Received Change of Terms from Chase...ARE THEY INSANE??!!

[Jeanne B]

I received a notice in the mail today and I had to read it three times to make sure I was reading it correctly because I thought for sure it had to be referring to default APR terms...effective 12/1 my interest rate will be prime plus 25.99% which is currently 29.24%!!

And under Other Notices it said..

The principal factor we considered in amending your account is maintaining profitability on your account.

I had a promotional rate up until last month and was planning on paying off my remaining balance by the end of December anyway but I certainly have incentive now...I generally try to pay off my cards in full each month unless I have a promotional rate but I'm so fed up with what they're doing to consumers prior to these new cc laws going into affect. I know there are plenty of people out there using cc's totally irresponsibly but then you have the people who are struggling to survive due to job loss or medical conditions and have probably had to resort to relying on their cc's...I can't imagine getting hit with a 30% interest rate and not having the means to pay it off!!

 

[SandrA9810]

yeah, well there's a few of us too with high APR's in the low 20's and now they're socking them up to 29 and higher. They're already getting enough of our money, how low below the belt can they hit?

 

[disneymom2003]

I think we need to cancel these cards. I also think there will be cc companies that keep rates low and if we look for and use them we will definitely be sending a message to those who try to take us for a ride. See how well they do then.

 

[LanaJae]

Yes they are insane! This will come back to bite them, but only after it's hurt many many people who had budgeted payments and have been faithful in repaying on time.

I am just so grateful that we were able to stick with a plan not to have credit card balances, I am watching close friends deal with this nightmare and it's causing fighting and depression

 

[MAH4546]

The principal factor we considered in amending your account is maintaining profitability on your account.

Yeah, doesn't it suck when a company tries to make a profit. Stupid company.

 

[xmas16]

Yeah, doesn't it suck when a company tries to make a profit. Stupid company.

Very Funny

 

[Jeanne B]

Yeah, doesn't it suck when a company tries to make a profit. Stupid company.

But 30%???? Come on, I have NO issue with a company making a profit and I'm the controller of a company so I certainly understand the concept but do you really think a 30% interest rate is reasonable?? You don't think they're making a profit at the 19% I'm currently being charged? I guess because I was on a promotional rate this past year (when it was still Wash Mutual) and they made very little money on me they're now going to jack it up to 30% to make up for that? I know it's my choice to use the card and I'll be canceling it in December but I'm sorry, it's just WRONG what these credit card companies are doing, flame away.

 

[mgroshans]

they raised my interest rate from 9.24% (which i've had for 2 years) to 16.24%. I've always paid the balance in full since the beginning, never been late on a payment. i called to complain and was told it had nothing to do with credit score, payment history or balances. they just pulled a group of customers and raised the rate. i asked if it could be lowered and they said no. so unless i want to close it, i'm stuck
it is what it is

 

[mommyof2princesses]

I don't even know what our interest rate is because we never carry a balance, but if they start charging my a fee because of that I will cancel. We only use it to earn free gas.

 

[OhMari]

Do you have the terms of the contract when you applied for the card.
I just received a flyer from Well's Fargo, and I can get 0% for 12 months, and the APR would be 9.25% unless I would default on a payment, and then it would increase to 25% APR.
I have a balance on my Disney Chase which is 4.5% yet, which I don't see how, but I'm checking my options, incase Chase does this to me too.

 

[eliza61]

Yeah, doesn't it suck when a company tries to make a profit. Stupid company.

You are absolutely right, because every one knows the poooor credit card companies were barely making a profit before this and their pooor ceo's couldn't afford to put food on the table with the measly salary they were pulling in and who needs a 2.5 million dollar bonus? And of course just because they recently got billions of tax payers dollars along with the fact that they can borrow money from the government at the exorbinant intrest rate of 0%. that is no reason to deny them the right to rape us.

You're absolutely right, how dare us be outraged by practices that in any other industry would be called illegal and in most DA's offices around the country would be called extortion.
Silly us. of course we should allow Chase to do this.

Op, look at it this way. If you have ever needed incentive to get out of debt. That letter was it. That is my first priority for the next year.

 

[msmayor]

But 30%???? Come on, I have NO issue with a company making a profit and I'm the controller of a company so I certainly understand the concept but do you really think a 30% interest rate is reasonable?? You don't think they're making a profit at the 19% I'm currently being charged? I guess because I was on a promotional rate this past year (when it was still Wash Mutual) and they made very little money on me they're now going to jack it up to 30% to make up for that? I know it's my choice to use the card and I'll be canceling it in December but I'm sorry, it's just WRONG what these credit card companies are doing, flame away.

I'm certainly not one who is going to defent 30% as a reasonable interest rate but quite frankly, as long as they are acting under current law there's nothing wrong with what they're doing.

If you are not one to carry a balance at all, then I don't understand why it matters one whit what your interest rate changes to.

Perhaps one reason why consumers got themselves into such a mess with CC debt is that companies LOWERED rates too much years ago...from levels around 18-20%. Folks saw this as a cheap way to get "stuff"...and sadly have now overextended themselves.

 

[Pigeon]

If any of you have access to a credit union, you might want to have a look at what their credit card offerings are like. I belong to two different credit unions and their rates are much more competitive than the big banks.

