CHASE Credit Card--ONE late payment and they've raised our interest to 29%. 29%!!!!!!!!!!

GRRRRRRRRRRRRRRRRR!! Dangit! We have been working really hard to pay off our credit cards...skipping doing fun stuff, eating cheap food (mmmmmm...pasta with olive oil...again! (sarcasm) and we've slowly chipped away at some of the balances. We've been good boys and except for a screw up two years ago when we set up our auto pay, we haven't paid a single credit card bill late.

Well, despite auto pay, something went wrong this month and our CHASE card didn't get paid on time. One payment in many years late. They charged us $25 and raised our interest rate to 29%.

29%!!!!! I've had it...this summer we are having one hell of a yard sale and I don't care if I have to sell of everything extra I own...I intend to pay off our cards for good. $&%#@&^ vultures.

:0( Need I say I am pretty danged pissed off!!!!! :nuke:

Their documents say "may". You may have to speak to several people. We were in our local branch the other day and as George Thoroughgood would say: "Lawd, she was lovey-dovey!"

They need to make friends with their customers and they fucking well know it.

we've been good customers and paid on time. They should treat us better than that!

and kept on it, yes she talked to several people, but in the end they backed off.

We've had a bad year because of how the economy has affected my husband's profession and I've had medical bills and we've got ours run up again. It's like 1 step forward and 2 steps back. I live in fear of that 29% rate.

ours were run up with medical bills too. This card is our biggest card--almost 100% medical bills.

It was not your fault you were late, they will fix it for you if you talk to somebody.

You're right, they are vultures, but they do sometimes forgive one late payment. Call them, and ask to speak with a supervisor if the person you talk to won't help you. 29% is outrageous. (In fact, these days 5% would be outrageous.)

Not saying that it's not a good idea to have a credit card or two around for emergencies but I am curious as to how much of the stuff you are willing to sell off to get out from under the Chase jackboot on your throat was purchased using the card. I'm not judging. Most of us have fallen into the same trap but it is a form of slavery, or at least indentured servitude. Once you are on the hook, you have no choice but to keep the cash flowing to keep paying the bastards and, lets face it, most folks never get them paid off so, in essence, you become their slave.

You have to keep using that Chase credit card at all times, or else they'll cancel your account without a moments notice!

Happened to me some weeks ago when they canceled my card and gave me a new card with a smaller credit line and a high interest rate. I almost became furious, but then it reminded me why I stopped using that evil company's card in the first place.

Both Chase.

If they cancel them so be it... I don't need them that badly. So far though, they just keep trying to convince me to transfer the balance on my other cards to theirs. Over and Over and Over again.

was about a year ago, and I guess they thought I was no longer a profit generator or something, so they cut me loose.

Good, screw them.

Up until I retired in October, my insurance cost me over $22,000.00 per year. I've got over five grand in co pays for my shoulder and am about to have a knee replacment in a few weeks. Something is seriously wrong when my medical insurance = my house payment and I still have to buy them a car to get treated.

We once were able to deduct interest payments from federal income tax, before the middle class had to shoulder the tax burden for the rich and their corporations.

Ah, democracy...

http://dailybail.com/home/peasants-storm-the-castle-hundreds-of-activists-descend-on-j.html

This took place here in Ohio at the Polaris facility.

Pretty depressing inside.

I just got a letter from them this past Friday that my BP Visa (Chase) Card Credit Limit was reduced from $4600-$2900 because they just conducted a "review" and determined that my combined total revolving debt is getting too high. A couple of years ago, American Express did the same. No missed/late payments. How can they do this??? It should be criminal I say!!!! At least, a little warning might've been nice!
:mad: :nuke:

Get a CU credit card for emergencies. Pay off balances and don't roll over debt.

Paid them off and never looked back.

It's the best way to manage your finances - reduce your obligations.

We have a savings account. If the money isn't there, we can't buy whatever it is we want.

