Chase Bank Credit Card Chase has recently added a "service fee" for those with whom they have agreed to give a LIFETIME FIXED INTEREST RATE ON PROMOTIONAL CREDIT CARD TRANSACTIONS Wilmington Delaware

Please read the information below. Chase is not the only credit card issuer doing this as they are being required by the the federal government. I have copied information in here regarding this information. The first paragraph is from a different source than the rest of the information. The bottom line is this is a result of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and your credit card minimum payments rise. Some credit card issuers have not been complying with this and are now being forced to comply.


Under pressure from government regulators, banks are raising the minimum payments cardholders are required to make each month. The move is intended to reduce the nation's long-term debt; but in the short-term, consumers are feeling the pinch when the credit-card bill arrives.


Today, your credit card minimum payment is usually between 2% to 2.5% of the total debt on your credit card. If you were to pay the minimum payment every month today on $10,000.00 of credit card debt at 18% APR, it would take you more than 50 years, 601 payments in total, to pay off your debt, and you would pay an extra $29,000.00 in interest charges to the bank for the privilege of using their money.

By the end of March 2006, major card issuers nationwide will be increasing their minimum payments to effectively 4% of the total debt each month, which for the estimated 50 million Americans who are paying the minimum payment each month may mean that their credit card minimum payment will double. Regulators argue that by paying 4% credit card minimum payments versus 2% credit card minimum payments, you the consumer will be able to pay off your debts more quickly, if you can come up with the extra money each month! Taking the above example of $10,000.00 at 18% APR, you would be able to pay off your credit card debt with a 4% minimum payment in as little as 15 years, and you would pay less than $6,000.00 in interest fees to the bank. That's a savings of over $23,000.00 versus a 2% minimum payment.

Sounds great right? Higher credit card minimum payments can help you get out of debt faster than lower minimum payments, but there is one catch. You need to pay twice as much every month. So if your minimum payment is currently $400.00, you'll need to find another $400.00 per month just to keep up with the new minimums. Even if your bank does not increase your rates this coming month, it's only a matter of time before they are drawn into compliance with the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 and your credit card minimum payments rise.

John,

Unless your cardholder agreement specifically states they can charge you a "monthly fee", you can dispute it. Legally.

What, EXACTLY does your cardholder agreement say???

STAY OFF THE PHONE!!

Do everything in writing, and by certified mail, return reciept requested!! This is VERY important. And, DEMAND that they put everything in writing as well. Refuse calls from them. Make a paper trail!!

While "in dispute" you can deduct the $10 fee from your payment.

ALL banks are in financial trouble right now, and are finding clever ways to get your money. DO NOT let them get away with it!!

They hold you hostage by means of threats of damage to your credit score, etc.

They tried this with me, and I simply walked away. Then they got nothing, and I learned how to live with my bad credit score, until I rebuilt it! And...they still got NOTHING!!