As far as I know they can't change the terms without your agreement, I believe you have the option to reject the change the terms and close the account. If you're not planning on charging anything else on the card, call them and tell them you don't accept the changes and that you want to close your account, your transfer should stay at the original rate.

Aaaand the Financial Apocalypse strikes again. Really, Chase must be desperate to get rid of business or something.

What are you doing working for Chase, Barnabas Collins?

If you credit is good enough, can you not get a new card and balance transfer the loan away from chase?

I sense some class-action lawyers salivating.
I'm sure the congresspeople the bankers spoke with will also be interested in this.

@Corporate_guy: Chase charged a 3% fee to transfer these funds in. If its only been a couple of months that can have a huge impact on the true cost of the financing.

Wow, that's pretty funny. I was just thinking about transferring a balance through Chase....this help a lot!

This being a materially adverse change, can't you decline to accept it somehow? I've seen people talk about this with credit cards where you contact the credit card company and refuse to accept the change. They don't let you actually use the card anymore, and you pay off your balance under the old terms until it's paid off and then the card is closed. What about something like that?

@lawnmowerdeth:

I'm sure congress will allow this. They haven;t cared about you or me in Washington for a very long time now.

Chase does not offer an option to keep the account and pay it off at the agreed to terms. The options they offer are: - accept the higher minimum payment and 10 fee - accept a higher interest rate - pay off and close the account

In my case, the minimum went from 2 to 5%.

At least they can get credit from chase. We applied and were turned down flat for not having enough of a credit file. Fico score is around 760. file is nearly 8 years old with about 15 different accounts. one inquiry. No debt on it whatsoever. Of course why take a risk when the government fives you billions of dollars with no accountability.

Chase added a $10 monthly transaction fee to my account as well. I checked my statement online yesterday, noticed the new charge and immediately called Chase Credit Cards. I was informed that a letter was sent out in November informing me of the change and options. Both the rep and account supervisor told me there was nothing they can do. I requested another copy of the letter sent to my address. Afterwards, I sent an email to Gerald A. Smith, CEO Credit Card Services expressing my displeasure with what Chase is doing.

Fortunately for me, my balance is fairly small and I will be able to pay it off in a couple of months. But for those who carry a large balance or are on a fixed income, this could hurt.

How much money did Chase bank receive from taxpayers again?

While you certainly can close your account with Chase, you cannot guarantee they will retain the original terms, per the US Office of the Comptroller of the Currency.

article here: [www.nakedcapitalism.com]

Chase hates me. I have a Starbucks branded card from them and pay my balance in full each month

I'm beginning to understand the Great Depression's deep-seated loathing towards bankers came from.

@howie_in_az: Actually there were a few banks, including Chase who were asked by the gov't to take the money, even if they didn't need it.

The gov't didn't want only the "bad banks" to take the money as they thought this would cause a run on them

We'll see if this lasts. Citi has several balance transfer options
now on a card I've paid off including a 5% until paid off option
(unless they pull something like this), and I plan on moving the
balance and closing the card. I doubt it will ding my credit too
badly. I was paying it off anyway and planned to, so the increase in
the minimum payment would have been annoying but not worth closing the
card. But I'm not going to pay $120/year. I woudn't even if they
didn't up the minimum.

But others are probably harder if they can't transfer. If you were
doing a $100 per month and it just went up to $250, that's $150 you
won't have each month. That is why they were bailed out - to strangle
those who had loans?

There are other low or zero introductory balance cards with no fees,
and if worse comes to worse I'll just move everything to my credit
union since I'd rather pay the interest to them even if it is more
than to the plastic loan sharks.

This was one of those "15 day" notice things they mailed out at the
end of the year (I'm out of town and get my mail forwarded so I don't
have it yet unless it is "lost").

That is the problem with doing restrictions "starting July 2010". All
the companies will just pull something like this by May 2010.

When your ToS change, call them and say "I don't accept". I did this with Citi and my card will remain good, at the old terms until the expiration date on the card (5/2011). I'm saving 8% interest by not accepting the new terms.

