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AlexandNessa
10-19-2010, 12:17 PM
I think it's time to cancel my account. This is just ridiculous.

I owed $3K on our WBTA. That promotional APR expires next month.

Before we sailed, I added $1500 in an OBC for that cruise. That ends in February 2011. I smugly did this thinking that I would actually have until February to pay this.

Then on the ship, I made a $250 future cruise deposit on the DV. That expires in March 2011.

While we were away, I scheduled a payment of $2000 for 10/1. That wiped out the $1500 OBC and applied only $500 to my balance of the WBTA cruise.

So, I owe $2500 on the WBTA and $250 in a new cruise deposit now.

In order to not pay any interest, I need to pay $2750. Because if I made a payment of $2500, Chase would apply it first to the $250 deposit (even though that expires in March), and leave me the remaining balance on the WBTA, even though that expires in November.

Regardless of when your promotional APRs expire, Chase now applies your payment to the promotion with the lowest balance. And it's not based on when the APR expires, it's based on the date of your last statement.

No amount of calm reason or number of phone calls would get that change that.

It was really a too bad, so sad attitude from Chase.

MTmomma
10-19-2010, 12:21 PM
Frankly, it is thier right to apply payments how they have laid out in thier terms of use agreement, wich you agreed to. Legally they have to send a notice any time they change their pilicies. Unfortunatly for you, you used implied consent just by using your card. It is a credit card. You are using THEIR money, and frankly, they have a right to receive compensation for you using THEIR money. I feel zero sympathy for this, as you have two options. Pay it off now, and close the account, thereby incuring no interest on the account, OR pay off part now, and pay interest to the credit card company. You are well within your rights to pay off the card and close the account, and seek credit services from a different vendor.

cruisecastle
10-19-2010, 12:22 PM
I think it's time to cancel my account. This is just ridiculous.

I owed $3K on our WBTA. That promotional APR expires next month.

Before we sailed, I added $1500 in an OBC for that cruise. That ends in February 2011. I smugly did this thinking that I would actually have until February to pay this.

Then on the ship, I made a $250 future cruise deposit on the DV. That expires in March 2011.

While we were away, I scheduled a payment of $2000 for 10/1. That wiped out the $1500 OBC and applied only $500 to my balance of the WBTA cruise.

So, I owe $2500 on the WBTA and $250 in a new cruise deposit now.

In order to not pay any interest, I need to pay $2750. Because if I made a payment of $2500, Chase would apply it first to the $250 deposit (even though that expires in March), and leave me the remaining balance on the WBTA, even though that expires in November.

Regardless of when your promotional APRs expire, Chase now applies your payment to the promotion with the lowest balance. And it's not based on when the APR expires, it's based on the date of your last statement.

No amount of calm reason or number of phone calls would get that change that.

It was really a too bad, so sad attitude from Chase.

LOL, that's the law. Thank Congress. They mandated payments be made this way under the new law that went into affect this summer.

AlexandNessa
10-19-2010, 12:27 PM
Frankly, it is thier right to apply payments how they have laid out in thier terms of use agreement, wich you agreed to. Legally they have to send a notice any time they change their pilicies. Unfortunatly for you, you used implied consent just by using your card. It is a credit card. You are using THEIR money, and frankly, they have a right to receive compensation for you using THEIR money. I feel zero sympathy for this, as you have two options. Pay it off now, and close the account, thereby incuring no interest on the account, OR pay off part now, and pay interest to the credit card company. You are well within your rights to pay off the card and close the account, and seek credit services from a different vendor.

Ouch. :headache:

Yes, you are right. This is a gripe on a message board, but I just feel like a Nun in Catholic school slapped my hand with a ruler. Really?

It's just disappointing that 0% APR on Disney Purchases for 6 months has a big, fat giant asterisk next to it. I used to enjoy it, but now that they've changed the terms, I'm done with it.

gzmtlock
10-19-2010, 12:34 PM
I think it's time to cancel my account. This is just ridiculous.

I owed $3K on our WBTA. That promotional APR expires next month.

