Disney VISA Warning!

[jensen]

I just got screwed by the Disney VISA and wanted to warn others. I took advantage of the 3.99% balance transfer rates they were offering. Then I took a Disney vacation and took advantage of the six months no interest offer. Before doing so I checked to make sure that the vacation charges wouldn't mess up my balance transfer rates and was assured they wouldn't... but, they did!

Here's what happened... my vacation package discount was set to expire on the 19th of the month. I scheduled an automatic payment a few days early to be sure I didn't pay any extra interest. According to Chase, since the payment was early, it was applied toward the highest interest charges (the 3.99% balance transfer charges instead of the 0% interest vacation package). Then three days later, the vacation package expired and went up to 17%.

Now, I'm stuck with a credit card debt at 17%. I've never had a missed or late payment, my credit is stellar... this is not because I'm a bad customer. I got screwed for making my payment too early.

Don't let this happen to you!

 

[msmayor]

I doubt this is unique to Disney VISA, and is really a product of the overhaul in consumer credit designed to FAVOR the consumer.

In the eyes of the card issuer, it must apply the payment in a manner that is MOST beneficial to the consumer and that means paying off the credit balance with the highest cost to you...in this case it is the 3.99% balance instead of what was at 0%. This is precisely what happens when you 'mix' promo rates with any card.

Disney Visa did exactly what the rules say they should do. Unless you called the payment in and specifically and directly told them to apply the payment in the manner YOU wanted, they are obligated to pay down the highest rate first. That's what they did.

 

[robinb]

I have been messed up by this kind of thing too on a balance transfer, except in reverse. It was applied to the LOWEST interest. We basically decided that we would not ever transfer a balance to a credit card that we use for anything else.

 

[gjl]

Removed

 

[sweetdana]

I just got screwed by the Disney VISA and wanted to warn others. I took advantage of the 3.99% balance transfer rates they were offering. Then I took a Disney vacation and took advantage of the six months no interest offer. Before doing so I checked to make sure that the vacation charges wouldn't mess up my balance transfer rates and was assured they wouldn't... but, they did!

Here's what happened... my vacation package discount was set to expire on the 19th of the month. I scheduled an automatic payment a few days early to be sure I didn't pay any extra interest. According to Chase, since the payment was early, it was applied toward the highest interest charges (the 3.99% balance transfer charges instead of the 0% interest vacation package). Then three days later, the vacation package expired and went up to 17%.

Now, I'm stuck with a credit card debt at 17%. I've never had a missed or late payment, my credit is stellar... this is not because I'm a bad customer. I got screwed for making my payment too early.

Don't let this happen to you!

So sorry, this happen. Have you tried calling chase is usually awesome with being understanding?

 

[Marionnette]

I just got screwed by the Disney VISA and wanted to warn others. I took advantage of the 3.99% balance transfer rates they were offering. Then I took a Disney vacation and took advantage of the six months no interest offer. Before doing so I checked to make sure that the vacation charges wouldn't mess up my balance transfer rates and was assured they wouldn't... but, they did!

Here's what happened... my vacation package discount was set to expire on the 19th of the month. I scheduled an automatic payment a few days early to be sure I didn't pay any extra interest. According to Chase, since the payment was early, it was applied toward the highest interest charges (the 3.99% balance transfer charges instead of the 0% interest vacation package). Then three days later, the vacation package expired and went up to 17%.

Now, I'm stuck with a credit card debt at 17%. I've never had a missed or late payment, my credit is stellar... this is not because I'm a bad customer. I got screwed for making my payment too early.

Don't let this happen to you!

It's unfortunate for you (and a lot more people who did the same thing), but Chase did exactly what the Credit Card Accountability, Responsibility and Disclosure Act of 2009 dictates that they MUST do. It's the unintended consequence of a law that is mean to help consumers.

You can call Chase and ask them to wave the interest for the first month as a courtesy since you are a loyal customer with a good record for paying on time. You will probably have to ask them if they are willing to do it. I don't think that they can just offer it to you. They might do it.

I'd also look for a balance transfer to another card to dump that 17% rate if you don't have the cash to pay it off now. Because Chase's hands are tied by the law as to where they must apply your payments. And it's not just the Disney Visa or Chase, it's all credit cards that have to do it this way. So if you do a balance transfer to another card, don't use that card for anything else!

 

[captainjen]

Try tweeting the complaint with disneyvisa hashbared or go to their facebook page and explain your situation. I found that big companies respond to negative tweets and comments on their facebook pages.

 

[davedmaine]

I just got screwed by the Disney VISA and wanted to warn others. I took advantage of the 3.99% balance transfer rates they were offering. Then I took a Disney vacation and took advantage of the six months no interest offer. Before doing so I checked to make sure that the vacation charges wouldn't mess up my balance transfer rates and was assured they wouldn't... but, they did!