What can we do about this? Seriously? The $10/month fee was not part of the original deal. What are our options for forcing them to go back to the original terms of the balance transfer? And taking my business elsewhere isn't an option, or else I wouldn't have made a large balance transfer to Chase to begin with!

@oneliketadow: That only works if the bank allows you to opt out. They are not required to, and Chase is apparently not giving that as an option.

Same here, except mine's an Amazon card. Between my husband and me, we have six cards with various banks, all of which we pay in full each month. All carry some sort of rebate or points program that we work to the max. I'm waiting for the axe to fall. Sooner or later, they'll figure some way to shaft us for being "deadbeats." Like huge annual fees or something.

Has anyone tried contacting the execs?

[consumerist.com]

@Trai_Dep:

And debt...

How on Gods green earth do credit card companies get away with creating new fees everyday and getting away with it unless enough people complain (Congress/Consumers).
It seems like airlines are also plaigairizing from the credit card companies playbooks, such as attending seminars titled: Think fee, not free.

Barnabas Collins doesn't work for Chase. He is the poster boy because they both suck.

Chase is by far the absolute worst bank I've ever been involved with. They could care less about you and they don't pretend to care at all.

We are being told by Chase customer service reps that there is no option to cancel the card and pay according to original terms. The only options they will accept are to A) pay the account in full, B) Switch to a higher interest (7.99 for two years subject to increase after that) thus avoiding the fee and increased minimum payment or C) suck it up and accept the revised terms. I sent a certified letter stating that I wish to opt out of the change in terms, wish to cancel my card and pay off my loan according to the original terms. But, I don't know if this will work. I have also contacted my congressmen, the better business bureau, and local news media. I suggest that all affected do the same.

@lawnmowerdeth: Why would there be any action, much less a class action. Chase can change the terms, read the agreement into which one enters when they open the account.

You can reject any change and close the account and keep paying at the old rates, or pay the balance in full, or refinance the balance somewhere else, but there is nothing improper in what they are doing. Inadviseable- perhaps, unkind- perhaps, just not a nice thing to do - certainly. However they are not making money on these accounts and that is what they are chartered to do so changing the terms is indeed in their long term best interest.

@feckingmorons: I am a victim of this new policy, and according to the notice I was sent, the only way to opt out is to close your account and pay off the entire balance immediately. I've had plenty of accounts jacked up to obnoxious rates before, and like you say, you just close your account and pay it off on the old terms. This is the first time I've seen where they've chained terms with no option to pay off over time on the old terms.

I kept the account open because even with the fee, I'd be better served paying off higher accounts, but I am hoping the lawyers get me some of the money I pay them back.

@concordia: I was wondering that myself. Really, it seems more like an Angelique thing to do.

what about Wamu customers?

@D148lo: I just got a mailer in today that was informing me that chase now owns my wamu card...I thumbed thru the legalese and noted that they arbitrarily raised my APR by almost 2%. Which isn't an issue, but sometimes I'll carry a balance for a month or two...bastards.

*sigh* gonna have to find someone else who wants my money I guess.

@feckingmorons:

"You can reject any change and close the account and keep paying at the old rates"

This is the whole issue - you CAN'T do this. They aren't offering you the option to keep paying on the old terms.

Your choices are:
1. agree to the fee and the much higher minimum payment
2. accept a much higher rate
3. pay off the balance immediately

@NightSteel:

They're not offering that option. Their position is: our card agreement lets us change anything at any time. In theory, they claim they could change the rate to 200%, and say "pay it off in 30 days, or the new rate applies."

The banks have the power to 'tax' one at will. This is an example of 'taxation without representation.' I wonder if Chase per chance has any tea hanging around.

Wait til the new credit card regulations that were just approved by federal reserve go into effect. Credit Card companies will have to think of all new ways to trick their customers and we'll all be seeing our terms changing for the worse.