Before we sailed, I added $1500 in an OBC for that cruise. That ends in February 2011. I smugly did this thinking that I would actually have until February to pay this.

Then on the ship, I made a $250 future cruise deposit on the DV. That expires in March 2011.

While we were away, I scheduled a payment of $2000 for 10/1. That wiped out the $1500 OBC and applied only $500 to my balance of the WBTA cruise.

So, I owe $2500 on the WBTA and $250 in a new cruise deposit now.

In order to not pay any interest, I need to pay $2750. Because if I made a payment of $2500, Chase would apply it first to the $250 deposit (even though that expires in March), and leave me the remaining balance on the WBTA, even though that expires in November.

Regardless of when your promotional APRs expire, Chase now applies your payment to the promotion with the lowest balance. And it's not based on when the APR expires, it's based on the date of your last statement.

No amount of calm reason or number of phone calls would get that change that.

It was really a too bad, so sad attitude from Chase.

I wonder when they changed which they pay off first? As recently as two months ago, I made a large payment - it was applied to my oldest balance/soonest to expire charge, leaving two smaller charges with later expiration dates still due. With your info, I'll certainly call before making any more large charges! (And I don't recall getting any notification that their procedures were going to change, but I'm not always the first one to get to the mail, either.)

Also, with your OBC "pre-payment" - I don't think the 0% for 6 months applies to that. All of my on board charges have always been due immediately (or carry the balance and get interest charged). That's been true for me for 5 cruises over the past years.

I agree that their new policies, as you've explained them, leave a lot to be desired. As a consumer, I'll move to a more lucrative card, if this applies to my account! Let Chase make their money off someone else!

AlexandNessa
10-19-2010, 12:37 PM
LOL, that's the law. Thank Congress. They mandated payments be made this way under the new law that went into affect this summer.

Oh, I know ... by law they are supposed to apply payments to higher interest charges first, right? but the Chase rep acted like she was doing me a favor because Chase "allows you to pay purchases first before promotional APRs."

What is that saying, "I'm with the Government, and I'm here to help." :)

gzmtlock
10-19-2010, 12:37 PM
LOL, that's the law. Thank Congress. They mandated payments be made this way under the new law that went into affect this summer.

Dang, are you serious?!? I sure missed that one! Welll, so much for pre-buying Disney vacations with overlapping billing cycles and paying for them over time. Guess I'll have to start actually saving the money ahead of time.:rolleyes1

MTmomma
10-19-2010, 12:43 PM
Wow! I do apologise, I really did not MEAN to come across as an uptight NUN! Credit cards are a VERY touchy subject for me... I have watched friends ruin their lives over them. So again, I am sorry for sounding mean.

AlexandNessa
10-19-2010, 12:45 PM
I wonder when they changed which they pay off first? As recently as two months ago, I made a large payment - it was applied to my oldest balance/soonest to expire charge, leaving two smaller charges with later expiration dates still due. With your info, I'll certainly call before making any more large charges! (And I don't recall getting any notification that their procedures were going to change, but I'm not always the first one to get to the mail, either.)

Also, with your OBC "pre-payment" - I don't think the 0% for 6 months applies to that. All of my on board charges have always been due immediately (or carry the balance and get interest charged). That's been true for me for 5 cruises over the past years.I agree that their new policies, as you've explained them, leave a lot to be desired. As a consumer, I'll move to a more lucrative card, if this applies to my account! Let Chase make their money off someone else!



Bolding mine. You are correct if you use your DV as the credit card on file for your OBC, there is no promotional APR associated with that.

However, if you charge your OBC ahead of time (I had my TA do it), that is billed to DCL Reservations, and a promotional APR does apply. Now granted, in my case, a promotional APR didn't apply at all, because it was supposed to expire in February 2011, and I've got it paid off now, lol.

Bottom line to those who weren't aware: they pay off the smallest balances first. It makes no difference when the promotional APR expires.

