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Chase Imposes New Fee

JPMorgan Chase has started charging 400,000 credit card customers a stiff, new fee of $10 monthly fee — or $120 a year.

The new fee was imposed on customers who had carried a significant balance for two years or more on a card with a low promotional interest rate of something like 4.99%.

Did we mention that Chase is also raising the minimum payment on those cards from 2% to 5% of the balance?

A spokeswoman told USA Today that the nation’s largest credit card issuer is being a “responsible, careful” lender.

Which means what? That customers who qualified for a great deal a couple of years ago are now credit risks, and deserve to pay higher fees, because they wouldn’t reduce their debt?

Cardholders who called to complain were told they could avoid the fee and larger minimum payments if they accepted a higher 7.99% interest rate on the promotional balance.

Comments (6)
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6 Existing Comments
  1. Ed Young said:
    on February 23rd at 12:15 am

    What you didn’t report was the 4.99% loan was advertised for the “life” of the loan. I paid off my balance and closed my account.

  2. Armen Tatevosian said:
    on February 23rd at 05:46 pm

    I would read the Terms and Conditions of my promotional offer VERY closely. Many from a few years back, don’t actually allow them to do this to your account. Some do! Mine reads that terms will change, based on my (current) account standing, and ontime payment history. Some say at their discretion – THAT IS BAD! I never accept promos with those terms. Bank of America was NOTORIOUS for that!

  3. Armen Tatevosian said:
    on February 23rd at 05:52 pm

    Ed & Others – THEY WANT FOR YOU TO PAY IT OFF AND LEAVE; THEY WANT YOUR RISK GONE! Don’t do it! Stand your ground, and use what documentation you have to support your dispute. If you have no documentation – negotiate! They fear your default, to tell’em you’ll have to now. Depending on your balance, a payment could raise by a few hundred dollars each month.

  4. max said:
    on February 25th at 11:02 am

    I was hit was this. I AM NOT A CREDIT RISK. NEVER LATE OR DEFAULTED. I called and complain. I said its because I am not paying you guys enough interest. So I paid off the 1k balance. it was 7k 2 years ago. Not only did I pay it off on time but faster than they would like. I truely believe I was not paying them enough money and they want to get as much money as possible out of me to pay for other morons they offer credit to.

  5. "Bob" said:
    on March 29th at 08:44 pm

    My credit card minimum payment trippled on my 3.99% till pay off card. Don’t let them bully you…. the key words are “liquidate the account”. (Close it and pay it off)