Chase Bank Consumer Reviews - Page 7

MICHIGAN -- Dear Mrs. Osborn:

In light of your past correspondence, I thought you might be interested in knowing about a hearing I chaired yesterday entitled “Credit Card Practices: Unfair Interest Rate Increases.” As you may know, this is the second hearing that has been held as part of the ongoing investigation into unfair credit card practices I initiated as the Chairman of the Permanent Subcommittee on Investigations.

Yesterday's hearing focused on credit card issuers who hike the interest rates of cardholders who play by the rules. These are cardholders who pay on time, pay at least the minimum amount due, and then wake up one day to find their interest rate has gone through the roof because their credit card issuer decided they should be “repriced.” Some credit card companies are foisting interest rates as high as 25% or 30% on responsible consumers, claiming they have become greater credit risks even when those same consumers haven't missed paying a bill in years. To add insult to injury, credit card issuers apply those higher rates retroactively to consumers' existing credit card debts, which were incurred when lower interest rates were in effect.

One of the three consumers to testify at the hearing yesterday was Janet Hard, a registered nurse from Freeland, Michigan. She shared her story with the Subcommittee about the Discover card she has had for several years. Although Ms. Hard had paid her Discover bills on time for years, never exceeded her credit limit and always paid at least the minimum amount due, in 2006, Discover increased the interest rate on her card from 18% to 24% out of the blue. The higher interest rate has made it more difficult for Ms. Hard to pay off her debt. Over the last twelve months, Ms. Hard has kept her credit card purchases to less than $100 and has made steady monthly payments of $200 to reduce her debt. At the end of a year, her payments totaled $2,400, but due to the higher interest rate, almost all of her money went to pay for finance charges. In fact, out of her $2,400, about $1,900 went to finance charges and she was only able to pay down her principal debt by only about $350. Further details on this hearing may be found on my website at: [http://www.levin.senate.gov/newsroom/release.cfm?id=288160].

Credit card companies are currently the only lenders permitted to retroactively change the interest rate on a consumer loan where the consumer has met their borrowing obligations. This unfair credit card practice needs to stop. In May, I introduced the Stop Unfair Practices in Credit Cards Act (S.1395), which would stop credit card interest rate increases except in four circumstances: (1) after the lapse of an introductory interest rate; (2) pursuant to a variable interest rate; (3) pursuant to the application of a previously disclosed penalty interest rate after a cardholder violates the credit card agreement; and (4) where the cardholder agrees in writing to the increase at the time it is proposed. The bill would also prohibit the application of higher interest rates to existing credit card debt. Instead, a higher interest rate could be applied only to credit card debt incurred after the increase took effect. If you would like to learn more about the other provisions included in this legislation, you may access my floor statement and press release at the following link: [http://levin.senate.gov/newsroom/release.cfm?id=274257].

Additionally, if you or someone you know would like to share a personal credit card experience with me for my investigation, please send an e-mail to [creditcards@hsgac.senate.gov]. If you would like help with a credit card problem, you may want to contact Consumer Action. Consumer Action is a national, non-profit education and advocacy organization that provides free, non-legal advice and referrals on a number of consumer issues, including credit cards. A complaint may be submitted to the Consumer Action hotline by telephone at: 415-777-9635 or through their online web complaint form at: [http://www.consumer-action.org/hotline/complaint_form/].
Sincerely,
Carl Levin

UTAH -- I open an account will Chase back in 2005, made all my payments every two weeks, never late, always on time and current. Well I got laid off my job back in 2006. My credit card was a limit of $200. I only spent $170 on my card; keep in mind, my balance is under the limit. Trying to explain to Chase that I was laid off and couldn't do anything about it as I have no income, do you think they cared? NO!

Next thing you know after 3 months of not able to make any payments to my account, it goes from $170 to $639. After getting charged $7 a DAY and $35 a week and a $39 a month, plus interest, my balance sky rockets to an outrageous balance. After trying to talk to the lame customer service several times about my balance, they would do nothing for me.

So I gave in and started to pay $40 every two weeks so they are getting some type of payment as I couldn'€™t pay the $930 minimum payment at once. Well even paying the $40 bi-weekly, it wasn't even cutting half the late charges I was getting, so why keep paying the $40 when I just paying for it over and over and over again and my balance just keep raising? Finally I just decide not to pay it.

Well after 1 year fighting with Chase about this matter, I was contacted by an attorney back in Nov. 2006. She threaten to take me to court on the behalf of Chase. I told her "GOOD! Take me to court, send me my paperwork, and I will turn around and file a lawsuit against them." She was pissed off and hung up on me (remind you, a attorney of law hung up on me). Still 'til this day 6/2007 I have not received any those of the papers.

