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Chase changes terms on other cards

Judging by what we’ve heard from unhappy Chase credit card holders, the bank has been busy sending out “change in terms” letters the past few weeks.

We already told you about the $10 monthly fee and higher minimum payment imposed on 400,000 accounts.

Now we’re told that interest rates were boosted on “Prime Plus” cards, as well.

The interest rate customers pay is determined by adding a premium (the “Plus” part of the name) to the prevailing prime rate.

Those cardholders might have expected to benefit from the Federal Reserve pushing the prime rate down to 3.25%. But no, Chase is increasing the premium.

The reason? At least Chase is honest about that in its letter: “The principal factor we considered in amending your account is maintaining profitability on your account.”

Of course you can refuse to accept the new terms, but Chase will close your account and void any unused points or miles.

The nation’s largest credit card provider also imposed a $10 monthly fee on 400,000 accounts that have carried a significant balance for more than two years on cards with low promotional rates.

We’ve also heard from Washington Mutual customers whose accounts have been transferred to Chase because it bought the thrift last fall.

One customer told us their rate was being raised from 9.99% to 25.99%.

We can understand why credit card companies come down hard on customers who don’t pay their bills. But it’s tough to imagine why they’re being so tough on so many customers who are paying their bills.

This recession won’t last forever, and when it’s over, folks are going to be remember how they were treated.

Comments (10)
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10 Existing Comments
  1. Amulekone said:
    on February 27th at 01:05 pm

    I dont understand why credit card companies come down hard on it’s clients. And changing the terms is way out of line, imposing it is horrible.
    Clients should not accept this change

  2. John Dial said:
    on March 1st at 10:26 am

    IT’S ROBBERY!! My interest rate went from 9.99% to 27.35%!! Once I get my balance transferred, I do not intend to do business with Chase any longer. I hope others are having better fortune with there accounts.

  3. Jim said:
    on April 27th at 10:25 pm

    Well Chase is not the only bank doing that- Bank of America raised my rate from 7.99% to 29.99% for being 4-5 days late on a payment !! And I always make my payments, I was just late 1 or 2 times in three years !!! The companies doing this (OUT OF GREED) should be denied any Government assistance and somehow FINED for a new way of “PRICE GOUGING” the American People-those CEO’s who are making these changes are following in the same footsteps of those who SOLD THIS COUNTRY OUT AND CAUSED US TO GO INTO NOT A RECESSION BUT A DEPRESSION!!!! -Mark my words-it will only GET WORSE !

  4. Sandi Horton said:
    on August 1st at 10:37 am

    Chase is not the only bank doing this. Citicards raised my 4.99 rate to 25.99 without ever having a late payment. So, I got a good rate from my other credit card, Chase, a year ago for 3.99 until the balance was paid in full. Now I got a terms are changing letter from chase raising my interest rate to 12.99 plus prime (currently 16.24). Well, it also said on that letter that Remember: your promotional rate will be unchanged as long as you adhere to the terms and conditions of your promotional rate (which I always have). When I called Chase to make sure that was correct, the very hard to understand Indian woman told me that was not correct and the new variable rate would to my entire card balance. I closed the account. This now leaves me with no credit card for emergency purposes. I will never back with Citicards or Chase again!

  5. Laura B said:
    on October 10th at 10:54 am

    Chase did not process one of my online payment I made (their fault), therefore when I caught it my payment was ONE day late, and they blammed me for not writing down the confirmation #, even though they did not do their jobs. This meant that b/c of the “late payment” (which technically was not a late payment), I “breached my contract” and needed to start paying interest (I had 0% APR for 1 year on a balance transfer). They refused to do anything about it….terrible customer service….. I refused to pay them any interest, so I borrowed money from someone to pay off the credit card thinking the nightmare was over…..boy was I wrong….they cancelled my account (which I have no problem, but it looks bad on my credit report) and NOW there is no balance and they are charging me a $1 finance fee b/c I did not pay off the whole balance in one sitting……I can go on forever….I have never felt so cheated and this is ROBBERY of good people, who pay their bils, who are trying to get out of debt….I am furious w/ Chase and will NEVER do business with them again….I hope others feel the same way! I have many other credit cards who work w/ you, and I will stick w/ them…..

  6. A. Reid said:
    on February 16th at 09:11 pm

    CHASE is nothing but criminal. I was never late on a payment, and often made double monthly payments. Still, my APR was raised to 29.24% ! I am searching the best credit card or credit union to transfer my balance. I will also get rid of my CHASE checking account. Thieves!

  7. Jane said:
    on March 10th at 07:47 am

    I was overextended with credit card debt at one time (but was still making at least the minimum payments on time). Other financial institutions worked with me when I entered a debt repayment plan but Chase Manhattan was horrible. I paid off and closed all but one account and will never do business with Chase again. I was happy with a low-rate credit card with Capital One but when they proposed a rate increase (despite no late payments) I made that account inactive and I’m paying it off. My one active account is with Bank of America.
    I probably should have started a credit union account a long time ago and urge others to consider using reputable credit unions for savings and loans.

  8. Joan Eger said:
    on April 10th at 11:08 am

    If the credit card company was at fault and the person you are speaking with inisits that you are at fault for a cococted reason, hang up and call right back and speak to another representative. They will usually listen to reason. I have had to do his 3 times for Citibank, and twice for Discover.
    All were reversed and returned to the lower agreed upon rate.

  9. L Meister said:
    on February 5th at 07:27 am

    Powerful banks are nothing more than sharks who prey on the weak(other banks & you included.)

  10. L Meister said:
    on February 5th at 07:30 am

    This shows some of they’re battles. Not fought with honor, but rather ruthlessly to the top. It’s no wonder they treat “customers” the way they do.Otherwise they would have disappeared along with other banks like WaMu, etc.
    http://en.wikipedia.org/wiki/JPMorgan_Chase