Yes, I know my title could be better, but it's true! We just received a nasty little surprise from the Chase credit card folks. We've been cardholders for a number of years now, with never a late payment. We had been enjoying a very nice interest rate for a number of years and now they decided to increase it to the usurious level of 19.49%. In reading the notice mailed to us, it said they had used credit bureau information to increase our interest rate over 13% from it's prior level, effective in January 2008. I immediately checked our credit bureau and found nothing amiss. We have paid perfectly to everyone, every time.
I then went to Chase's website, hoping to find out more. That's where I found this little gem of a press release waiting:
"Chase Will No Longer Increase Rates Based on Credit-Bureau Information
WILMINGTON, DE (November 19, 2007) - Today, Chase Card Services announced the expansion of Chase Clear & Simple, an ongoing program designed to help Chase customers better understand and manage their accounts, with the adoption of new, clearer pricing practices.
Chase is eliminating a practice, commonly used in the industry, of increasing interest rates for individual cardholders when their credit-bureau scores decline. This change is effective on March 1, 2008."
Oh, really! I was shocked....here they are cleaning house, perhaps of people like us,with low interest rate cards, before their March 1st "consumer-friendly" lending practices begin. Could we be the only ones....I really doubt it. UPDATE - I am definitely not the only one - check out the various unhappy customers at the Chase Sucks discussion board. Also, Senator Carl Levin of Michigan has launched an inquiry this month (Dec 2007) into these unfair interest rate practices. I will be writing my letter to the Senator today.
Buyer Beware, the adage says, when the actions don't match the words, integrity is certainly not there! I recommend that you stay away from Chase Visa and Chase Mastercard, because their company doesn't stand behind what they are saying.
3 comments:
I am not surprised. SOBs.
Yes, Fab....Bastards! :( I'm also updating the article today to show the Senate is investigating them and the other bastard credit manipulators this month. I'll be writing more letters soon!
Mine also increased from a low rate to 13.24% effective 12/1/07. I've never had a late pay and my credit score hasn't changed. They said that it could be because I had a high debt to available credit ratio. Again, I don't see how that has anything to do with them. My payment history is perfect!
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