Chase And Their New Account Service Charges

[persevering]

http://ficoforums.myfico.com/fico/board/me...hread.id=127972

 

http://www.ripoffreport.com/reports/0/388/RipOff0388782.htm

[Credit Matters]

http://ficoforums.myfico.com/fico/board/me...hread.id=127972

 

http://www.ripoffreport.com/reports/0/388/RipOff0388782.htm

 

There can be little doubt that Chase is chasing some of its subprime customers off -- or customers that it thinks represent great risk. I know the guy over there at ficoforums said he had mid 700 scores, but something seems odd.

 

You would not want to implement an annual fee of $120 a year on a customer that is not risky. And that minimum payment of 5% will push someone over the edge.

[NorCalR1]

This is targetted to subprime customers. If this starts hitting prime customers, this will be Chase's undoing. They have weathered this crisis better then their competitors, so that makes me think this is a guise to rid itself of customers it no longer wants.

[Credit Matters]

This is targetted to subprime customers. If this starts hitting prime customers, this will be Chase's undoing. They have weathered this crisis better then their competitors, so that makes me think this is a guise to rid itself of customers it no longer wants.

 

Precisely. Running them off. There's that term again. Chase was talking about run off with the Wamu portfolio. I wonder if they'll try to run them off like this -- or if Chase will just outright be closing Wamu cards when it finally starts dealing with those accounts.

[Hey Jude]

I have a little under $30,000 in CL with Chase, including WAMU, always PIF and currently about $200 on my Professional card, so bring it on Chase

 

I do have a BK, and about three baddies still on EQ so who knows if Chase will consider consider me a subprime consumer, and try to weed me out.

 

If they try this stunt with me, I shall close all cards immediately without a backward glance.

 

Jude

[Revike]

I have four Chase accounts - three started out as other banks which Chase bought. Over the past few years I transferred my balances from other cards to my Chase accounts using Chase offers that carried a 3.99% or lower interest rate until the balance is paid off. My utilization is under 20%, I always pay more than the minimum payment due, my FICO is 755 and I have a spotless payment record with Chase and all other creditors.

 

I have options, so I can transfer everything away from Chase, but it is annoying to have them create this nuisance for me, especially since I am not a subprime customer. I feel very badly for those with fewer options - increasing the payment minimum rate from 2% to 5% will devastate many Chase customers who have balances, and who have been trying to make ends meet with higher prices, loss of equity, etc. Bumping the minimum rate by 0.5% or 1% might be understandable, but bumping it from 2% to 5% is just vicious ...

Edited November 17, 2008 by Revike

[Credit Matters]

Bumping the minimum rate by 0.5% or 1% might be understandable, but bumping it from 2% to 5% is just vicious ...

 

Yeah. That is huge. People who have substantial balances -- and no options -- could get obliterated by that new minimum.

[hegemony]

my chase card has not been affected and I have subprime credit.

[BobWang]

my chase card has not been affected and I have had subprime credit.

You're too modest, Hege.

[Big Bear]

I received the new TOS last week, but I haven't seen any changes in any of my rates. My Chase cards have been sitting idle for a couple months now so it might be time to take them for a spin.

[hegemony]

my chase card has not been affected and I have had subprime credit.

You're too modest, Hege.

 

a BK makes my credit rather subprime IMHO.

[Revike]

I received the new TOS last week, but I haven't seen any changes in any of my rates. My Chase cards have been sitting idle for a couple months now so it might be time to take them for a spin.

The new monthly fee and new minimum payment rate do not go into effect until after January 1. Also, Chase has not started to post the new terms online yet. I received the mailed statement and insert on 11/13 for my account that closes on the 8th of each month. However, no online version of the "insert" has posted yet. My most recent online messages are dated 11/1, 11/1, and 11/7, and all concern minor changes that were effective 11/16 ...

[Big Bear]

I received the new TOS last week, but I haven't seen any changes in any of my rates. My Chase cards have been sitting idle for a couple months now so it might be time to take them for a spin.

The new monthly fee and new minimum payment rate do not go into effect until after January 1. Also, Chase has not started to post the new terms online yet. I received the mailed statement and insert on 11/13 for my account that closes on the 8th of each month. However, no online version of the "insert" has posted yet. My most recent online messages are dated 11/1, 11/1, and 11/7, and all concern minor changes that were effective 11/16 ...

 

Can you tell that I only skimmed the email/notice?

[athensgaguy]

my chase card has not been affected and I have had subprime credit.

You're too modest, Hege.

 

Honestly, I'm going to have to throw my hat into the "near-prime" ring. I think the new cut off for prime is 760. However, Chase has actually been quite decent with me. I don't have any super high CLs (my HHI was pretty low until this year), but they're leading the way with the highest one.

 

ETA: In case of sig. changes, I'm currently at 745 on EQ and probably similar on the others.

Edited November 17, 2008 by athensgaguy

[Shawnee]

That poster on FICO is probably one you can subtract a hundred points from his claimed score and be in the ballpark. These monthly charges and minimum payments are targeted at those they deem to be high risk, such as those with very high utilization, low scores, etc.

