Latest Credit Card Gambit Will End Badly

[kelton56]

Consumer Complaints About Chase Credit Cards

Chase customers with low "promo/teaser" interest rates are receiving letters notifying them the minimum monthly payments will increase to 5% from 2%. Chase also raises its balance transfer fee to 5%, no cap. Bank of America is at 4%, no cap.

The big card issuers, now withering under record default/charge-off rates >10% (and likley going to 20%), are rushing to change terms and conditions for cardholders before new rules go into effect next year which would prohibit such changes.

Clearly the intended effect is to accelerate the pace at which low-fixed-rate balances (4.99% etc.) are repaid, OR, more likely, to throw many of our fellow debt-slaves into default by making them unable to meet the new minimum payments, such as $400/mo increasing to $1,000/month (!), thereby giving the credit card company the opportunity to declare the debtor in default of the promo/teaser terms, and raise the interest rate to 20% or 30% plus.

This will KILL the remaining retail economy, no question, as cardholders are forced to shut down any and all discretionary spending to divert funds to credit card payments, or it will accelerate the pace of personal bankruptcies, or both.

Either way, kiddies, it'll be a lean Christmas (or Hanukkah or Kwanza or whatever) this year, so don't expect much under the tree (or menorah or whatever).

Your tax dollars at work. :mad: (Well, not Chase, but for BofA and Citi...)

[rabot10]

Re: Latest Credit Card Gambit Will End Badly

Consumer Complaints About Chase Credit Cards

Chase customers with low "promo/teaser" interest rates are receiving letters notifying them the minimum monthly payments will increase to 5% from 2%. Chase also raises its balance transfer fee to 5%, no cap. Bank of America is at 4%, no cap.

The big card issuers, now withering under record default/charge-off rates >10% (and likley going to 20%), are rushing to change terms and conditions for cardholders before new rules go into effect next year which would prohibit such changes.

Clearly the intended effect is to accelerate the pace at which low-fixed-rate balances (4.99% etc.) are repaid, OR, more likely, to throw many of our fellow debt-slaves into default by making them unable to meet the new minimum payments, such as $400/mo increasing to $1,000/month (!), thereby giving the credit card company the opportunity to declare the debtor in default of the promo/teaser terms, and raise the interest rate to 20% or 30% plus.

This will KILL the remaining retail economy, no question, as cardholders are forced to shut down any and all discretionary spending to divert funds to credit card payments, or it will accelerate the pace of personal bankruptcies, or both.

Either way, kiddies, it'll be a lean Christmas (or Hanukkah or Kwanza or whatever) this year, so don't expect much under the tree (or menorah or whatever).

Your tax dollars at work. :mad: (Well, not Chase, but for BofA and Citi...)

Hey I'm a big OU fan U?

[CanuckinTX]

Re: Latest Credit Card Gambit Will End Badly

Hey I'm a big OU fan U?

Can we get this thread shut down? :p

[flintlock]

Re: Latest Credit Card Gambit Will End Badly

That's OK, Florida took care of that last season.

[strittmatter]

Re: Latest Credit Card Gambit Will End Badly

Can we get this thread shut down? :p

If it wasn't for all of their blue chip recruits that come out of Texas.................


Ya, shut it down.

[kelton56]

Re: Latest Credit Card Gambit Will End Badly

You guys are on the wrong forum if you only want to talk about OU football. Thought I was posting to iTulip. Sorry.

[World Traveler]

Chase credit card - leave it at home

I went to the link you posted for consumersaffairs. 136 postings in last couple of days re: Chase credit cards. Complaints were essentially similar. Chase lured them in with an offer to consolidate credit card debt to one of their cards, offering a low-rate, fixed-rate offer for entire balance transferred, typically 3.99%. That would remain in effect till transferred balance paid off.

Then, last month, Chase advised them that the minimum payment on that balance had increased from 2% to 5%. If they can't pay the new minimum balance due, their interest rate is jacked up to 29.9% and they get hit with penalties. Many had transferred over substantial amounts from other credit cards, and they don't have the money to pay the 5% minimum due. Majority of posters called Chase to complain and Chase is not exempting anyone, no matter their personal situation.

This is as ugly as bait and switch gets. Chase can do this now, because new credit card regulations, prohibiting this, don't go into effect till next year.

I had a Chase credit card but I closed it around 4 years ago, because they were the worst - they did double-cycle interest charges (current month and last month's balances), so effectivley interest charges were double on the Chase card, compared to another card with a similar interest rate. I would never do business with Chase again.

[cjppjc]

Re: Chase credit card - leave it at home

I went to the link you posted for consumersaffairs. 136 postings in last couple of days re: Chase credit cards. Complaints were essentially similar. Chase lured them in with an offer to consolidate credit card debt to one of their cards, offering a low-rate, fixed-rate offer for entire balance transferred, typically 3.99%. That would remain in effect till transferred balance paid off.

