Chase likes to raise the rates of cardholders whose only fault is properly using their credit card, according to an ABC 15 investigation. The rate hikes affect cardholders who do not exceed their credit limits or miss payments, with some APRs jumping from 7.99% to over 22%. From ABC 15:
“Chase quite often if they see someone getting somewhere near their credit limit, but never exceeding their credit limit, will nevertheless bump that person up,” [Joe Ridout of Consumer Action] said.
While Citibank announced this year it is pulling back from random interest rate increases, Ridout said Chase is forging ahead.
“We get more complaints of this nature from Chase than from all other issuers combined,” Ridout said.
The rate changes are almost always cloaked in small print, going unnoticed until they take effect when the next bill arrives. If your credit card company surprises you with a higher APR, call and complain. If they won’t lower your APR, get yourself a new card. Keep the old card around so your credit score doesn’t take a hit, but don’t use it for any new purchases.
Credit Card Interest Rate Hike – Is it Unfair? [ABC 15]
(AP Photo/Amy Sancetta)