Here's what happened... my vacation package discount was set to expire on the 19th of the month. I scheduled an automatic payment a few days early to be sure I didn't pay any extra interest. According to Chase, since the payment was early, it was applied toward the highest interest charges (the 3.99% balance transfer charges instead of the 0% interest vacation package). Then three days later, the vacation package expired and went up to 17%.

Now, I'm stuck with a credit card debt at 17%. I've never had a missed or late payment, my credit is stellar... this is not because I'm a bad customer. I got screwed for making my payment too early.

Don't let this happen to you!

Unfortunately when consumers do balance transfers and no-interest type deals they eventually run into problems..

 

[mhsjax]

I just got screwed by the Disney VISA and wanted to warn others. I took advantage of the 3.99% balance transfer rates they were offering. Then I took a Disney vacation and took advantage of the six months no interest offer. Before doing so I checked to make sure that the vacation charges wouldn't mess up my balance transfer rates and was assured they wouldn't... but, they did!

Here's what happened... my vacation package discount was set to expire on the 19th of the month. I scheduled an automatic payment a few days early to be sure I didn't pay any extra interest. According to Chase, since the payment was early, it was applied toward the highest interest charges (the 3.99% balance transfer charges instead of the 0% interest vacation package). Then three days later, the vacation package expired and went up to 17%.

Now, I'm stuck with a credit card debt at 17%. I've never had a missed or late payment, my credit is stellar... this is not because I'm a bad customer. I got screwed for making my payment too early.

Don't let this happen to you!

Welcome to the world of credit cards. They are there to trip you up. They will try anything and everything to make money off of you, sorry but it is true. I worked for a major one for years.

The only "good" customer to them is one that revolves and pays interest. To them a person that pays off an account or has balances with a low promo rate of balance transfer rate is a bad customer, meaning they aren't making money off of you.

Customers that got the most line increases are ones that didn't pay off the balances and always had about 50% of their credit line tied up. Customers with no balances that paid off their entire balances every month got very little increase, should they request it. Makes you wonder, doesn't it?

Bottom line, they are a business and they are in it to make money and they are hoping that they can get all the interest our of you possible and will do anything to make sure it happens.

 

[Happyjen27]

Shame this happened!!

I have such loathing for Chase that I refuse to get a Disney Visa, even though it would save me tons of money. That is how much I hate Chase.

While I understand this can happen with any card, I think Chase is much less sympathetic to consumers. I've never had this happen so I don't know how my card companies would be in this case, but I'm guessing Chase does not want to work with you at all.

 

[robinb]

It's unfortunate for you (and a lot more people who did the same thing), but Chase did exactly what the Credit Card Accountability, Responsibility and Disclosure Act of 2009 dictates that they MUST do. It's the unintended consequence of a law that is mean to help consumers.

It does help customers because in the past they would apply the payment to the balance with the SMALLEST interest and make you continue to pay interest on the balances with the HIGHEST interest. Under normal circumstances, it is to the customer's advantage to pay off balances with higher interest than lower.

So if you do a balance transfer to another card, don't use that card for anything else!

Yup! That's exactly what we did! We have a card that we made a large (think 2 car loans) balance transfer to and we didn't use it for anything else while we paid it off.

Does anyone know if the OP could have directed the payment to the promotional balance? Or if she can still do it? I seem to remember that my husband had to call Chase every month when we had a promotional 0% Disney resort balance to direct payment correctly. We pay our credit cards off every month and I *think* they used to want to apply the amount to the promo and not the new charges (thereby making us pay interest when we really shouldn't have). We would then pay our regular balance and the full promo on the last month of the promo.

OP, did you try to move up the supervisor food chain to see if they can apply the payment the way you want them to?

 

[jmartinez1895]

In the card member agreement with Chase it says that payment will be applied to balance with smallest interests first, unless it is a promotional rate of 0. It has been this way for ever with them. When we used our card in 2007 to book our vacation we where warned of this by the Disney rep when we booked ( I know this person was just going above an beyond the call of duty to let us know because it is non of ther business)

 

[Marionnette]

Welcome to the world of credit cards. They are there to trip you up. They will try anything and everything to make money off of you, sorry but it is true. I worked for a major one for years.

The only "good" customer to them is one that revolves and pays interest. To them a person that pays off an account or has balances with a low promo rate of balance transfer rate is a bad customer, meaning they aren't making money off of you.

Customers that got the most line increases are ones that didn't pay off the balances and always had about 50% of their credit line tied up. Customers with no balances that paid off their entire balances every month got very little increase, should they request it. Makes you wonder, doesn't it?

