Chase Manhattan Bank Complaint - Chase raised minimum to over double!
About 3 years ago, I transferred a higher rate car loan to a 2.9% life of the loan offer from Chase. Recently, my $230 payment went to over $600. My only alternative was to have my 2.9 percent loan raised to 7.9 for two years- then it would go up to 19%! There was no negotiating- I was told I could either accept the terms, pay it off another way, or take 7.9% for the two years and go up to 19%. This has been the case with several other people I know. Chase is hoping to eliminate the loans they made a few years ago with "life of the loan"offers. This is disgusting! I am glad I had the money in savings to pay it off, but I feel badly for the other folks out there who cannot. My credit is fantastic and I have never missed a payment. It is clear that this is a tactic to raise folks to 7.9, or get rid of those who want them to honor their contract at the original rate. The CSR told me that this decision was made to help people clear up their debt faster! It was a way to help the consumer... I asked how raising the rate to 7.9 was helping the consumer and she switched me to a manager, who basically said too bad- close your acct. if you don't like it.
I have closed all my accounts and will never do business with chase or any credit card company who uses chase again.
I still cannot believe this is legal for older "fixed rate for the life of the loan' offer where the original offer said that the minimum payment would be 2% of the outstanding balance.