• Report: #127700

Complaint Review: Bank One - Chase Manhatten - JP Morgan

  • Submitted: Mon, January 17, 2005
  • Updated: Wed, November 02, 2005

  • Reported By:Littleton Colorado
Bank One - Chase Manhatten - JP Morgan
www.bankone.com Wilmington, Delaware U.S.A.

Bank One, Chase Manhatten, JP Morgan Unyielding - late fees, overlimit fees, outrageous finance charges, unexplained hikes in interest rates! Foul Play! Ripoff! Wilmington Delaware

*UPDATE Employee: we are regulated

*REBUTTAL Individual responds: Bank One/Chase

*Consumer Comment: Chase jacked my APR to 29.9%

*Author of original report: Bank One...NO HELP!

*REBUTTAL Individual responds: Thanks for the advice

*Consumer Suggestion: the banks strike again

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Someone has to stop Bank One before they get completely out of hand. I have been a LOYAL Bank One customer for the past 9 years. Everything was fine and dandy until about 6 months ago (about the time the merger to JP Morgan/Chase Manhattan was announced). I have excellent credit and was never late on my payment and always made the minimum or more each month.

All of the sudden, I have two major hikes in my interest rate: one from 8.9% to 12.9% and then another to 14.9% - there was no explanation to the reasons behind these hikes, only that they were doing them. The last hike came in December and the only notification that I received was their small pamphlet stating that the merger was happening and we might notice changes in rates. How vague.

I was using my card around Christmas time and had approximately $80 left on it to cover the finance charge since Bank One likes to send you over the limit and charge you outrageous fees. Since they hiked up the interest rate in November, finance charges on my account cause me to be over my credit limit. So, not only did I have to make the minimum monthly payment, but also pay the over limit fee of $35 plus, in full, whatever charges were on the account at that time. Of course, I received my bill in the middle of December and I was extremely upset because I knew, for the first time, I could not make the monthly payment due to Christmas.

I immediately called the Customer Service department and closed the account. I was fed up with everything that was happening. I informed the rep that I could not make the minimum payment this month, however, I would send them a payment of $150, what I normally do. He offered me NO options, so I thought he would note it and all would be fine. How stupid of me. In the meantime, I formulated a plan to pay off the credit card, since I am wanting to purchase a home in the next year.

I received my bill for this month and my minimum payment skyrocketed to $433, my finance charge to 26%, PLUS I had a late fee even though I mailed the payment 5-7 days in advance and a over the limit fee to boot, once again due to finance charges. I called the CSC once again and complained again about my bill. The rep I spoke to was as helpful as a gaping wound, so I immediately asked to talk to the manager. I explained to him that I have a good standing with their company for the last 8 years and never once failed to make the minimum payment or was late. He said that he could see that.

I added that the minute I knew I could not make the payment, I called and let them know and was offered NO other options. I also added that I will have the card paid off in 6-7 months and that I plan on making a large payment this month. I told him the hike the interest rate was making it impossible for me to pay off the card - they were already making bank on me and their practices were unfair. He said he could remove the fees, but would have to send my request for a lower interest rate to be reviewed and I would get notification in a week. After reading the complaints, I have no hope they will lower the rate.

To sum up, Bank One is notorious, in my book, by allowing the finance charges to push you over the limit and, in turn, charge you late fees and ask you pay off, in entirity, purchases you had made that month PLUS the finance charge AND expect you to make the payment in full. NOT ONCE was I offered an alternate payment plan for last month to avoid this fiasco.

After learning about the class action lawsuits (which I knew nothing about) and various other complaints, I am disheartened to learn that the company that I have freely done business with the past 8 years is corrupt and unyielding. DO NOT DO BUSINESS with Bank One. You will regret it.

Holly
Littleton, Colorado
U.S.A.

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This report was posted on Ripoff Report on 01/17/2005 11:30 AM and is a permanent record located here: http://www.ripoffreport.com/r/Bank-One-Chase-Manhatten-JP-Morgan/Wilmington-Delaware-19899-8650/Bank-One-Chase-Manhatten-JP-Morgan-Unyielding-late-fees-overlimit-fees-outrageous-fi-127700. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

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REBUTTALS & REPLIES:
0Author 4Consumer 2Employee/Owner
Updates & Rebuttals

#1 UPDATE Employee

we are regulated

AUTHOR: R - (U.S.A.)

Holly, we at bank one/chase appreciate you being loyal to us for the 9 years you had your account. unfortunately, john is correct in saying that if you have high balances on other credit cards the bank can raise your APR. also unfortunately there is no ceiling for interest rates.


also, unfortunately, yes your finance charges can and will bring you over your credit limit if you are close to using all your credit line, because the FC come out of your available credit.

and bank one/chase, as well as every other credit card company, ARE being regulated by the OCC.

