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Chase Won’t Take ‘No’ For An Answer

Lawsuit over Chase credit card policy
Let’s say you get a notice that the interest rate on your Chase credit card is going up.

You send Chase a letter rejecting the increase and close the account so that you can repay your balance at the current, lower interest rate.

You’re done dealing with Chase, right?

Maybe not.

According a lawsuit recently filed in federal court, cardholder Barry Woldman of suburban Chicago rejected Chase’s “change of terms” and closed his account in March 2009.

But in August 2009, Chase sent him another change of terms, which Woldman did nothing about because he had already closed his account.

Chase allegedly took this to mean that he accepted the new terms and raised the interest rate on the balance of the closed card.

Now, who in their right mind would agree to a higher interest rate on a closed credit card account?

No one.

Woldman rejected a rate increase once. Why should he have to go to all of the trouble of rejecting it again?

And what if he had rejected it? Following Chase’s logic it could send him one change notice after another, as often as it wanted, until he finally missed one.

These are the kinds of deceptive credit card policies that have consumers hopping mad over how they’re being treated and vowing that there will never, ever, ever be another bank bailout.

We asked Chase if this is really what happened, but it declined to comment on pending litigation.

If the same thing happened to you, you can discuss joining the lawsuit by contacting attorney Adam Levitt of Wolf, Haldenstein, Alder, Freeman & Hertz.

Comments (3)
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  1. Nathan said:
    on July 13th at 09:49 pm

    If the account is closed it doesn’t matter if the rate goes up or not. This sounds like one of those late night lawyer advertisements.

  2. LeanToRight said:
    on July 14th at 12:16 pm

    Of course it matters. When an account is closed, that just means you can’t use your card again. You still have to payoff the balance. And the rate you’re charged make a big difference in how much interest you’ll pay and how long it will take to get debt free. Duh.

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