Watch your credit cards

[Bonibelle]

I guess this only pertains to hot tubs if you bought your tub using a Chase credit card, but it may apply to other cards as well.  I had financed something on my Chase card at 3.9% for the life of the loan. I never used the card, instead treated it as a loan and had it set to auto pay each month from my bill payer. So I didn't really pay attention to my statements since I knew I had everything covered. When another card (Kohls) changed the pay date, I checked my Chase statement. This month, they doubled my minimum payment and added a $10.00 a month service charge. If I hadn't checked, they would have hit me with a late fee because I was under the new minimum by $32.00!! Needless to say, I immediaely paid that card off and gave them a piece of my mind....The representative  reminded me that  the call was being recorded after I let loose with lots of very nasty verbage...so I said good you can listen to it again whenever you wonder how the real people that are paying taxes to bail the stinkin banks out only to be screwed by them feel!!! Wooo..can't believe I am this angry!! I can't believe what I just said to this poor woman on the phone

[96SC]

Congratulations, Boni.  I have always wished some of my complaints were recorded, DirecTV comes to mind,   (I know they say they 'may be recorded' but I doubt if many are). When more folks learn they are getting it stuck to them, the lady may wish all the complaints were as 'calm' as you were.

Did the lady give you a number to call if you have any more questions?  Call her back and give her a second ear full then ask to speak to her supervisor, share the 'warmth'.

[Bonibelle]

As I read over what I typed...wow, it hardly makes sence..I was so mad and had no one else to yell at!!Haha..I am over all that now and happy to be rid of my Chase account. I think what makes me angry in general is that I am a good credit risk. I pay my bills on time, I didn't buy a home with a mortgage that I couldn't afford. I pay my taxes and my husband works very hard for his money...So why is it the people who do what they are supposed to do, get the short end of the stick? There are bail outs for the banks and the people who don't know that they can't afford a 500,000.00 home on a 50,000 a year salary...yet the regular people who pay their bills get screwed!...that makes me angry  

[Vinny]

I have my wife's car on a Chase credit card ... got 4.99% financing when all the others were at 7+%.

I hear you Boni - Chase was running a 4 3/8%, 15 year mortgage a few weeks back and by the time I got to it it was at 4 7/8%. My mortgage is at 5 7/8% - not too bad but its a 30 year.

I told the guy that I want TARP money for all the reasons you stated. I want a 4% mortage because my credit is excellent. I told him to contact Jamie Diamon, the CEO of JP Morgan Chase and tell him I want a really low mortgage rate. The guy laughed and said he knew what I mean.

Funny thing as they asked me questions about my financial health and I told him - all he saw was $$$ commission coming to him. Chase has high fees for lending and their brokerage arm doesn't want people who know about the market - they just want people to give them money and they invest it for them - I don't think I'll be getting a mortgage through Chase!

Thanks for the heads up!

[Bonibelle]

I would never apply for a credit card that charges you just to have it. They can change the pay dates and the interest rates, but it is totally unfair to add a service fee if that wasn't agreed upon when the card was issued. Anyway, I am getting rid of all my credit cards and that probably will ruin my credit rating... but I will be rid of all of them once and for all ....

My advice...join a credit union  

[ndabunka]

Bonnie - Don't "close" the credit card accounts.  Just pay them off and leave the card in a desk drawer.  You won't care WHAT they do with the intereste rates because you won't owe them anything on those cards.  Late payments on Zero = zero so who cares.  Keeping them "open" but unused gives your credit score those dollars as "potential" credit and is a good thing (even for a crappy company like Chase).

On the Mortgages... For those who may not be aware a number of companies (including North Carolina's BB&T) had 30 year re-finance rates as low as 4.75% (with no points for well qualified owners) about 3 weeks ago.  My current 30-year is about 7 years in and is at 5.375% so it would take one of the 4.5%'s to get my interest and they may still get there (at least that is what the government is trying to influence).  Typically, the 30yr rates follow the gov't treasury bills about 2 points higher (MAX) and that allows the banks the ability to make decent money (basically for free).  However, the spread TODAY (and for the past 2 months) has been closer to 3 points which means that the banks are making/charging more than they SHOULD be for 30 year loans (to excellent credit owners).  Greedy SOB's.

So, I have a salivating mort broker as well watching the rates ready to call me once they get close to 4.75% again.  I really want to (hopefully) wait until the 4.5% target becomes a reality but I expect that if it does, it will be one of those things that is only viable for about 2 days before it disappears again.  And even then will require things like 35% equity in home, 740+ credit rating, 5yr Income history, etc.  All within range for good, responsible borrowers... theoretically...

[Bonibelle]

But Nada, they are going to charge me $120.00  year just to have that card sitting in my desk!
And I am betting that is why they started that because they know that people don't want to damage their credit ratings by closing accounts.

Seriously, if you can join a credit union, that is your best bet. I called for an equity line to pay off all my debt and the current variable rate is 2.5%...I am making more than that in CD's..right now, so that is really a bargain.

