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Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

Wednesday Apr 1, 2009

In his effort to claim credit for Chase's relatively minor concession, the New York AG actually provides Chase political cover to rewrite offers accepted and honored by hundreds of thousands of cardholders. First a bit of background. Last November, Chase credit card division notified some 400,000 cardholders that ...

How to Find the Best Credit Card for You

Friday Dec 12, 2008

In the market for a new credit card? Asking yourself "how can I find the best credit card available?" Our credit card guru, Dave Hanson, offers some advice on how to find the best credit card out there.

Guru Q&A: How Does Debt Reduction Work?

Thursday Dec 11, 2008

Do you feel yourself sinking under your debt? The best thing you can do is proactively address the p...

Getting the Credit (Card) You Deserve

Thursday Aug 14, 2008

Anyone with an active mailing address - and that even includes our furry friends - knows that there ...

Recent Comments

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

David R Hanson

FiLife Contributor

David R Hanson said

8 days ago

Again thank you kjkroop. Your experience is important news in this ongoing story. If you are willing, please contact me at the address I gave above. You need not disclose your identity, and you (or anyone else similarly situated) has my personal assurance of complete confidentiality.

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

FiLifer

8 days ago

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

David R Hanson

FiLife Contributor

David R Hanson said

9 days ago

Thanks again kjkroop. What rate were you at before Chase increased it?

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

FiLifer

9 days ago

Well, I'm not sure what they had offered me last year. I'm one of those people who really don't look at all the junk mail that credit cards send you every month. I never opened any "change in terms" letters that Chase had sent to me. I have my bills set up on automatic payment and just glance at my statements. So last January, I received my statement it said that I had not made the minimum payment! I called Chase because I ALWAYS pay on time and more than minimum. That's when I learned that they were assessing a $10 monthly charge and bumping the minimum to 5%. I told them that was ridiculous and couldn't possibly be legal and that I was opting out. They told me I couldn't opt out even if I cancelled my account, I would still have to honor the new terms BUT they would allow me to continue making the 2% minimum and not charge the $10 if I agreed to the 7.99% rate. I did the math quick and the 7.99% was a no brainer in my situation. When I got the letter today, I got online to see if all the other people who were in my situation got the same letter, but it doesn't seem that way. THAT'S when I decided I better call them. The letter did not say that my minimum would stay at 2% and I thought that I was going to be told that it would go to 5%. But, the customer service rep (who seemed much more pleasant than I remember in the past) told me, "No, your minimum will be 2%."

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

David R Hanson

FiLife Contributor

David R Hanson said

9 days ago

Wow, that's exciting...congratulations! Would you elaborate please? Specifically, did they increase your rate to 7.99 because you called to complain about having your minimum payment increased to 5%? Or was the rate increase due to some other reason? If you'd rather not post publicly, would you please email me at filife ss sent.com? Again, thanks for contributing.

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

FiLifer

9 days ago

I recieved a letter from Chase today. One year after they increased my rate to 7.99% they are restoring my original rate and refunding me the difference! AND I called to see if my new payment will be bumped to 5% - NO! 2% of my outstanding balance! I don't know who was responsible, at this point I don't care. Someone was looking out for us and I appreciate whomever it was!

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

David R Hanson

FiLife Contributor

David R Hanson said

about a month ago

fili5rblay, good comment. I agree with you that there is no plausible "meeting of the minds" with respect to this "change in terms." All the moreso given that many who accepted the "fixed rate for life" offer had it explicitly described to them as a "fixed rate loan". Well, no "fixed rate loan" EVER accelerates its payments absent a default. And yet Chase admits that they did exactly this. I will update these comments with additional developments as they arise. Thanks to all who are chiming in.

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

Newcomer

fili5rblay said

4 months ago

Chase has been hit with 14 class actions suits over this issue. In my opinion, imposing a monthly fee on these accounts was blatantly illegal and certainly the weakest part of their scheme. The reason is that the offers stated a fixed "APR" . and under federal truth-in lending regs, when you add an additional finance charge to a loan it increases the APR.. Chase in its change in terms docs acknowledged that the monthly fee was a finance charge.but claimed the APRs were unaffected. I think they decided they could never win that one. The increase in payments is more onerous but slightly more likely to survive the legal challenge. As we all know they are relying on the language in the basic agreement, which says they can change the terms at anytime A clause I have come to regard as Chase 22. That being said, I believe that the offer and subsequent change in terms amounts to an unfair and deceptive business practice under FTC regs. I would contend that no reasonable person contemplating the offers would have anticipated the possibility that at some time in the future Chase would more than double the monthly payment for no other reason than that they had accepted the Chase offer. Which is, in so many words , their official reason stated on the notice.of change. I think and hope they will lose this one too. Unfortunately, the fact that somehow (politically) card issuers have been given the right to unilaterally change the terms of a loan after it has been made without the right of a borrower to opt out ("Chase 22") doesn't make legal sense to me. I have always been under the belief that for a contract to be valid, there had to be a " meeting of the minds" an understanding of the terms. How can those things be when one of those terms states that one party can unilaterally make unspecified changes to all of the other terms at anytime, for any reason and the other party is bound to those changes? Having done that, they then send out the mandatory changes stating that "You agree" to them, when in fact you haven't agreed at all. That's an agreement ? It would be nice if all those affected would simply refuse to make payments until Chase honored what we all believed (including Chase) the original terms of the offer or until the courts decide, but I know that' s not going to happen. Which shows how strong their grip is. But I urge everyone to do as little business with Chase as possible. And urge your friends to do the same.

Commented on: Cuomo's Crowing Effectively Endorses Chase's Draconian Change in Terms

David R Hanson

FiLife Contributor

David R Hanson said

5 months ago

An update: Chase has sent out a second wave of notices to an even larger set (over 850,000) card holders. This time there is no new press release or explanation supporting their action. And surprise: one difference this time is the new fee is missing. Only the minimum payment hike from 2% to 5% remains. I'd argue that the cover given by Cuomo and others helped make this seem like a sound tactic to Chase.

Commented on: Guru Q&A: How Does Debt Reduction Work?

Newcomer

josh4 said

7 months ago

Thanks for the complement David. We're constantly trying to keep our Credit Talk Forum a safe place for consumers to come and receive free advice and guidance from those who have been in the trenches. We hope to see you there from time to time too! Josh Creditnet.com

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David R Hanson

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