I had a friend who borrowed against her 401K to pay off her debt. I don't understand why more people don't do that.

Oh and when she paid off a credit card, they immediately raised her interest rate. So she cut up the card and mailed it to the creditor.

that if more people start taking it and close their bank credit card accounts, banks will get their lackeys in Congress to prevent 401k loans for everything, including dire life and death circumstances. There are a few good banks out there, but most are greedy bastard institutions whose main reason for existing is to suck consumers and small businesses dry.

Authorizing my SO to use them in what I thought would be a responsible manner was Mistake number two. :banghead:

We're currently working on finding a way to get rid of credit cards once and for all and I can't wait until the day we get there.

Get a fixed limit card through a reputable Credit Union to deal with dire emergencies, use cash for everything else. The interest rate on the 401k loan will be tiny compared to your CC rates. Payment terms on the 401k loan can be sized in a way to work with your personal finance situation. The plan only works if you and your wife exercise spending discipline.

We are planning to tap my wife's 401K to finish paying off my car. That will free up some extra money to help with the credit cards. I consider myself to be pretty disciplined when it comes to spending...........

Not only does growth stop for retirement, but if you're terminated you have to repay the loan IN FULL in 60-90 days, else it's an early withdrawal, with a 10% penalty plus regular income taxes. That makes the credit card at 29% potentially cheaper.

It is not unreasonable overall, although whether you are actually a risk is questionable.

The way they figure this, the question is how much unpayable debt will they get stuck with from a thousand cardholders who have your risk profile?

Chargeoffs are still running pretty high.

Credit union credit cards! 6.9%.

I refuse to use credit cards.

turned out it was during the LA riots and a lot of mail got waylaid.

If being nice on the phone doesn't work, ask to have the call escalated. Tell them you are going to hold a press conference about their price-gouging and give them just the kind of publicity they deserve. I'd be willing to bet they will back down since you've never had any other problems with late payments.

If all else fails you might have the option to transfer your balance to a different card with lower interest rates.

They call about once a month. First time was about 6 months ago. I told them I had never had a Chase card and they said yes you took this out in 1999 and charged $1000. Then the account was closed. I said wait a minute, that is 12 years ago, isn't there a stature of limitations on this? They said yes, we can't sue you for the money but we can call and ask you to pay. I laughed.

They also said they would send me something in the mail to fill out to dispute the bill. They never sent it. Now they just call once a month, I don't answer and another month goes by . . .

At this point I'd never WANT a card from them.

and ask for the company's name.

Now, go to the small courts claim, sue their asses to the maximum you can collect (2,000) because it's a violation of the phone law and the fact that there is a statute of limitations on which to collect a debt, you can also sue them for harassment.

Do everything, then once they're served, they're screwed. Because they have NO way to prove that they do have a collection because it is an invalid one.

And I never got any letter.

So I don't answer when they call.

Regardless of whether you took the loan or not, it may be taken in you name with your personal information. When you get credit card applications mailed to you, open then and put every single piece of paper through a paper shredder. Don't throw them in the trash whole. The same goes for requests for donations that often have your name pasted everywhere in the request. Once you have made a donation, destroy all paperwork not needed to return the request with your donation.

This is just a scam outfit - maybe not even working for Chase? - trying to get money out of me. I have a co-worker who gets their calls also. Same number. They claim she owes on a department store credit card - but it's a store that has no locations here.

I can't believe anyone would ever pay them after getting a call. But apparently people do.

saying somebody with our last name but a first name we never heard of owed them money. Our guess is they sent it to a bunch of people with our last name hoping to hit pay dirt. We ignored it, but it was worrying.

(Date)

To Whom It May Concern:

I have been contacted by your company about a debt you allege I owe. I am instructing you not to contact me further in connection with this debt. Under the Fair Debt Collection Practices Act, a federal law, you may not contact me further once I have notified you not to do so.