Then, last month, Chase advised them that the minimum payment on that balance had increased from 2% to 5%. If they can't pay the new minimum balance due, their interest rate is jacked up to 29.9% and they get hit with penalties. Many had transferred over substantial amounts from other credit cards, and they don't have the money to pay the 5% minimum due. Majority of posters called Chase to complain and Chase is not exempting anyone, no matter their personal situation.

This is as ugly as bait and switch gets. Chase can do this now, because new credit card regulations, prohibiting this, don't go into effect till next year.

I had a Chase credit card but I closed it around 4 years ago, because they were the worst - they did double-cycle interest charges (current month and last month's balances), so effectivley interest charges were double on the Chase card, compared to another card with a similar interest rate. I would never do business with Chase again.

I'm no math expert but if you transfer $10,000 at 3.99%, and can only pay the 2%. How many months does it take to pay it off?

If you can't pay 5% of the balance, you were going bankrupt anyway.

[flintlock]

Re: Chase credit card - leave it at home

I'm no math expert but if you transfer $10,000 at 3.99%, and can only pay the 2%. How many months does it take to pay it off?

If you can't pay 5% of the balance, you were going bankrupt anyway.

Thank you.

Credit card companies are slimy bastards, don't play their game if you can't afford to get out of it.

[World Traveler]

Re: Chase credit card - leave it at home

I totally agree, Flintlock. Just don't play their game.

A lot of Americans spent more than they could afford and are now buried under debt. The double whammy are the types of games Chase plays.

I hope one of the outcomes of this economic crisis is that more Americans (lots more) decide to get off the debt mill and live within their means.

[don]

Re: Latest Credit Card Gambit Will End Badly

I've been using a GMMC card for years. Now it's a HSBC card. Enough said on that score. Yesterday I got a notice informing me my cash advance (which I've never used- I'm a zero monthly balance guy) would now be limited to 25% of my credit limit. The squeeze goes on....

[grapejelly]

Re: Latest Credit Card Gambit Will End Badly

wonderful news for consumers. Debt slavery is that much closer to abolition.

[jimmygu3]

Re: Chase credit card - leave it at home

I'm no math expert but if you transfer $10,000 at 3.99%, and can only pay the 2%. How many months does it take to pay it off?

If you can't pay 5% of the balance, you were going bankrupt anyway.

Assuming there is also a $10 minimum payment, it would take 11 years to fully pay it off at 4% interest and 2% minimum payment.

At 4% interest and 5% minimum payment, it takes 8 1/2 years, paying it down 50% every 14 months.

At 4% interest and $500 fixed payment, it takes 21 months. Clearly the smartest option for those who can manage it.

Lastly, the option most uneducated debt slaves will get stuck with is 30% interest, which is 2.5% a month on it's own, so forget about the 2% minimum. I assume they make people pay interest plus x%, so probably 3.5% total. In this likely scenario, it takes 34 1/2 years to pay off!

Also, the people I know who are the worst in debt owe a hell of a lot more than 10 grand on their credit cards. Try $50k. This Chase stunt takes a $1000 minimum payment and jacks it up to $2500. It's bankruptcy time. Oh wait, the credit card companies wrote the bankruptcy bill so you can't discharge those debts anymore. :eek:

Jimmy

[cjppjc]

Re: Chase credit card - leave it at home

Assuming there is also a $10 minimum payment, it would take 11 years to fully pay it off at 4% interest and 2% minimum payment.

At 4% interest and 5% minimum payment, it takes 8 1/2 years, paying it down 50% every 14 months.

At 4% interest and $500 fixed payment, it takes 21 months. Clearly the smartest option for those who can manage it.

Lastly, the option most uneducated debt slaves will get stuck with is 30% interest, which is 2.5% a month on it's own, so forget about the 2% minimum. I assume they make people pay interest plus x%, so probably 3.5% total. In this likely scenario, it takes 34 1/2 years to pay off!

Also, the people I know who are the worst in debt owe a hell of a lot more than 10 grand on their credit cards. Try $50k. This Chase stunt takes a $1000 minimum payment and jacks it up to $2500. It's bankruptcy time. Oh wait, the credit card companies wrote the bankruptcy bill so you can't discharge those debts anymore. :eek:

Jimmy

Thank you very much Jimmy. I owe less than $2,000 on my cards. low rates. No big deal. I could pay it off if they try to jack me around.

$50,000 what are these people smoking. :eek:

[Kadriana]

Re: Chase credit card - leave it at home

Thank you very much Jimmy. I owe less than $2,000 on my cards. low rates. No big deal. I could pay it off if they try to jack me around.

$50,000 what are these people smoking. :eek:

A lot are medical bills. I know so many people who either put medical bills on credit cards or owe a lot of money to doctors still. One friend has over 10k she has to pay because she had to have major surgery and that's after insurance paid their part. It's going to take her over a year to pay off her medical bills and that's with spending $50 a week on groceries and shopping at goodwill for all her clothing.