@JustThatGuy3: The changes that are being applied only apply to the Minimum Payment due on the account and the Monthly Service Charge. The APR on the account is not affected in the least. It is only those who do not want to have the higher Minimum Payment on the account that see a change to the amount of the APR assessed to the account. People who are complaining about the changes to the terms should review the card member agreement that Chase sends out to them. It is all covered in there as to the changes that can be implemented with prior notice per the OCC. Which Chase has followed through on, granted in one of the busiest times of the year when most people do not read the mail they receive until after the fact. And you are correct they are not offering people the option to close their account and keep the old terms. They don't hafta. They are a bank and they need to make a profit. People who have had long term low fixed APR's can continue to have them if they want the fee and the higher minimum payment. Things like this will start happening more often with the regulations the government wants to place on credit card companies. How can it not? And on a side note although it is true that Chase was given money by the government, it is only because they were told they had to take it so the bad banks wouldn't stand out like a sore thumb.

@chiieddy: I do the same, with a Chase Amazon card, which I only use for Amazon purchases. That's the one card I will never let run up a balance, and the $25 gift rewards come frequently enough to make it feel worth it. (Got one yesterday, in fact.)

But first Citi betrayed me by jacking up my rates, then this week Discover did the same thing. Now I'm frantically paying off those balances and have resolved never to use either card again. I won't close the accounts because they represent a huge portion of my available credit. The only card I can rely on now is the Visa issued by my credit union.

I really wish that new credit card legislation had come a lot sooner.

@concordia: Whatever his name is, he's kinda creeping me out... he's just there... grinning menacingly from the monitor...

ACK! Stop staring at me!

Watch for similar action from other credit card companies that are administered by Chase like FirstUSA. I get basically the same mailings from both cards.

I also noticed in their latest balance transfer offer that they have removed the maximum cap on the 3% balance transfer fee. Back in the day it was capped at about $75, then $150-200. Now there's no cap.

Not that I'm going to transfer anything now that they are putting hidden monthly fees on the transfers.

Obviously their purpose here is to jack up that low, low 2.9% interest rate that you are paying at the minimum monthly payment. Considering that they can and are getting free money from the government, it's not like they aren't profiting off of any loan they make that's being repaid.

I think we are going to see more of this, as we make our way e-e-e-v-e-r so s-l-o-o-o-o-o-wly to the point in time where the debtor's bill of rights takes effect. This was predictable (and, in fact, was predicted).

Maybe someone needs to start a pool on who does it next and when.

@tz:

Don't cancel the card - it could negatively affect your credit, and it won't be costing you (once the balance is paid off).

I think the $10/mo fee applies even if I don't have a balance, plus even if I "pay it off" I think they use double cycle billing, so I may have $2 in charges next month - plus the $10 and that will continue.

If I remember right, as long as the card is "Canceled at consumer's request" it doesn't ding your credit (other than the total credit line may shrink so you might, for example, go from 40% to 60% usage of the open lines). This information should be in the credit report (and is another reason to review them).

"The right way to close a credit card account" (and why you might not want to or want to wait):

[www.bankrate.com]

And from get rich slowly (which clarifies some things in the bankrate story)

[www.getrichslowly.org]

I won't go into details, but I'm one of the affected here. We felt 4.99% in this rate environment was fair, but Chase still wanted 7.99% or $10 a month and 5% minimum.

The $120 a year is actually quite a bit higher, as the $10 monthly charge is assessed at a higher rate (8.99% in my case) and was already up to $10.02 when my statement arrived. Since the order of payments means you pay off your promo rate FIRST, the "fee" continues to compound continuously in the background.

Really, really f*cked up. I've never been treated like this by a card I've had for more than a decade, with NO defaults.

@feckingmorons: Actually, the OP said that he transferred a $20,000 balance... and you think that the credit card companies aren't making money off of that?!? Not only that, but from the sounds of it, he is also paying only the minimum payment, or close to that, which is *almost* pure profit for the credit card companies. Still think their not making money?