 

[wdwstar]

I just feel sorry for all the unemployed people that had to live off their cc to survive and now the cc co are putting the squeeze on them, putting them in a deeper financial debt. I also wanted to say, what happen to all that bail out money that most of the co. received ? that they have to raise cc interest.

 

[Colleen27]

I'm certainly not one who is going to defent 30% as a reasonable interest rate but quite frankly, as long as they are acting under current law there's nothing wrong with what they're doing.

Just because something is permissible under the law doesn't mean it is right.

What bothers me about this is it seems like consumers are the only ones expected to learn from this recession - companies are continuing the same short-term thinking that helped create the mess we have now, which makes me think we'll be in for another crisis when the high interest rates drive enough customers to close accounts or default. Then where will the banks turn to start piling on fees to make up for the reduction in CC revenue? Our bank accounts, most likely.

 

[plummer925]

You are absolutely right, because every one knows the poooor credit card companies were barely making a profit before this and their pooor ceo's couldn't afford to put food on the table with the measly salary they were pulling in and who needs a 2.5 million dollar bonus? And of course just because they recently got billions of tax payers dollars along with the fact that they can borrow money from the government at the exorbinant intrest rate of 0%. that is no reason to deny them the right to rape us.

You're absolutely right, how dare us be outraged by practices that in any other industry would be called illegal and in most DA's offices around the country would be called extortion.
Silly us. of course we should allow Chase to do this.

Op, look at it this way. If you have ever needed incentive to get out of debt. That letter was it. That is my first priority for the next year.

I do agree with everything you say...however...

WE (I say we because I, too, have cc debt) chose to get ourselves into this mess. WE chose to sign a contract that says the company can change the terms at their will.

Also - know you have the option to opt out - yes, that means closing your card, but then you can at least pay it off at the current interest rate.

This is nothing new - I worked for MBNA in 1999 and even THEN (10 years ago!) cc companies were doing this.

As Dave Ramsey says - play with snakes, get bit. We, as consumers, are starting to feel those bites.

 

[msmayor]

Just because something is permissible under the law doesn't mean it is right.

What bothers me about this is it seems like consumers are the only ones expected to learn from this recession - companies are continuing the same short-term thinking that helped create the mess we have now, which makes me think we'll be in for another crisis when the high interest rates drive enough customers to close accounts or default. Then where will the banks turn to start piling on fees to make up for the reduction in CC revenue? Our bank accounts, most likely.

Of course its right. Its just opinions on it that vary.

A business exists to make money and yes, as horrible as it sounds to some, to make as much money as they can.

If anything, CC companies raising their rates to these levels IS doing something about the recession...its teaching consumers to STOP relying on unsecured debt to finance their lives. Its teaching them to learn to live within their means, and not beyond.

You don't like it, don't do business with them. Simple as that. And if you leave your account open because of the fear of the ding on your credit history, you in effect give your tacit approval of their rates and business practices by continuing to remain a customer.

 

[msmayor]

You are absolutely right, because every one knows the poooor credit card companies were barely making a profit before this and their pooor ceo's couldn't afford to put food on the table with the measly salary they were pulling in and who needs a 2.5 million dollar bonus? And of course just because they recently got billions of tax payers dollars along with the fact that they can borrow money from the government at the exorbinant intrest rate of 0%. that is no reason to deny them the right to rape us.

You're absolutely right, how dare us be outraged by practices that in any other industry would be called illegal and in most DA's offices around the country would be called extortion.
Silly us. of course we should allow Chase to do this.

Op, look at it this way. If you have ever needed incentive to get out of debt. That letter was it. That is my first priority for the next year.

How come I never hear any outrage over refund anticipation loans through tax preparation companies? The effective interest rate on some of those 'advances' exceeds 40%!!

Or check cashing places? Payday loans?

Every single one of those businesses are acting within the scope of the laws and regulations currently in place. No one is forced to utilitze them and pay those outrageous fees, and if there weren't people WILLING to pay those fees they wouldn't exist.

 

[princessbride6205]

Just because something is permissible under the law doesn't mean it is right.

What bothers me about this is it seems like consumers are the only ones expected to learn from this recession - companies are continuing the same short-term thinking that helped create the mess we have now, which makes me think we'll be in for another crisis when the high interest rates drive enough customers to close accounts or default. Then where will the banks turn to start piling on fees to make up for the reduction in CC revenue? Our bank accounts, most likely.

Very well said. This recession has taught our family to budget our expenses and save more - what has it taught big corporations?

You don't like it, don't do business with them. Simple as that. And if you leave your account open because of the fear of the ding on your credit history, you in effect give your tacit approval of their rates and business practices by continuing to remain a customer.

But that's part of the problem. Why should consumers be penalized (drop in score) because we don't agree with a change in the company's policy? If it was as simple as closing my account and finding a new card or just using cash, I could accept that. But a decrease to my credit score when I've done nothing other than close a card? Not cool.

 

[MrsPete]

Yeah, doesn't it suck when a company tries to make a profit. Stupid company.

Almost as bad as consumers who are trying to get their debt under control and maintain a budget for their own households.

Of course companies are in business to make money, but when the credit card ADMITS that it's doing it to "maintain profitability", they're saying that they're doing this out of GREED. I'm more interested in my own profitability than the credit card company's.