Sincerely,

(Name)


Per Clark Howard.

route to getting out of debt. It requires discipline. 401k plans allow withdrawals up to $50,000. If you want to pay off the credit card debt, take out a loan against your 401k, pay off the card and close the account at the bank. Get another credit card with a Credit Union that has a good reputation and limit the card maximum to no more than $5,000. The new card will allow you to meet true emergencies like death related expenses. Don't use the card frivolously. The money that you pay back to your 401k gets reinvested as it is paid back. The 401k interest rate is market indexed and is fixed for the life of the loan. With market interest rates at around 1%, a 401k loan rate is unlikely to have an interest rate much higher. I advise everyone that run into problems with credit servicing from banks to use the 401k loan, credit union route to eliminate banks from their lives.

and that now that autopay is in place, there is no earthly reason to jack the rate up that high. Chances are they'll reduce it.

Then pay those weasels off. If you need the security blanket of a credit card, keep it someplace you can access only with a stepladder and flashlight.

I've now been free of them for 20 years. An ATM card will work just as well.

I paid mine off over 20 years ago. I didn't rip them up but I pay them off every month.

I have a lot less stress that way.

flow and avoiding bank loans is of tantamount importance to survival.

I have my card through Citibank and I believe 29% is the interest for late payment with them, too.

It is what it is. I try not to run up a huge tab every month and I pay the card off every month. I realize that not everyone can do that, but at least the minimum payment should be made on time, which eliminates the problem altogether.

It's no secret that banks and other financial institutions have this kind of penalty -- so I don't get the outrage. Just pay the bill on time.

I AM IN CALIFORNIA AND HAVE BEEN REASONABLY HAPPY WITH BANK OF AMERICA AND VISA FOR DECADES.

WISH THE MANHATTAN SLIME WOULD QUIT SENDING STUFF

Identity theft fraudsters look for the type of mailings that Chases and other banks send out to people that they desire as customers.

on their dime. I do it all the time. Finally, the credit card offers stopped coming.

I forget the details, but we did it years ago and haven't gotten any since.

You get points that earn plane tickets etc. I got a great deal from my landlord that let's me pay Manhattan rents on my Amex. That accumulates a shitload of points.

Then she shopped around for a loan.

profile allows car purchase, AMEX will contact you to confirm identity, but there will be no issue with the purchase.

regular credit cards where you carry a balance some years ago.

The procedures get run without you even knowing about it in most cases. I have an AMEX card and that is my one card for business expenses. I had a situation where I used the card in a foreign country several years back and had unauthorized charges made against the card. When I saw the charges, I called AMEX. The company credited my account and went after the fraudsters. My experience with using the card for business expenses has been nothing but good.

Mainly to help with cash flow. Well, I was 2 days late paying the bill (probably slipped my mind -- I am running a small business after all) and they jacked my rate up to 27.24%. So Amex is no better.

AMEX has an entire line of REVOLVING debt credit cards that are paid monthly in small amounts like any other banks credit cards. (AMEX BLUE, for example)

Only SOME AMEX cards must be paid in full....

now offer you a new credit account with them for the same interest rate you HAD and transfer your balance along with paying the $25 fee since they screwed you over.

And my money stays here in the community. Banks suck money out of communities.

What others have suggested here, calling customer service, should result in them waiving the fee and offering you a lower rate. I used to be a customer service supervisor at a major bank, and I routinely waived these fees at least as a one-time courtesy, and always if it was a bank error.

I quit the bank years ago because I could not live with how customers were treated, I was seen as far too generous and occasionally got myself in trouble because I actually cared.

The value of money is low now, due to low interest savings accounts. So why is the value of money so high when it's with the credit card companies?

preventing financial reform that will index credit card rates to the cost of money for banks. Republicans have largely been right in the pocket of banks and CC companies protecting their ability to rip off consumers. There are some democrats in their pockets too, but democrats have been much better activists for financial reform that helps consumers. Just one more reason why the "there is no difference between the parties" mantra of some on DU is just plain wrong.

