Chase Credit Card Chase trying to eliminate low lifetime interest rates by increasing payment from 2% to 5% Wilmington Delaware

This is not a policy being started by the credit card companies. Your complaint should be with the government. Do a little research, the government, specifically the office of the comptroller of the currency, has pressured credit card companies in to raising minimum payments.

Why would a credit card company WANT to raise your minimum payment? Why would they WANT you in default? Both of these cost them money, not make them money.

Credit card companies would rather LOWER minimum payments in order to get more money out of the interest you pay. The government realized this a few years ago and started passing laws to force credit card companies to raise minimum payments.

You should be angry at the government over this issue, not chase.

You are almost correct in your rebuttal regarding the government requiring credit card companies to raise min payments.

1. This suggestion from the feds was in July of 2005, and was to help consumers pay off their cards sooner.

2. The suggestion was to go from 2% to 4%. Or pay the total interest due plus 1%.

3. This was not enforced and many credit card companies simply ignored it for the very reasons you stated. They wanted long time customers with high interest rates to be paying them forever.

4. Then came the offers from Chase, (Actually Chase bought out another bank who made the offer) of 4.99% for the life of the loan, or 5.99%. whatever. But it was a very low interest loan.

5. people who took advantage of this offer and pay their min balance and interest on time are not subject to huge rate increases.

6. Chase came out with another caveat that you now need to use your card and put on it a total $2,500 in purchases at the 29% interest rate or you lose your 5.99% rate on your current balance.

7. So we quit using the Chase card as we did not want to be subject to the 29% interest rate.

8. We also received a notice in the mail that our card will be going up to the 5% minimum due. Why because they are not making any money on us. We have an average of 5% interest on $20,000. (we remodeled our kitchen) so our payments will go up from $500 a month to 1100.00. over double.

9. if you read the reports on the government action back in 2005 this is exactly what they did not want to happen, but Chase is using a loophole to get rid of the low interest card holders.

http://www.consumeraffairs.com/news04/2009/07/new_credit_rules.html

Read that. The whole reason the credit card companies are doing this is because of the new government rules. If the government would have left things alone, you would still have your 2% payment, and all these other people complaining would not see their rates going up. The government is just making things worse for people.

Do a search for complaints regarding Chase ($10/mo fee, 5% repayment amounts, whatever). Its amazing just how many folks that come to Chase's defense live in Springfield, MO. Humm, Chase has a customer service center in Springfield, MO. Just say'n.

Chase likes to try and point to the fed saying its the fed that is making them do it. It isn't. Of course, if you want to keep paying at only 2%, seems you can, but at a greatly increased APR. The increased APR, along with the 2% repayment terms greatly INCREASES the amount of time it takes to pay off the balance. I'd say that defeats the "The government made me do it" claim.

I just got off the phone with our AG's office. Our state is continuing to pursue Chase based upon these antics, as well as for those of us that originally got screwed with the unlawful $10/mo charge coupled with the 5% repayment amounts. If you are a victim of Chase's latest practice, I'd recommend you contact your state's AG's office (consumer protection) and let them hear your story.

yes, chase does have a major office in springfield, I live about 2 miles from it. My spouse used to work there about 3 years ago. Thus I have some insight to how they work.

I have not ever worked in the banking industry myself, i work in quality control.

I know chase claims its the government, but so do all the other credit card companies. The regulations coming down from congress to help customers out, is cutting in to the bank's profit margins. Of course they are going to raise rates. Of course they want more people to default. If the government would have just left things alone, we could all still have our 2% payments with our 5% rates.

This is all happening now because the new credit card rules go in to effect in august. The companies are raising rates and payments before the new rules go in effect that say they cannot do that. Its not just chase, capitol one and many others are doing the same thing. After august they have to follow a bunch of new rules to change people's rates and payments, right now they don't so they are preemptively changing the rules before they cannot.

So I stand by my statement, blame the government their new laws to protect us, are just making things worse.

I have read everyones posting on this matter, The goverment told chase to increase rates on fixed APR? Thats not what supervisor said to me. I  accepted 3.99 4.99 and 5.99 % on balance tranfers for the life of the loan. With a processing fee for the transaction too. When I called about payment going from 2% to 5% I was told the bank is not making money on the low promotional APR 3.99 4.99 5.99 with statements, reporting to credit bureaus, postage the bank is losing money with those pomotional balances this coming from a supervisor. Never missing a payment or being late, sending over min amount due. I was advise I could have 2% back if I agree to let them drop all promotional rates and take 7.99% till August of 2011 and will be almost double that interest rate after that I bet . Which one did you agree on when you did your tranfers

A typical offer presented the customer with two options:

1. The customer could accept a 0% fixed rate for a specified period of time, such as one year. After that time, the Annual Percentage Rate (APR) on the loan would increase. Or,
2. The customer could accept a loan with a higher APR, such as 3.99%, that is a "fixed APR until the balance is paid in full."

Where did it say they can increasethe Apr on a fixed APR until the balance is paid in full ???

I did have to accept the 7.99 % but I also joined class action against them. I'm fighting back.

All credit card companies are crooks.  While we like to waste so much time complaining about the mortgage companies that gave out loans they shouldn't have or how Americans aren't buying their own cars, the credit cards companies seem to get by without much complaining or getting any of the blame.  While in fact, they deserve every bit as much blame for the shape this country is in.  Dirty tricks like the one you just described cause people to get into credit card debt and, in turn, contributing to them defaulting on their home loans.

All I have to say is that they are as crooked as any business in this country today.

Chase got me too.  I had this 1.99% until paid off account well before Chase bought the card from Citi.  Now they suddenly update how quickly they want me to pay it off, from 2% to 5%.  Of course they want me to pay it off quickly, they don't want to give me money at 1.99% when they can sell it to someone else for much more.  They may as well tell me that I have to pay off 100%.  I'm going to join the class action suit if I can and I'll also contact the state attorney general.  I wonder if they're doing this to all their accounts or only the low interest rate ones?