Chase just notified Greg that they’re more than doubling his minimum payment requirement. Because he and his wife are carrying such a large balance due to a promotional balance transfer offer a few years ago, this pushes their monthly payment to nearly $1,000.
Chase Bank sent me a notice they are hiking minimum payment fees from present level of 2% to 5%!! This means on my account, where I took their balance transfer offer for over $25K several years ago at a fixed 5.9% rate, that my monthly payment is now going to go up $558 to $930 !!!
This is insane. More people will claim inability to pay or declare bankruptcy with this “strategy.” My wife and I are trying to make ends meet with both our salaries reduced by our companies, costs for everything increasing as usual. This news from Chase causes us immediate financial stress, as it will others.
Isn’t this behavior the exact kind Congress is trying to prevent???
Greg doesn’t specify, but some customers who are subject to this hike aren’t given the option to close their accounts at the previous terms. They’re just stuck with the new supersized payment.
If you’re a Chase customer carrying a large balance who has been hit with this minimum payment increase and you simply can’t afford it, consider starting some sort of debt management program. The credit counseling website Vision Credit says that Chase in particular has become very responsive to requests for payment reductions for customers who are in debt management programs—in fact, Chase now gives some credit counselors the ability to lower monthly payments automatically.
Entering a debt management or credit counseling program may seem like a serious change in your financial situation, but it sounds like Chase has already put you there. It’s also a lot less nuclear than declaring bankruptcy, and a lot less damaging than letting a balance that large go into default.
Take action now, though—don’t struggle to meet the new payment requirements for the next month or so if it’s just putting off the inevitable.