It used to be that if the promotional APR expired within 6 months, your payment would be applied to that balance first. Not anymore. So if you didn't read the fine print with a magnifying glass, now you know.

dursin
10-19-2010, 12:52 PM
I cancelled my Disney Visa last year when they tried to raise my interest rate from 10% to 18% for no reason other than they wanted more money. Never paid the thing late in the 5+ years I had it.

carlamouse
10-19-2010, 12:55 PM
You guys may want to read this thread also:

http://www.disboards.com/showthread.php?t=2572852

This is why my Disney VISA now has a $0 balance. Now I will only use it for one cruise or WDW package at a time---and nothing else.

sayhello
10-19-2010, 12:58 PM
And if you look, I think you'll notice that your interest rate on your Disney Visa card has jumped quite a bit. That happened back in February. My interest rate almost doubled. So if you do end up paying interest on that vacation charge: Ouch!

The only thing the Disney Visa is good for these days is Rewards Dollars. If that goes away, the card is getting cut into tiny little pieces

Sayhello

Tinkerkell123
10-19-2010, 01:01 PM
No amount of calm reason or number of phone calls would get that change that.

It was really a too bad, so sad attitude from Chase.

Calm reason? Chase? :lmao:

AlexandNessa
10-19-2010, 01:03 PM
Wow! I do apologise, I really did not MEAN to come across as an uptight NUN! Credit cards are a VERY touchy subject for me... I have watched friends ruin their lives over them. So again, I am sorry for sounding mean.

No, I'm sorry. You were absolutely right in everything you said.

Bygones. :goodvibes

It just seems shady to me to advertise 6 months free financing, but only if you have one charge every 6 months, lol. Fortunately, I do have the $$ to pay it off. I just didn't want to! :cool2:

AlexandNessa
10-19-2010, 01:12 PM
Calm reason? Chase? :lmao:

I thought I could catch more flies with honey. What was I thinking? :eek:

Conservative Hippie
10-19-2010, 01:19 PM
It is pretty crummy. They should apply payments to older charges first if they all have the same APR. I do like that they now apply payments to charges with higher APR's first, but that was not always the case. Credit card companies make their money off of interest so of course they are going to figure out a way to get the most interest off of you. We use our DV to make all of our everyday purchases just to get the Reward Dollars, and pay it off in full every months, so I'm sure Chase hates us!

diane648
10-19-2010, 01:20 PM
First, sorry about this -- I understand why you're upset.

I did read a thread recently that I believe said if your promotional balance was to expire in less than 60 days, that the payment should be applied to that balance first. The person who posted called & they fixed it. Which, is a total pain, but still you might be able to end up where you wanted to be.

Hope that works!

Diane

AlexandNessa
10-19-2010, 01:29 PM
First, sorry about this -- I understand why you're upset.

I did read a thread recently that I believe said if your promotional balance was to expire in less than 60 days, that the payment should be applied to that balance first. The person who posted called & they fixed it. Which, is a total pain, but still you might be able to end up where you wanted to be.

Hope that works!

Diane

Sadly, that 60-day rule no longer applies! I spoke with 3 different people at Chase (one a manager), and all of them insist that my payment was applied correctly.

They apply to the lowest balance first, regardless of promotion expiration. That's what they said. I am wondering if I owed less on the WBTA than I did on my OBC if they would've paid that off first, or if they would've gone by the newer charge first.

I am totally confused, but I am stuck paying my entire balance if I don't want any interest charges.

This is a pretty big change, so I'd just like to warn others to only keep one promotion at a time if they really need the 6 months free financing.

P.S. When I called them to review the account, this is the generic letter I got:

"Generally, and except as required by law, we will credit payments over the required Minimum Payment to balances with the highest APRs first. We will then credit payments to lower rate balances in descending order of APRs. This may affect the amount of any payment applied to introductory or promotional financing balances.

If a payment is greater than the balance of your last statement, the excess will be applied toward future transactions or refunded to you if no additional charges are made to your account."

Clears everything up, right?! :rotfl2:

DW2010
10-19-2010, 01:36 PM
Wow! I do apologise, I really did not MEAN to come across as an uptight NUN! Credit cards are a VERY touchy subject for me... I have watched friends ruin their lives over them. So again, I am sorry for sounding mean.

