Complaint / review text:
I am the holder of 3 Chase Bank credit card accounts. I took advantage of an offer from Chase to consolidate my debt at a low interest rate for the life of the balance. I have always paid on time and always paid the minimum payment or more even when given the option to skip a payment by Chase. On 6/25/09, I received notice from Chase that effective 8/1/09 my minimum payment on these balances would be raised from 2% of the balance to 5% of the balance. This is a 150% increase in the minimum payment!
Currently, my payments to Chase are around $450 per month. I am able to manage this amount. However, I will not be able to manage the new minimum payment of nearly $1200 a month. Historically, Chase and other creditors have offered opt-out options when terms are changed. This increase is being forced with no opt-out. Chase will leave the payment at 2% only if I agree to an interest rate increase. Currently, my interest rates are 4.99% to 5.16%. Chase wants to raise this to at least 19.24% and possibly higher. I have played by the rules and have upheld my end of the agreement fully.
Now, Chase wants to change the rules knowing that card holders like myself cannot absorb a 150% increase and will be forced to take their deal of higher interests rates or simply miss making payments, thereby violating the terms of the agreement and allowing Chase to impose the higher interest rates at will. This is nothing short of extortion. I do not know how I will be able to make the new payment amounts. This will likely lead to higher interest rates, increase my overall debt, and possibly force me into bankruptcy.