[Revike]

These monthly charges and minimum payments are targeted at those they deem to be high risk, such as those with very high utilization, low scores, etc.

I disagree. As I mentioned above, my utilization is less than 20%, and my latest FICO was 755. I've pulled my score four times in the past 1.5 years - all scores have been in the 747-758 range. I have a very boring credit report - completely clean, no lates, no inquiries in 2 years, etc. Not "high risk" by any usual definition ...

[Shawnee]

These monthly charges and minimum payments are targeted at those they deem to be high risk, such as those with very high utilization, low scores, etc.

I disagree. As I mentioned above, my utilization is less than 20%, and my latest FICO was 755. I've pulled my score four times in the past 1.5 years - all scores have been in the 747-758 range. I have a very boring credit report - completely clean, no lates, no inquiries in 2 years, etc. Not "high risk" by any usual definition ...

 

For some reason they've put you in their high risk pool, and that could be by virtue of their internal scoring only. They haven't hit me with any of this and my score is a few points lower than yours.

[Revike]

For some reason they've put you in their high risk pool, and that could be by virtue of their internal scoring only.

Very good point.

 

These changes are also very new - it will probably take another 3-4 weeks for everyone to get their statements for accounts with November/early December closing dates. And as I said, Chase's online notification of these changes has been delayed, for no good reason. If a statement mailed about 11/11 contains the printed insert, there's no reason those changes should not have posted online by now.

 

Also, I assume that only a small percentage of customers actually read their inserts regarding changes in terms. I expect there will be an avalanche of complaints in January when customers get their statements and notice the new fee and higher minimum payment for the first time, should this prove to be a widespread policy ...

[Battle_of_Evermore]

I guess it is a good time to pay off balances on any Chase card.

[Shawnee]

For some reason they've put you in their high risk pool, and that could be by virtue of their internal scoring only.

Very good point.

 

These changes are also very new - it will probably take another 3-4 weeks for everyone to get their statements for accounts with November/early December closing dates. And as I said, Chase's online notification of these changes has been delayed, for no good reason. If a statement mailed about 11/11 contains the printed insert, there's no reason those changes should not have posted online by now.

 

Also, I assume that only a small percentage of customers actually read their inserts regarding changes in terms. I expect there will be an avalanche of complaints in January when customers get their statements and notice the new fee and higher minimum payment for the first time, should this prove to be a widespread policy ...

 

They're not doing this to everyone. They're placing some customers in a high risk pool, obviously that can be independent of your credit score. CCCs have internal scoring that scores things that never show up on your FICO score, a good example is when you pay your bill even if you PIF. Those who pay closer to the due date lose internal points.

 

This is just another risk reducing scheme and for whatever reason they've included you.

[Cosmos Human]

Is this happening to WAMU accounts as well?

[Shawnee]

Is this happening to WAMU accounts as well?

 

As far as I can tell WAMU cards are still being serviced independently. If the Circuit City portfolio is any indication it may be quite a while before WAMU accounts are merged with Chase.

[Revike]

More information has been posted in the corresponding FicoForums thread. According to one poster who talked to customer service, there is an "option" (other than closing the account and paying in full immediately) to change the applicable rate to 7.99%. Presumably, doing this would allow the customer to escape the $10 monthly fee and 5% minimum payment.

 

The customer service rep told the customer that this change is being applied to all accounts with balances that include low "life of loan" rates.

 

That means this change is more of a cash-generating terms change, instead of a risk-lowering change. And it makes more sense - accounts with these specific terms are being targeted, regardless of the accountholder's status (prime or subprime) ...

Edited November 17, 2008 by Revike

[snark]

The only thing about this that I find interesting is that there are still people who use the words "Chase" and "service" in the same sentence.

[Credit Matters]

More information has been posted in the corresponding FicoForums thread. According to one poster who talked to customer service, there is an "option" (other than closing the account and paying in full immediately) to change the applicable rate to 7.99%. Presumably, doing this would allow the customer to escape the $10 monthly fee and 5% minimum payment.

 

The customer service rep told the customer that this change is being applied to all accounts with balances that include low "life of loan" rates.

 

That means this change is more of a cash-generating terms change, instead of a risk-lowering change. And it makes more sense - accounts with these specific terms are being targeted, regardless of the accountholder's status (prime or subprime) ...

 

I haven't read the fico thread, but let me get this straight.

 

This is only being targeted at those who have low "life of loan" rates. Thus, someone with a 2.9% rate for the life of the loan would be subjected to this new fee and minimum. If, however, you decide to take your 2.9% rate to 7.99%, the new fees and minimums will not apply.

 

If the new rate (of 7.99%) is rejected, will a consumer EVER be able to get the $10 monthly fee waived or eliminated once the balance is paid off? One would have to assume that most go-to rates are above 7.99% anyhow.

 

By rejecting the rate increase, one would be subjected to a $10 fee each month and eventually a higher rate than the new "life of loan" rate of 7.99%.

Edited November 17, 2008 by Credit Matters