Chase Manhattan Bank Complaint - Increase of Minimum Payment - Unconscionable
CALIFORNIA -- I just recently received my bill from Chase indicating a minimum payment due of 5% of the balance. It has been at 2% since since the inception of the 'loan' in 2006. I have been paying on this loan which was offered to me at 3.99% interest for the 'life' of the loan. Upon calling I was told that Chase is attempting to rid itself of lower interest loans. I was told my only options were to pay off balance, transfer amount to another lender or agree to 7.99% to keep my minimum payment at 2% of balance. It is my opinion this is a breach of contract. One party to a contract cannot arbitrarily and unilaterally change the terms without agreement from the other party. This is an example of pure greed. When I mentioned their action violates the intent of regulators attempting to reign in credit card abuse, I was told this is in compliance because regulators did not want customers indebted for long periods. How then can they say it is okay to pay 5% on low interest loans but only 2% on high interest? It is contradictory. Haven't we suffered enough from corporate greed and mismanagement of their assets in which we, the taxpayer, have to bail them out only to be slapped with more abuses. I am sure many people on a budget will have difficulty in meeting the new payment minimum. In which case they will then cancel the %3.99 according to the terms of the agreement and make it 24% or higher.
Companies like this need to be made accountable.