You wouldn't think you'd be so defensive over credit cards if your friends have ruined their lives. Or maybe it's that you're trying to sternly educate people about how credit cards can be evil :confused:

lmhall2000
10-19-2010, 01:46 PM
You wouldn't think you'd be so defensive over credit cards if your friends have ruined their lives. Or maybe it's that you're trying to sternly educate people about how credit cards can be evil :confused:

I could easily see why poster would be defensive, those said people who have wrecked their credit and even likely filed bankruptcy still ask her for money! :scared1:

Credit cards are NOT GOOD, I am soo close to putting an 'ever' there but they're the only thing that helped us survive 2 mortgages for 31 months...now that we've FINALLY closed on our other house, we are diligently paying all these suckers down....what I found amazing and underhanded was that most (only Discover did not do this) tried to pre-empt the Congress 'protection' laws by sending letters out to all holders saying your interest rate would be raised by double sometimes triple their amount BEFORE that law went into action.

So 3 of my cards I had for over 20 years and NEVER really NEVER missed a payment took me from 3.9-5.9% up to over 20%....the only way to avoid it was to close the account, so you can bet I closed every single one of them...all my credit cards are below 5.9% interest and I only have 2 open cards at 0 balance. But, if I had not taken the time to read alll the fine print sent in numerous mailings I would be sitting on 7 cards all over 20%! We will be able to pay it all off in 14 months even our car payment, next will be double payments on mortgage...I want to enter a stage in my life where I only have 2 cards with 0 balance for emergencies and no monthly payments besides insurance/electrical/phone....ahhhh...to dream! That's why we take cruises, to take us away from all this madness! :)

Sadly, I think MANY have filed bankruptcy and the cc companies are trying to recoup their losses through the cardholders that don't file bankruptcy.

Knock this up for lesson learned and be happy you didn't get stung even greater by their 5000 word 'changes to your account' letters!!

Tara

miatamel
10-19-2010, 01:57 PM
I'm so fiscally uneducated and I have been worried about this for a couple of weeks so maybe someone can explain it to me so I don't have to call Chase and get upset and/or confused:

We charged the 11 day Christmas cruise on our Rewards card a couple of weeks ago, with the 6/0% a big reason we did it. We had a balance on the card, not huge but a balance nonetheless. When I make my payment next week, will they apply the payment to that balance so I can knock down that interest charge or will they automatically apply it to that big promotional charge?

sayhello
10-19-2010, 01:59 PM
I'm so fiscally uneducated and I have been worried about this for a couple of weeks so maybe someone can explain it to me so I don't have to call Chase and get upset and/or confused:

We charged the 11 day Christmas cruise on our Rewards card a couple of weeks ago, with the 6/0% a big reason we did it. We had a balance on the card, not huge but a balance nonetheless. When I make my payment next week, will they apply the payment to that balance so I can knock down that interest charge or will they automatically apply it to that big promotional charge?They have to apply it to the balance with the highest interest rate first. So they *SHOULD* apply it to the existing balance.

Sayhello

thegales
10-19-2010, 05:05 PM
I'm so fiscally uneducated and I have been worried about this for a couple of weeks so maybe someone can explain it to me so I don't have to call Chase and get upset and/or confused:

We charged the 11 day Christmas cruise on our Rewards card a couple of weeks ago, with the 6/0% a big reason we did it. We had a balance on the card, not huge but a balance nonetheless. When I make my payment next week, will they apply the payment to that balance so I can knock down that interest charge or will they automatically apply it to that big promotional charge?

Hey miatamel - we will see you on the cruise.

I called Chase to figure out exactly how they would apply payments if there was only one promotion (not the same scenario as the OP, since there were two promotions at the same time).

What they told me is you must make the minimum payment on the card, and that payment went against the promotion. Any payments above the minimum would be applied against the balance with the highest rate. So to not have any interest, I needed to pay the prior month purchase amount plus the minimum payment. My next statement had the original promotion amount less the minimum payment.

