Chase Promises To Honor Promotional APR Until Balance Is Paid Off Or They Change Their Mind—Whichever Comes First
Chase doesn't want to honor an old promotion promising to lock in a customer's APR until their balance is paid off, so they're just ignoring the original terms and jacking up interest rates. The bank wants to hike a promised 3.99% rate to either 7.99%, or 5% of the total balance plus a $10 monthly service charge, terms that are dull enough to put you to sleep until you receive the next month's bill. Inside, Credit Slips walks us through how this is legal, along with tips for recapturing the stolen promotional rate.
In great big letters, the advertisement promises, "3.99% 2nd and 3rd checks APR until balance is paid in full." An asterisk next to the "0% APR" promise leads to a very small notice that states "See enclosed insert for more details." In another post, I commented on how these "more details" in a solicitation aimed at lawyers eviscerated the deal that it looked like Bank of America was trying to offer. Does anyone honestly think that these advertisements would put a reasonable person on notice that the price at which they are borrowing is actually very different than the true price? Our reader was outraged at the sharp dealing from a bank that had just received federal taxpayer money, which is a good point. We should expect better from the institutions who are being supported with taxpayer dollars. As someone who tends to focus on the policymaking side of consumer credit, what outrages me are the claims of free marketers that we should get out of the way from fully informed buyers and sellers of credit. It is only the sellers who are fully informed.
Buyers may be relatively uninformed but that doesn't mean they're powerless. They can always beg! Seriously. White-collar professional are finally waking up to what fundraisers and the homeless have known all along: begging works.
And by begging we mean politely asking for Chase to honor the original deal. Send a direct but professional letter explaining that you are an ideal customer who deserves better treatment. And if that doesn't work, kick your complaint to the top by contacting Chase's executive team.
Here Is Your Interest Rate, Except When It Isn't [Credit Slips]
RELATED: Nice Letter Gets Chase To Reinstate Man's Promotional APR
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Comments:
@Crazytree: I'm only asking because I don't know, but does your entire balance become due immediately if you cancel an account?
@supercereal: No. I recently had to do this when Citi upped my interest rate (which was not in one of these deals). They have to give you the right to opt out. Of course that means your account will be closed once the balance is paid, but usually (at least this is what I was told by Citi) they will allow you to reactivate the account once you've paid off the balance so that it doesn't show up as a closed account on your credit report.
Wait for Chase to send you a new offer with those stupid blank balance transfer checks. Transfer balance to new account with lower interest. Laugh at your triumph over Chase.
How about don't maintain a balance?
@johnarlington: I'm pretty sure Consumerist is a hospital for sinners as well as a country club for saints. This would be a pretty stupid site if it was just a bunch of good consumers gloating over how bad stuff never happens to them.
@Eyebrows McGee: A pretty good percentage of the saints love visiting the hospital just to gloat about their good health.
Hmm. Chase sent me a letter saying that because of the economy they were raising my apr to 18.99% over sub prime, which amounts to 22.99%. They gave me the option of canceling my account and keeping my current interest rate. Of course my current interest rate is 27.24%, so I don't know what they're trying to tell me.
@johnarlington: Obvious comment is obvious.
Yes, many people know this. No, not everyone's situation is like yours. I agree though...that mother who maxes out her card to pay for life saving surgery for her kids? That father who needs emergency car work to be able to get to work in order to feed his family? They're definitely stupid for carrying a balance.
Generalizations are fun though.
This is nothing new for chase. Well...the giving notice before changing the rates is.
Chase failed to send me a bill, but failed to sent me an e-statement, and I thought using one of those convenience checks would mean I had no payments until the end date, as opposed to no APR but I had to make monthly payments.
The latter was a mistake on my part, but I never got the bill stating that I had a balance due and I forgot to check the website.
We both screwed up. :(
Already reported on 1/12/09 right here, but with more details above.
Though I prefer the vampire motif of the earlier post.
And it is the subject of a class action:
With complaints (hundreds!) here:
and here:
@supercereal: The way I understand it every time I get a change notification is that I can reject the terms by sending a certified letter...BUT if I use the card to buy something after that point in time it signals that I do in fact accept the terms. So by rejecting the terms it basically says that I'm just going to keep paying it the way I was paying it and I'm not going to buy anything else...At least that was how I understood my notifications, all from BOA.
@nicemarmot617: I tried to do that with BOA, I have 2 cards, they won't let me transfer one to the other with those deals. I'd have to go to a different provider. They used to be different providers but BOA bought everything.
Had the same crap happen to me with CitiBank. Called the executive office and all is well again in credit card land.
@nicemarmot617: The problem with that method is that Chase often adds clauses to the balance transfer portion of the initial contract stating that only balance transfers from banks OTHER than Chase will be allowed under the terms of the agreement. After all, it's an easy way for them to keep raking in money on those high-interest accounts while giving you a way to rack up some more interest with them.
This one's from experience.
@b.k.: Same here my friend, in fact it seemed so rude I almost laughed. I have $62 dollars current balance on this card, this must be one of those "We got a free ticket to ride, now we don't need you small time consumers anymore. Buzz off or eat it."
Along with Wells Fargo, Citigroup, and Bank of America, J.P. Morgan Chase received $25 billion as one of four of the original nine U.S. banks to receive money from the Treasury under its Capital Purchase Program.
Translation? Bailout money from the government becomes the new consumer, you mean nothing now. If a bank wants our money, they can just pony up to congress. Why bother with personal lines of credit at all? That's small fries...
I just got a letter on my main 3.99% fixed account saying purchases and balance transfer rates were going up Prime+5.99%. However, it did state clearly that Promo rates (what I use this account for) would not be affected. However, I'm going to be watching like a hawk to make sure that it continues to be honored.
Usually, that's how it works. In this case, Chase isn't offering that option. Your choices are:
1. accept the new terms
2. pay off the balance in full
@Macillini
Do you happen to have that number for CitBank. They just pulled the same thing with me, and I am hoping to get my APR back down. Thanks in advance!
This article scared me, so, I logged on to check my 2.99 fixed until paid....all is cool for me. No increase in fees, etc. Must be based on credit rating or score?
Also, am I the only person that has received a letter from the credit card companies this week increasing my credit limit? Guess that's how they'll say they have increased lending, ha.
reject the new terms.
close the account.
pay as agreed.
keep the old interest rate.