Chase RJ letter

[hjm331]

I know that this is nothing new here but wanted to know if it would be a good idea to close the account. They're raising my purchase APR from 20.24% to 23.24%, as if 20.24% wasn't already bad enough. I'm currently carrying a balance of approx. $1,800 on a $2,000 credit line.

 

It's NOT my oldest credit card but wanted to know if they can raise the interest rate or min. payment when I've opted-out.

 

TIA

[IndyPoolPlayer]

No. If you opt out you remain in the previous terms and conditions. However if they declare you in default then all of it changes

[hjm331]

No. If you opt out you remain in the previous terms and conditions. However if they declare you in default then all of it changes

 

Can they do that as long as I'm making my payments on time?

[virtualtreasure]

No. If you opt out you remain in the previous terms and conditions. However if they declare you in default then all of it changes

 

Can they do that as long as I'm making my payments on time?

 

no... still try to bt out of that 20.24 apr if possible.

if you do default, technically they can 'call' the loan.

[hjm331]

I don't have a problem making payments. It's just that I don't want to waste my money with the higher interest rate. I can't apply for credit right now because for one my credit reports are frozen and second, my util. is at 38% and it will be difficult to get approved for a card with a BT intro offer.

[clutchcargo]

No. If you opt out you remain in the previous terms and conditions. However if they declare you in default then all of it changes

 

Partially true. Chase can and has "re-jacked" after an opt out, possibly worse then the first jack.

 

OP, if you opt out and don't BT this away, keep an eye on any mailings you get from Chase for a future RJ. If you get one, opt out again.

[breeze]

No. If you opt out you remain in the previous terms and conditions. However if they declare you in default then all of it changes

 

Partially true. Chase can and has "re-jacked" after an opt out, possibly worse then the first jack.

 

OP, if you opt out and don't BT this away, keep an eye on any mailings you get from Chase for a future RJ. If you get one, opt out again.

 

 

So true. The latest trick is to raise rates even though you closed the card by opting out of a previous rate hike. I guess people stop opening their mail when the account has been closed, thinking it couldn't be very important. There's no limit to what they can come up with to take more of your money.

[hjm331]

In other words, I'm going to have to keep opting out of any ratejacks even if my account is still closed?

[Riled]

Below is the exact wording from a change in terms I received from Chase early this year.

 

Under the "Right to Opt Out:" section of the official language.

 

"......... If you send such a letter, these changes will not apply. Your account will be closed (if it is not already closed) and you may not use it further.......... Please note that regardless of whether you opt out of the changes in terms permitted in this Notice, we may send you other change in terms notices in the future to amend your account terms including APR's."

[Riled]

FWIW, 3% increase on $1,800 is an extra $54 per year. So if you can't pay it off or transfer it soon, think of it as the same as if they added a $54 annual fee to a PIF card. Someone with limited history or rebuilding from bad history might consider paying a $54 annual fee to build positive history. Someone with lots of positive history probably would not pay a $54 annual fee on a PIF card. Same line of thinking probably applies to a 3% rate jack on a card carrying a $1,800 balance you aren't in a position to pay off or transfer in the near term. But paying even 20.24% is horrendous enough. The highest priority needs to be placed on paying it off sooner rather then later or transferring it. The APR HAS to be brought under control.

Edited November 20, 2009 by Riled