:31 GMT

I paid on time for close to three years after the penalty APR went into effect, still no rate decrease. Have had a 0 balance on the two Chase cards for almost a year now though so Chase gets no more money from me.

Re: Chase Penalty APR

jonmartin — Sun, 26 Aug 2012 04:42:43 GMT

I would personally close it. Whats the poing of having a "Prime" card with a Sub-Prime rate..

Re: Chase Penalty APR

Anonymous — Sun, 26 Aug 2012 04:54:23 GMT

Yeah, the stupid card is totally unusable given that rate. Once the 0% balance transfer is paid off (and believe me, I'm going to milk that one down to the very last moment, just because I can), then I'll close the card and get something better if they still won't reduce the rate.

Re: Chase Penalty APR

slarano — Sun, 26 Aug 2012 13:00:48 GMT

Does it have an AF? If it doesn't, has a high limit and a long history, just sock drawer it.

Re: Chase Penalty APR

DaveSignal — Sun, 26 Aug 2012 14:02:46 GMT

@Anonymous wrote:
Yeah, the stupid card is totally unusable given that rate. Once the 0% balance transfer is paid off (and believe me, I'm going to milk that one down to the very last moment, just because I can), then I'll close the card and get something better if they still won't reduce the rate.

Or just close it and then re-apply for the same card to get a decent APR again.

Re: Chase Penalty APR

Anonymous — Sun, 26 Aug 2012 14:37:42 GMT

Nope, no AF, but on principal, I'm not keeping a card with a 30% APR where they refuse to reduce it for no good reason, except that they can. Plus, I already have two cards with Chase though, and I want a Freedom, so I'll just close the stupid Slate and re-apply for the Freedom when the time comes.