With a home loan (mortgage, equity loan, etc) or a car loan, the borrower puts up some collateral should the borrower default on the loan, namely the real estate or car. If the borrower does default, the lender could sell the collateral to recover the outstanding balance of the loan. With a personal loan, student loan, or credit card, there is no collateral so if the borrower does default, the lender might not recover the amount loan. This is inherently more risky so it carries a higher interest rate. The interest rate usually reflects high much risk the lender sees in the loan: both the risk of the borrower not paying it back and the risk that the lender could have done something better with the money loaned.

The savings account in the bank pays such low interest, but in the sense I am loaning my money to the bank, there is not much chance they will lose it.

Because I dumped my credit cards years ago. Interest is money flushed down the toilet.

It's loan sharking.

It will prevent adding more purchases.

Get rid of them.

financial feet.

I had to declare a Chapter 13 bankruptcy because of credit cards. I had three judgments against me and one creditor was garnishing my pay. I finally had no choice but to go into bankruptcy. Because my income exceeded my bills, I had to do a Chapter 13. Finally, my bankruptcy was discharged because all my creditors were paid off. And I have sworn off credit cards forever. If I cannot afford to buy something for cash, I just don't buy it until I have enough cash saved up.

as someone suggested earlier, give them a call. Be prepared with what you want to say and have it on paper in front of you.

1) tell them you've been a timely customer and have a record of paying on time

2) stay calm and polite (this is important) but be firm and do not take no for an answer - everyone has a supervisor so keep asking for one when you do not get satisfaction. I talked to 3 supervisors in one phone call when I had to call about my car's transmission and after 2 months they finally paid $2000 of the $3000.

3) know what you want before you call - a lower interest rate. What percent? Do you want to ask for the $25 penalty credited to your account? I'd ask - the worst they can say is "no."

4) If you don't get anywhere call back another day. Just be persistent. If you're going to call their bluff with threateneing to leave be prepared to do so. Have somewhere to go. The local credit union is an excellent idea.

5) document everything and take names and be sure to note dates

Good luck.

Retroactive rate increases.

Issuers can't raise rates on an existing balance unless a promotional rate expired, the variable indexed rate increased or you paid late by 60 days or more. No longer will they be able to punish borrowers for late payments on unrelated accounts under the practice of universal default or due to "anytime, any reason" clauses.

If the cardholder does trigger the default rate because of a 60-day delinquency, the bank must restore the lower rate once the cardholder demonstrates six months of consecutive on-time payments. This provision takes effect in August 2009.

http://www.bankrate.com/finance/credit-cards/8-major-benefits-of-new-credit-card-law-1.aspx#ixzz1N7QlV3jl

I sent an e-mail to them explaining what happened. (They were constantly changing the due-date) I told them a copy of the e-mail was being sent to my Congressman, Barney Frank. I got instant results, re-instating interest rate and waving the fee. Also got a follow-up e-mail from Frank's office asking if the problem was resolved.

Don't know who your congress person is but it's worth a try if a phone call doesn't work.

Snoutport, this wasn't your fault.

Call them. There is no way that you can affect your autopay (other than canceling it). Either Chase or the bank is at fault here, not you. (I nominate Chase....)

Call them and have them credit the $25 back to you and lower the rate back down.

I've had similar happen (it was a "mistake") and managed to talk to someone on the phone who took care of it quickly. I swear they do this just to see who won't notice it or call about it.

Good luck!


horseshoecrab :hi:

I pay cash for everything and I don't give one iota about "credit."

Who cares?

I recently paid them totally and completely off and they still sent me a motherfuckin' bill for $2.39. Now that is a basically neglible amount of money, but it was just the principal of the thing that pissed me off. I am cancelling them on Tuesday. They always say that "this call may be recorded..." so I am going to demand that they record ME cancelling rather than THEM dropping me.
In case you can't tell, I hate that company.