R -- usa
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#2 REBUTTAL Individual responds

Bank One/Chase

AUTHOR: Holly - (U.S.A.)

I do not know much about legal processes/cases/claims against Bank One/Chase or other credit card companies. I did contact the BBB and they contacted Bank One ASAP. Bank One sent me this LONG letter regarding my complaint and outlined all their policies (which I could care less about - does not make them fair) and they DID lower my interest rate back down to 14%. I paid off my card and closed my account, washing my hands of them. Luckily, my credit was not damaged by the incident and I have moved on. Chase STILL sends me solicitations to get their credit card! I do not think so...best of luck to you.
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#3 Consumer Comment

Chase jacked my APR to 29.9%

AUTHOR: John - (U.S.A.)

I have had the same problems with Chase, Bank One. I have never been late with any credit card accounts, always in good standing with a credit sore above 700. Chase reviewed my credit history and because I have outstanding credit balances that are high, they jacked my interest rate up from 11.9% to an outrageous 29.9%. There is absolutely no reason for a consumer to be treated like this, and I'm very upset that these credit card (banks) are not being regulated! They have been taking advantage of consumers for too long! I wrote a long letter to the CEO of Chase Bank, and one of their representatives contacted me via phone and was absolutely no help at all! GREAT CUSTOMER SERVICE!

My balance with Chase I keep at ZERO each month. If I have to use the card, I pay off each bill in full. I will not let them make any finance charges off me! In the meantime, I am will be seeking other lower/fixed interest rate cards to transfer other credit balances. You have to try and beat them at their game! I heard of class action suits against credit card companies. How do I go about looking into this process? Thanks.
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#4 Author of original report

Bank One...NO HELP!

AUTHOR: Holly - (U.S.A.)

Well, I called Bank One today because I had not received the promise letter in the mail and I wanted to know the status. I spoke with the CCS and was told that since I closed my account they could not lower my interest rate. Why didn't the supervisor I spoke with know this information? Instead, as I already mentioned, he told me he would submit a request and I would get a letter in the mail in 7-10 days. The rep I spoke with today did not even have anything on file regarding that request to lower my interest rate.

She said they raised my interest rate because of the late fee and overlimit fee, which were dropped, but they could not lower it (more like WILL not lower it). I then politely asked what steps I needed to take or who I could speak with to get the interest rate to a managable level so I could pay this card off. She said no one and the interest rate was as low as it could go.

So, needless to say, I told her that I was going to file a report with the BBB and let them handle it. Once again, NEVER EVER do business with Bank One.
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#5 REBUTTAL Individual responds

Thanks for the advice

AUTHOR: Holly - (U.S.A.)

Matt -
Thanks for your advice. I am well aware that credit card companies can use my credit history against me at any point in time. However, it is completely unfair and unjust for them to hike up my interest rates even though my credit is very good and I am in good standing with ALL my creditors. I think it is a crock and that it should be unlawful - and we are all WELL aware that people get in trouble with credit companies because of these tactics and that companies do this to make a buck. I just wonder how the CEOs sleep at night (do they go home and kick the dog too? Sheesh! Enough is enough!)
I will continue to work with Bank One to resolve this problem. I will even look into what you suggested. Otherwise, I will write the BBB and the FTC and let them handle it. Hopefully this nightmare will have a decent ending.
Cheers!
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#6 Consumer Suggestion

the banks strike again

AUTHOR: Matt - (U.S.A.)

I am not sure of your financial status at the time of these rate increases but the banks have a powerful weapon in the credit card agreement that you signed. It is called the universal default clause. Basically it states that the bank has the right to review your credit report at any time in the life of your credit card account and if they see any late or slow payments on your credit report they can increase your APR (annual percentage rate), lower your credit limit (even if this pushes you over limit) and close your account.
Remeber this decision is made on your credit report and how you handle OTHER accounts. So in essence the bank can penalize you for you other accounts even if you have nevr been late with them. This is another way for banks to ensure that you are in debt to them forever.
My advice to you is to speak with their colleciton department and inquire about a settlement on the account (a reduced amount payoff in one lump sum) Bank One will generally settle your account at 70% of the balance. Remeber to get any settlement agreement in writing PRIOR to making your payment.
One other piece of interesting info: if you have a $2,000 balance on a credit card and only make the min payment it will take you approx 23 years to pay it off.
I hope this info at least sheds a little light on the situiation. Good luck with the purchase of your new home this year!
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