"You have the flexibility to skip a payment"

[Anonymous]

I checked my Chase Freedom card statement online today and found a section entitled "Important News." Apparently, Chase has given me "the flexibility to skip a payment. You must pay past due and overlimit balances immediately. However, the remaining minimum payment for this month has been reduced to $0. Finance charges will continue to accrue. To reduce your balance, feel free to make a payment." Sure enough, the summary at the top of the statement has a minimum due of $0 by 5/23/2009. Sounds like an interesting new tactic to try to make some money. Has anyone else seen this lately?

[Anonymous]

"It's a trap!"

Seriously.

[Anonymous]

---

@Anonymous wrote:

"It's a trap!"

Seriously.

---

I wouldn't put it past them to ding your credit report with a late either!  Don't fall for that. Not worth it!

[score_building]

hogwash. 

not worth the 'unintended consequences'.  skip it.

[GregB]

I have seen these regularly on Chase and sometimes on another account or perhaps two. It appeared to be a situation where they are just making the minimum payment to be $0 for that month. Interest would accrue just as always when you carry a balance.

Paying the normal minimum would be foolish.

Paying the $0 one month minimum would just be more foolish.

I think they are just looking to make more interest on some customers. Perhaps also finding out who is desperate enough to have a tough time paying the normal minimum. This might be opening the door further to a CLD but then I would think anyone paying the minimum might already be headed that direction.

[Anonymous]

Yea, it struck me as just another ploy by the CCC's to make some money off of people having a tough time in this economy. I always PIF so I never intended to skip my payment, but it struck me as odd so I thought I'd share. Other than a 2% APR increase on another card, I haven't suffered any blatant AA yet - just strange encounters like this one. Hopefully that trend will continue...

[Anonymous]

I got this from Chase this month on my platinum rewards card yesterday, and I also thought it was odd. First time I ever saw something like this from them. Back in the 90's, MBNA used to do this all the time. I intend to pif on the Chase card this month, and will not be taking them up on "skipping" a payment so they can make some $$ off me with interest charges. I feel it's a trap.

[Anonymous]

Banks have been doing this to drive up interest income since Moses was a puppy. I used to see this on my MBNA statements back in the middle & late 90s. The best response is simply to PIF.

[UpNUp]

You will pay dearly for that privilege.

I did that once 40 years ago when I was a senior in high school.

Around Christmas time B of A said I could skip my $61.00 car payment so I would have more money for Chistmas. Being young and foolish and without learning the details I took them up on it.  Boy, did I pay!

I can't remember the details but I clearly remember being PO'd. I quess I just thought they were kind enough to give me one month free ride. Foooolish!

Don't do it! Nothing in life is free.

[Anonymous]

Have you previously paid more than minimums?  If so, many CCC's will show a "Payment Due:  $0" and are more than willing to apply your previous "over payment" toward the current payment.  This would allow them to charge more of your previous payment toward accrued interest (profit) and less to interest.

However, paying minimums is never a good idea and taking these $0 minimums is even worse.  While you most likely would not incur a late on your CR, you would accrue and pay more in interest AND you potentially face AA when the bank decides to take your $0 Due payment as a sign of financial distress and rate jack, CLD, etc.

PIF or at the very minimum pay on an aggressive schedule of paying it off.