Cardmember Services, Chase Bank USA, First USA Continental Mastercard Deceptive Promotional Offering/Business Practices, Zero % interest Check Offers Misleading, Customers Being charged interest on fully paid balances Wilmington, Delaware

Chase Continental Mastercard offers it's cardmembers checks which they can use to purchase things offering "ZERO % INTEREST if Paid by Sept 2010".  As a carbmember who has paid her balance IN FULL for over 10 years with Chase, I used the check and paid the 3% transaction fee to do so.  Any carmember who, as I do, pays their full balance monthly, would assume that by continuing to do so, NO INTEREST would accrue on the account until Sept. of 2010- if the balance of the amount the check(s) were written for is not paid off.  NOT TRUE!!!!!  In additiion to the 3% service fee, Chase takes it upon themselves to use your monthly payment to PAY OFF the amount of the check first, thus charging the full, highest interest rate on your regular monthly charge bill- which you have just paid in full!

Example.

Monthly Charges  $6,500

Promotional Check  $4,000  (zero interest until 9/2010)

Payment  $6,500

Chase takes the $6500, applies it to the $4000 that you just "borrowed" at zero interest until 2010 and then charges 19% interest on the remaining balance.  Therefore, even though you are paying your monthly charges offf, ,they don't apply the money to the  monthly charges, they apply it to the "zero interest until 9/2010" check you just wrote. 

This is a gimmick.  It should be illegal and should be pursued as they are taking advantage of their customers.