Complaint / review text:
We received a change in terms notice from Chase on 6/25/09 regarding a credit card that we have through them. It stated that they are going to raise our minimum payment from 2% to 5% of the balance monthly. This will increase our payment from around $230.00/month to about $575.00/month. My main issue with this increase is that I believe that Chase is attempting to cause us to default on our payment so that they could impose a higher interest rate on us. The card was used for a balance transfer with a 3.99% life of the loan interest rate. We currently have two other Chase credit card accounts (one was with WaMu, which Chase then acquired) that have regular purchase interest rates. Although Chase raised the interest rate on one card (which I use for purchases and pay in full each month) and attempted to raise the interest on the other (which we used the opt-out option on and closed the account), they have not raised the minimum due. After doing some research on the internet, I discovered that the same thing has happened to many others that had the same low interest balance transfers.
I feel that because they cannot raise our interest, they are trying to create a hardship so people will default and then they can raise interest rates, charge late fees and so on. Some people have reported being offered the opportunity to keep their payment the same if they go to a higher interest rate. I feel that it is an extremely deceptive bait and switch ploy that they are engaging in. We have honored our end of the deal by always making our payments and never being late. Like many others this has happened to, we have an excellent payment history, never have defaulted on anything, and never even have been late. I feel that there should be something to protect us from this sort of deception. At the very least, it is a disgusting tactic that will cause a severe hardship for many families, including us. I hope someone will look into this to see if it is even something that is legal for them to do.