So if the promotion was $5,000, other purchases were $3,000, and the minimum payment was $200, I needed to make a payment of $3,200 to avoid interest.

I still don't think I completely understand how they do it, but I do know that I have not had to pay interest using this method.

The agent also warned me that as I got closer to the promotion end date, to call back to make sure I understood how payments were to be applied. As others have noted, if it is less than 60 days, then they use different rules to apply payments.

The good news is that we all have each other to help figure this out. While we are not getting the promotion that we thought (no interest for 6 months), I am getting some benefit, plus the Disney Rewards.

I would also recommend that you call them to make sure you get the same story. That way in case there is an issue, you can say you spoke with XXX on a certain date, and followed those rules. Credit Card companies usually don't adjust your balance if you told them you read it on the internet. Good luck to all.

carmie3377
10-19-2010, 05:21 PM
Hey miatamel - we will see you on the cruise.

I called Chase to figure out exactly how they would apply payments if there was only one promotion (not the same scenario as the OP, since there were two promotions at the same time).

What they told me is you must make the minimum payment on the card, and that payment went against the promotion. Any payments above the minimum would be applied against the balance with the highest rate. So to not have any interest, I needed to pay the prior month purchase amount plus the minimum payment. My next statement had the original promotion amount less the minimum payment.

So if the promotion was $5,000, other purchases were $3,000, and the minimum payment was $200, I needed to make a payment of $3,200 to avoid interest.

I still don't think I completely understand how they do it, but I do know that I have not had to pay interest using this method.

The agent also warned me that as I got closer to the promotion end date, to call back to make sure I understood how payments were to be applied. As others have noted, if it is less than 60 days, then they use different rules to apply payments.

The good news is that we all have each other to help figure this out. While we are not getting the promotion that we thought (no interest for 6 months), I am getting some benefit, plus the Disney Rewards.

I would also recommend that you call them to make sure you get the same story. That way in case there is an issue, you can say you spoke with XXX on a certain date, and followed those rules. Credit Card companies usually don't adjust your balance if you told them you read it on the internet. Good luck to all.

Okay Chase needs to make up their mind or better train their employees to inform us correctly. I had a payment due 10/10/10, just 9 days ago. I have one promotion on there (expires 3/13/11). I paid only my new purchase balance and not new purcahse balance plus minimum and every bit of it went toward the new purchases. Don't get me wrong, I'm glad it did but according to what you were told, it shouldn't have worked that way. I had it all figured out last spring, when I had 4 promos going on, all with different expiration dates. Everything was applied correctly and I had ZERO interest charged. Now they change everything up. I did request a copy of my card terms and received in mail yesterday. Haven't had a chance to read it yet but plan on withing the next couple of days.

I still think that how ever many days I get at 0% is a bonus but it should't be advertised as 6 months. I will continue to put Disney Vacations on the card as even if I get one month over the "grace period" it's still better than the next credit card (unless that card has awesome rewards). I just wish they would make up their mind and inform us so we are not caught off guard or have to find out on a message board.

DLW8
10-19-2010, 06:51 PM
It makes no sense to pay the new purchase balance PLUS the minimum.

I have had the card for years (charter member) and have used it for a few WDW and DCL trips, including one that is on there now. I always pay the balance (new purchases, NOT including the 0% promo balance) and I do not incur finance charges.

My current trip and the last one have been after they changed the laws, and I didn't have an issue with my payments being applied to my "purchase" balance that has an interest rate attached first and then to my promo balance.

I just keep an eye on these every statement....

thegales
10-20-2010, 03:26 PM
I agree that the minimum plus the current purchases made no sense, but the agent actually went through the example. And yes, they need to get their agents to all say the same thing. Since this is what I was told, I did not want to risk it by not paying the excess minimum.

Again, I am happy that I am getting some benefit, even though it is not a true "6 months, 0% interest". But since I actually pay a little more each month on the promotional balance, by the time the 6 months comes, it is not as large of a balance. And it is not like I can earn a high percentage if I invested the money with the current rates.