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A guest post over at DebtFREE-Revolution (Is the Credit Card Companies’ Universal Default Clause at Risk?) sparked a response e-mail from a Chase PR rep;
I saw your post today on Chase's pricing policy change and just wanted to clarify that we do not raise rates based on credit bureau information.
You can find a press release about it here: Chase Press Releases (see the November 2007 release).
We believe this policy change will give us an advantage over our competitors.
I commend you on the content of both of your blogs. It's critical to help people better understand their finances and spend responsibly.... etc, etc.
A very nice e-mail correcting my post, about how Chase no longer raises interest rates based on your credit report. The actual report is located here for full details. The takeaway is As of March 1st, 2008, Chase will no longer raise interest rates when credit scores change.
Oh, But I Beg to Differ
Coincidentally, this month one of my two Chase credit cards moved from a promotional 1.99% APR to the 'normal' rate. And to my surprise, I found out that the 'normal' rate for the credit card moved to 25.25%. Now that's three to four times HIGHER than any other credit card rate that I have. Needless to say, I was a bit mystified.
I decided to call the Chase customer service line (after I IMMEDIATELY PAID OFF the balances!!) and asked why the rate was so high.
The CR checked my account, found that I've been a loyal Chase customer for a number of years, and other than a couple of credit over-the-limit instances (which he assured me didn't trigger the rate increase) that there was no reason he could see why the rate was so high. However, after a little more investigating, he declared that there was nothing they could do about lowering my rate.
Now I'm not only curious, but a little peeved. I,..
- Am a long-term Chase customer
- Am a person that WAS carrying a large balance
- Am a person that never pays late (Automated payments, automated billing, etc)
- Always paid more than the minimums (but didn't pay entirely, mainly because of the intro 1.99% rate)
- Used my Chase card occasionally, if not every day.
So how did I get relegated to Interest Rate Hell?
The answer I got was that it must be something on my Credit Report that had triggered the increase.
But, But, You Said,..
So I proceeded to remind him about the Chase press announcement (Chase Will No Longer Increase Rates Based on Credit-Bureau Information) and that this rate increase was CLEARLY after the March 1st deadline.
The response was a stammering no-response. The CR had nothing to say to that statement, nor had any other valid responses as to why my credit interest rate was so high.
I then asked when the OTHER Chase account I have (remember, I mentioned I had two) was due to change from the promotional rate to the 'normal' rate. - July.
At that point, I asked what the rate was changing to after the promotion was over. - 8.99%!!!
(After picking up my jaw from the floor) I asked, "Why the difference in account interest rates for the same company, and the same person, with about the same credit limit, and the same length of time of account history?"
Uneasy silence.
At that point I semi-politely hung up on the CR and VERIFIED that the account was in the process of being paid off via Bank of America transfer.
I Can See No Other Conclusion
So to summarize, either
A) I was DIRECTLY lied to by Chase and their PR department (as is anyone else affected by this little debacle) or
B) They are basing increases in credit interest rate on something OTHER than Credit Scores, and not willing or able to reveal what that secretive screening process is.
Not sure I like either choice.
Either way, Thanks to Chase for 'incentivizing' me to empty another credit card I can toss into the growing pile at the bottom of the sock drawer, never to be used again. And in another couple of months, it's brother will join it, so it won't be lonely. Bye bye Chase, you've lost another long-term customer!
Do you have Horror Stories related to Chase and their credit card practices? We'd love to hear about them. leave us a comment and let us know.
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April 21st, 2008 at 7:14 pm
I hate credit card companies. Have I ever mentioned that?
Sorry that happened to you. And shame on Chase for not having a better answer for you.
Lynnae's last blog post..(Not) Keeping Up With Our Parents - The Rise and Fall of the Middle Class
April 21st, 2008 at 8:19 pm
Ever since Chase refuses to increase the limit on my Visa card from the paltry $2200 that it has been stuck at for 7 years, I refuse to do business with them. I have multiple cards with limits in the $40-50k range... and have no use for a $2200 limit card. They lost a valuable customer by refusing to use common sense. The fact that their customer service is horrible is just another nail in the coffin. What a horrid bank.
Llama Money's last blog post..Budget Busters
April 21st, 2008 at 8:27 pm
Am I the only one who ISN'T surprised by this? Basically you got "rate-jacked" for no good reason, something BofA has done to their customers a few times (weren't you one of them?). You *don't* have to put up with this kind of abuse: pay the stupid things off and get on with your life - WITHOUT the credit cards!
Debt Free Revolution's last blog post..Reusable Shopping Bags at Kroger
April 21st, 2008 at 8:32 pm
Bad business.
April 21st, 2008 at 9:03 pm
Ohhhh, SO MAD. I hate Chase and I always have. I got one Chase card a few years ago through Starbucks (the Sbux Chase Visa). Dumb choice. I STARTED out with a 25% interest rate. All my other cards were somewhere between 11 and 14% and I called to ask them if I could lower my rates... they told me no and whn I asked why their rate was like 14 points higher than any of my other cards, they had the same answer for me - must be something on my credit report. My credit score at the time was 680 - not really something to justify such an atrocious rate.
Once, many months later I paid my bill too late. I mailed it in about three days before the due date, and apparently it got there a day after the due date. I was in a bad place, hardly able to make minimum payments to any of my cards, at the time, and expected to be late on that one, but it was the best I could do at the time. The DAY the bill as due, this one guy with a thick accent called me from Chase hassling me about my bill and prodding me to tell him why it was late. I just told him "it is late this month. so be it!" but he wouldn't liten. He called three times before I finally stopped answering. What jerks.
This is why it outrages me when people say they'll just use credit cards but pay them off in full each month. EVEN IF you pay it of in full, hat if suddenly you can't? All it takes is one mishap and you could be dealing with the wolves again! I personally just don't want that in my life. EVER.
:/
Shanti @ Antishay's last blog post..Spend 100% Of Your Money - Be Your Own Boss and Employee (GP)
April 21st, 2008 at 9:17 pm
Yep, they rate-jacked Micah to 29.9%. I'm not sure why. Obviously, it's been paid off in full and that sucker's just chilling in our dresser drawer since.
April 22nd, 2008 at 5:19 am
That's horrible on how they are treating you!
Laura's last blog post..Cutting the Cable Bill
April 24th, 2008 at 9:07 am
Here's the funny thing.
It's all because of the housing market. Folks are relying more on CC companies just to live. They realize that they can no longer get money from folks with crappy credit, so they jack on the rates on folks with good credit.
It's not just Chase.
Baz L's last blog post..Stupid Texas Weather
May 1st, 2008 at 4:21 pm
Whoooo Hooooo! My Chase MP APR just got lowered from 29.99% to 29.49%! I called to see if they could lower it any further, but of course no. I pay on time and pay multiple times a month, but they don't think I'm responsible enough.
May 2nd, 2008 at 10:35 am
I don't suppose they jacked your rate because you're bad-mouthing them on a blog?
MITBeta @ Don't Feed The Alligators's last blog post..Missed Paycheck
May 2nd, 2008 at 12:19 pm
I just went ahead and paid them off.