If there's an abandoned or sort-of abandoned building, it becomes a Chase Bank. Hell I was talking to a store clerk one time who worked at a Men's Warehouse and he was telling me that Chase bought the property their store was on and raised the rents so high that the store couldn't afford to stay there, so guess what popped up in its place? A Chase Bank. And this isn't the first time I've heard of this happening either. :grr:

...who will take to social media at your request, if they do not drop this increase. 171,000 activists using Twitter, Facebook, etc. to condemn Chase for this insult to a longtime customer.

If you yourself use Twitter, go to the customer service chat on Tuesday night at #custserv -- many top-level business people frequent that chat. You can really get a message out, there. I understand they now have a forum, too.

You could tell the manager that Michael Moore has a new investigative movie in the works and that you will be reporting this incident to him. Be bold. Ask what day would be best for the cameras to come and interview the branch manager.

Go after them!

The law changed. They shouldn't be able to do this for a late payment unless the payment hasn't been made for two months.

Or have they notified you that new charges will be billed at a 29% rate, but your current balance will remain at the old rate? You are allowed to opt out of changes they make unless you have not paid for 60 days, but of that means you wouldn't be able to charge on the account any more.

I'd call them - a bank mess up happens, and it is not your fault and as long as you can make that case, I think you can get this reversed.

Issuers can't raise rates on an existing balance unless a promotional rate expired, the variable indexed rate increased or you paid late by 60 days or more. No longer will they be able to punish borrowers for late payments on unrelated accounts under the practice of universal default or due to "anytime, any reason" clauses.

If the cardholder does trigger the default rate because of a 60-day delinquency, the bank must restore the lower rate once the cardholder demonstrates six months of consecutive on-time payments. This provision takes effect in August 2009

http://www.bankrate.com/finance/credit-cards/8-major-benefits-of-new-credit-card-law-1.aspx

Obviously it wasn't your fault - *couldn't* be your fault. They know or should know you are on autopay - they should have investigated first, not raised the rate and left it to you to complain. Oh wait - I'm being logical.....

I had never been late, never missed a payment and always paid way more than the minimum.
My balance was about 25% of the limit on both cards.
At the time my credit union offered me a card with 0% for a year on balance transfers. Wen I got it I immediately transferred the balances from both cards and then canceled. When they asked why I was canceling I told them I could get a better interest rate from my neighborhood loan shark.
Paid the balances off on the new card in 8 months and never looked back.

You weren't pissed off when you spent their money when you couldn't afford it. Why are you only pissed when they expect you to honor the terms of the contract you signed?

a new one and do a balance transfer to low rate card and then continue paying off

did that to me years ago and then once i moved everything, they offered new cards for lower rates - don't stay in handcuffs to them - it sucks but there are ways out of it - takes some finagling but it is worth get out of their grasp and then write a note in big letters reminding yourself they are all thefts and mafia and willing to destroy you for their profit - it is legalized loan sharks

debit card but no credit card. Generally when we want to purchase something that we don't really want to pay using savings I borrow the money from the bank and use our savings as collateral. The last time I did that between the 2 percent interest they charged us on the loan and the 3 percent our saving account payed on that same money I made money on the deal. In the end we had our product and still had the savings account balance. Talk to your banker he can be your best friend, I promise you that.
I've been doing this for years now and my banker says more people should do the same thing but very few do, as they can loan you the money you want cheap when they already have possession of the collateral.

Including car loans!

You can do it with savings accounts (they may put a hold on the account) and CDs. You can't use IRA or other retirement accounts as collateral, though.

But it will pay you back hugely over your lifetime. Doing this rather than using credit cards can have a lot to do with whether you reach retirement with savings or not.

but as you make each months payment that amount is removed from the hold. Its a win/win for everyone involved. The bank makes a little money and you save a lot. Plus when you purchase whatever it is most times you can get a better price because you're paying cash for all they know.