Bottom line, they are a business and they are in it to make money and they are hoping that they can get all the interest our of you possible and will do anything to make sure it happens.

I disagree with your definition of a "good" customer. The credit card companies make money every time you swipe your card. They charge the merchant a fee that runs between 2%-3.5% of the cost of the purchase. Even if you pay off your balance in full each month, they are still making money off of your activity.

And when it comes to lines of credit, well my Disney Visa LOC is obscenely high and we NEVER carry a balance. I didn't even ask for it. That's what they extended to me when I applied. I have never even approached 50% of the max, even when we were remodeling our kitchen.

And again, Chase didn't do anything to the OP that they were not required to do as per the law. They didn't set out to screw over the OP. It was the OP who did not fully understand the terms of her credit agreement.

 

[Marionnette]

It does help customers because in the past they would apply the payment to the balance with the SMALLEST interest and make you continue to pay interest on the balances with the HIGHEST interest. Under normal circumstances, it is to the customer's advantage to pay off balances with higher interest than lower.

Um, yes, that's true but the unintended consequence of the law is what messed up the OP. The OP made a payment mid-cycle and it didn't go to the promotional rate that was at 0%. It went to the promotional rate that was at 3.99% instead. The problem is that the OP needed to pay off the 0% interest promotional rate off before it ballooned to 17% and that didn't happen.

 

[Marionnette]

In the card member agreement with Chase it says that payment will be applied to balance with smallest interests first, unless it is a promotional rate of 0. It has been this way for ever with them. When we used our card in 2007 to book our vacation we where warned of this by the Disney rep when we booked ( I know this person was just going above an beyond the call of duty to let us know because it is non of ther business)

Things have changed since 2007. Now, by law, they have to apply payments first to the "minimum payment" on all balances and then to the balance with the highest interest rate. If there is no minimum payment due because you've already paid it and you are making a mid-cycle payment, like the OP did, the payment gets applied to the balance carrying the higher interest rate.

 

[scard192]

Why should anyone tweet or post negative comments about Chase if what they did was dictated by law re: "Chase did exactly what the Credit Card Accountability, Responsibility and Disclosure Act of 2009 dictates that they MUST do. It's the unintended consequence of a law that is mean to help consumers."

It's not Chase or any other credit card company's fault if they are doing what law dictates they must do.

 

[robinb]

Um, yes, that's true but the unintended consequence of the law is what messed up the OP. The OP made a payment mid-cycle and it didn't go to the promotional rate that was at 0%. It went to the promotional rate that was at 3.99% instead. The problem is that the OP needed to pay off the 0% interest promotional rate off before it ballooned to 17% and that didn't happen.

Um, yes ... I understand what happened. Which is why I said "Under normal circumstances ...". Her situation is NOT normal.

 

[Marionnette]

Um, yes ... I understand what happened. Which is why I said "Under normal circumstances ...". Her situation is NOT normal.

I think her situation is very normal. Most people who want to avoid paying interest on their 0% promotional rate will want to pay it off before the default rate kicks in. But they also want to get the full 6 months out of their offer so they wait until just before the day when it goes in effect. They make a payment in the middle of the cycle thinking that it will take care of the impending rate change but instead the payment goes toward another balance they are carrying which is at a higher interest rate.

 

[ceecee]

Try calling them and see if they will help you that way. I had a late charge once (interest) because they didn't receive my pyt in the mail on time(this was before online pyt) and they wrote it off.

 

[jensen]

It's unfortunate for you (and a lot more people who did the same thing), but Chase did exactly what the Credit Card Accountability, Responsibility and Disclosure Act of 2009 dictates that they MUST do. It's the unintended consequence of a law that is mean to help consumers.

Unfortunately when consumers do balance transfers and no-interest type deals they eventually run into problems..

Which is exactly why the Accountability Act was enacted.

Today I plan to make a calls to a couple of my friends who work for the Chair of the Senate Banking Committee. It would be easy enough for the law to say that the payment goes toward the highest interest charges during "that billing cycle" instead of the "on that day".

We'll see what they have to say about how the credit card companies have found a way to skirt his carefully crafted legislation.

Shame this happened!!

I have such loathing for Chase that I refuse to get a Disney Visa, even though it would save me tons of money. That is how much I hate Chase.

While I understand this can happen with any card, I think Chase is much less sympathetic to consumers. I've never had this happen so I don't know how my card companies would be in this case, but I'm guessing Chase does not want to work with you at all.

When I contacted them, they did agree to remove some interest charges. But, they wouldn't give me back the lower interest rate. She said that I'd have to write a letter asking for it... all the while racking up more high interest charges.

So, I'll be paying it off today. Fortunately, I have the ability to do that. But, I wanted to make the warning to others who may not.