Chase Manhattan Bank Complaint - Without notice they raise your rate to 29.45%
I just received my statements from Bank One First USA Chase and they raised my rate to 29.45% last month. I have perfect credit and have never been late on any payments. I took advantage of their offer on a low promotional rate of 5.9% for 6 months last year to pay off some bills.
At the end of the promotional period they increased my rate to 12% which I felt was fair based on competing credit card issuers. I have been making all payments on time with no derogatory or late payments with Bank One or any reflecting on my credit report. I pay Bank One approximately $1,500 per month on these three accounts. They originally issued me three cards based on my perfect credit history with $30,000, $20,000, and $10,000 limits which I used based on their offer to pay off bills utilizing their competitive interest rates with the understanding if I made payments on time I would be charged a reasonable interest rate.
I contacted Bank One on the telephone and wrote them a letter about this issue and requested the terms and conditions which allows them to raise the rate to a ridiculously high A.P.R. which I understand to be a default rate. 29.45% is extremely high for someone that pays all of their bills on time.
It has been over 30 days and I haven't received anyting in the mail. Again I contacted Bank One by telephone and asked why such an extreme increase without notice. They said based on a review of my credit report I was carrying exceptionally high balances and instructed me to contact Equifax and Esperian.
I contacted the credit reporting agencies which sent me a copy of my report and I became aware the high balances they mentioned were the balances I carry with Bank One. They issued the credit and are now using the credit they approved which is reflected on my credit credit report as a reason to now charge me 29.45%.
This seems illegal and I feel they are taking advantage of consumers. I don't mind paying a fair rate for unsecured credit but 29.45% seems unfair especially since I have never been late on any payments.
In fact, this is ridiculous. If I had known they could charge this high of an interest rate I would have never utilized their lending services in the first place. It seems since Chase purchased Bank One and the merger is finalized they are instigating unfair practices. They should at least give notice they were going to raise the interest rate and to more than double the interest rate in a single rate hike should be against the law.
I asked them to lower the rate from 29.45% to something fair until I can work out other arrangements to pay them off in full which will take me approximatley 90 days. Again they refuse to do anything and now they have telemarketers calling my home throughout the day wanting me to sign up for accident and disability insurance.
Also, at the same time, I am receiving new offers from them as well for additional credit cards with low interest rate balance transfer offers.
I am furious!