Chase Manhattan Bank Complaint - How the Chase Card Services is Changing the Rules and Hurting Account Holders
Chase Card Services has recently "changed the rules of the game" and is going to hurt many card holders by raising minimum payments from 2% to 5% and adding a "finance charge" with no "opt out." The steps I have taken can be summarized as follows:
1) I have sent a certified letter to the CEO of Chase Card Services.
2) In the past few weeks, I have been developing a site, [snip - no solicitations please] (where I have posted the aforementioned letter; see "About").
3) I have sent letters, faxes, and emails to Senators, advocacy organizations, the FTC, OCC, and the FED, and members of the media.
4) I have responded to blogs and forums, like this one.
If you are interested, you can visit the site for more information, but I am not just concerned for myself. I am an entrepreneurship professor, and one of my research areas is small businesses -- particularly "bootstrappers." These businesses are the lifeblood of our economy; they comprise the majority of all businesses; and, credit cards are a primary source of capital for a large percentage of small entrepreneurial firms. I have written numerous papers and even provided testimony before Congress on the subject of credit cards and small businesses.
Folks, I am afraid that this topic under discussion is a "life and death struggle" should the credit card industry continue down the path being forged by Chase, relative to our collective interests and economic future.
Most of the fairly thin media coverage on this action by Chase repeats the basics of the changes, but not the repercussions. Nor do reports that I have seen address the outrageousness of these changes. Can you imagine what would happen of your automobile loan suddenly changed from $239/month to $589/month? No other industry has been allowed to be so incredibly arbitrary or unfettered in its ability to promise one thing, and then through "bait and switch" as well as other deceptive tactics, deliver something that is altogether different (and harmful to consumers and small businesses).
To reiterate a point made on my site, one cannot really "change the terms" when dealing with credit card companies from a legal perspective, but one can change the terms under which he or she relates to these companies from a marketing perspective. From that latter perspective, I have only begun to fight. I've taken about all I can stand from this industry, and as the site's slogan suggests: "Now I'm Coming After You [credit card companies]."