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.