[thearm]

Boni,
You are right in cancelling the card. I had the same thing happen with chase. I used the card once to get a $50 rebate and never used it again. I happened to open another chase account for a rebate and when I went to pay it off I noticed there was a charge on the other card. When I called to check on this they told me they had instituted a annual charge! I never checked the statement because I had only used it once and then payed it off. Be sure and check all of your cc statements because I am sure soon everyone will be following suit. Also you are right on with jointing a credit union. The one I am a member of and have my mortgage with gave a rebate based on how much interest you paid during the year because they had a great year. Never see any banks do this. They just want you and me to give them more money in a bailout.  

[Richs100]

Boni, I am not at all surprised with your experience with Chase.  I did a balance transfer on a card at 3.99% for the lifetime of the loan.  I then made the mistake of putting that card in my wallet and charged a few minor things the following month which originally totalled about $300.00.  I made my usual large monthly payments to pay down the transfer, but after several months I noticed that the overall interest rate on the card had crept up to about 5%.  I also noticed that despite my large monthly payments, that $300.00 in purchases was clocking an interest rate of 24.99% and the principal balance on the original $300 was actually increasing each month.

I called Chase and asked them what was going on.  They advised that that $300.00 would continue to grow each month and there was nothing I could do about.  I told them there was and paid the card off.   BTW, I have excellent credit, a good income and relatively little debt.  I just don't understand their business model, but I guess it works for them when they are successful in trapping someone who can't afford to get away from them.

Another card I've had for years was recently bought by Chase.  I got a notice in the mail this month that the rate was jumping from 9.99% to 23%.  I called them and they said it wasn't just me, but everyone with the card was getting the jump.  Fortunately, I had a small balance on that one.  So, I've now shut down two cards.  Way to grow your business, Chase!

So, no more business for Chase from me.  They are snakes.  And it's too bad that the banks were able to buy off Congress for a delay til 2011 of that Credit Card Bill of Rights which was passed last year.  Expect a lot more of this until the law takes effect (or is further watered down).  

I am so thankful I have the ability to side-step these arrows.  But, with what's happening in our economy right now, I'm sure there are a lot of people who can't, and they will be pushed closer to the edge by these tactics.  Hope there's a special room in Hell for these guys!

Rich

[Bonibelle]

No one likes to feel alone..Chase thank you, I have tons and tons of Chase customers who have the same situation. http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html

I wrote to Chase and their answer was basically, tough beans we can do whatever we want..
I can too...and I closed that account this morning..

[Richs100]

It's really a shame, too.  
My first car loan was with Chase Manhatten back when I was eighteen.  So, I have been a customer of theirs for over thirty years.  That apparently means nothing to these bozos running the company now.

[96SC]

I sent my son, who is working on his MBA, a note on how Chase has been 'messing' with their clients.  He sent me a link on credit account closings etc.  It doesn't talk about the finance charge increase but some of you may like to read it.  I am NOT in the banking business, financial analyst, or credit card business, I'm just sending this along....don't shoot the messanger.
http://www.smartmoney.com/Spending/Deals/Credit-Card-Issuers-Buy-Something-Or-Else/

[ndabunka]

But Nada, they are going to charge me $120.00  year just to have that card sitting in my desk!
And I am betting that is why they started that because they know that people don't want to damage their credit ratings by closing accounts.

Seriously, if you can join a credit union, that is your best bet. I called for an equity line to pay off all my debt and the current variable rate is 2.5%...I am making more than that in CD's..right now, so that is really a bargain.

Ah, I didn't realize that they were also trying to charge you a yearly fee.  I too cancel all CC's that have yearly fees associated with them.  The plain FACT is that there are FAR too many that do NOT charge such yearly fees.

In regards to the article quoted above me, I personally think it's a GOOD idea for the CC companies to actually practice (some kind) of due diligence (i.e. cancelling cards that haven't been used in over a year qualifies as a legit effort on their part).  However, lowering credit on people with exceptional credit is UNJUSTIFIABLE!

[Gary]

I have a Chase credit card (airline miles) I do not carry a balance but they did want to charge me a $60 annual fee for having the privilege of using their card. I asked them to drop it and they did.

I have two other credit cards and had that fee dropped also. No balance on them either.

I did give Chase a shot at my home refinance last year but they were too high, the best they could offer was 5.75% on a 15-year note and my credit score is over 800. I ended up going through a local bank and got 5.1% for a 15-year.

[rcnitro]

I know this is kinda dredging up an old post but I thought I would share my experience with Chase. We have carried a CC with them for about 8 years now and never had an issue. We have never had a single late payment on ANY of our bills. Our rate has always been 8.99% fixed. Until today! Got our statement and now our rate has jumped to 15.5% variable. So I give them a call and see what is up. The girl tells me they sent a letter about it in June. Sorry but never got it chick! I asked if she could prove they sent it, of course she said it shows they did in their computer. I then asked what was their reasoning and she proceeded to tell me it was due to economic conditions. What crap!! I then told her that it was so great for our government to bail them out only to turn around and screw responsible people. Regardless my rate is not getting changed! It just really chaps my ass the way these companies can treat good, financially responsible, tax paying citizens. I know the rate isnt as horrible as it could be but my wife and I work hard to take care of our credit and always make sure our bills are paid on time. OK...done with my rant now.