I called up Chase asking them to send me my statements, they told me NO. I went off and told them I have the right to my statements and all payments to my account. I was told that I had to send a letter to them stating that I need my own statements. So I did, I mailed that in Nov 2006.

Today I got a call from Chase (6/5/07) telling me that they just got my letter and need to know why I requested my statements (freakin' morons). I told them legal issues. The guy told me that I should be getting in the mail soon. He asked me if I plan on paying off my account. I told him no and that this is going to court. Before I could finish my sentence, he cut me off and was like "do you plan on paying this account?" Once again I told him no (I'm guessing that he needed to record it as I told him no), but they have to warn me beforehand if they are going to record a conversation. Then he was like "Thanks" and hung up.

All I have to say about Chase, for sure will never use them again. I was stupid for even getting a card from them and warned all my friends and family to never use them. I can'€™t wait to take this to court so I can shove it to them hard and fast like they did to me!!! (Remind you again my balance started at $170.00 and now it is $1356.00.)

CALIFORNIA -- I am celebrating tonight. I have had credit cards for 30 years and never, NEVER a problem. Until Chase. To be honest, the problem started when they were Bank One. I was sent a convenience check with a low lifetime rate and since at the time was very cash poor (I have my own business and business dropped off for about six months) I wrote a check for my remaining balance on this card $3,000.00.

Bank One returned the check (I had too much credit out they said) and lowered my credit on that card AND the other one I had with them to what I had as a debt. The checks I wrote to my other payables against that convenience check bounced of course. HUGE hassle. Then AFTER the merger it was Chase now that raised my interest rates to 29% on both of the former Bank One cards I had with them. I had never been late in the 15 and 10 years respectively I had had these two cards.

I borrowed money from a family member and paid off the one. Chase immediately closed that account. With my tax return I paid off the second account and they immediately lowered THAT credit account with that account from $10,000 to $500. I closed that account myself.

I had two accounts with Chase left. These two accounts were always with Chase and Chase has never raised these two, I had the same 5.99% on the balance of those two cards. I assume there is some legal reason they cannot raise it or they most certainly would have. (I had done a balance transfer for 5.99 for the life of the loan unless I was late and as I said before, I was NEVER late.)

My refinance on my house came through a month ago and today I paid off the balances of my remaining two Chase accounts. Even though they were low interest, it was worth it because I AM FREE OF THEM!!! I will NEVER do business with Chase again. Sad because previously they had been my favorite bank. All of my phone calls last year when they raised my interest to 29% were exercises in futility. Frustrating, head banging episodes. I do have other accounts with Citibank and Discover and Wells Fargo. All of these credit cards honored my long-time customer, regular paying, never late status.

None of them raised my rates or lowered my credit (which of course correspondingly did not HURT my credit). I think that is what angered me with Chase the most. What was the point in paying down credit with them when they lowered my credit every time I made a payment? And although during that period of time, my credit rating was as low as it had ever been, it still wasn't THAT BAD! (640).

Anyway, my hope is for any of you who had the bad luck to trust this bank, will soon be at the place I am today -- FREE!!! And forever free because I will never... and I mean NEVER [People in my family can hold on to a grudge) use their cards. I will never take out a loan with their bank, I will never have a checking account, I will never take them up on the line of credit they keep trying to offer me (and did at the same time they were charging me 29% on my cards!).

MUNCIE, INDIANA -- Chase Bank is the worst bank I have ever been to in my life. I have never had problems like I did with them. I went to open an account on my 18th birthday in May and applied for a credit card for overdraft protection. I didn't plan on using the card but my cat sick and the vet bills needed to be paid. When I applied for the card I was told the introductory interest rate was 0% for the first 12 billing cycles on all purchases. I even have this in writing.

Well, when my first bill came the interest rate was at 24%. I called to find out what the deal was and the customer service rep. told me that they would NEVER offer an introductory rate of 0% and that they always go by your credit score.

As if 24% isn't bad enough, I received a letter earlier this month stating that my interest rate would go up to 32.24%. Luckily, I had the option of writing a letter and opting out. But I'm sure when the time comes they'll say they never received my letter.

There was one time that I tried to pay my credit card bill over the phone the day before it was due but I was told it wouldn't go through anyway because their computer system was down. I was slapped with a $32 late fee the next day because of that. I went ahead and paid the $32 fee plus my minimum payment anyway. Well, the next month's bill came and they wanted me to pay the $32 late fee again! I disputed this with 3 different sales reps and 2 supervisors before someone finally understood that I had already paid it and took the charge off!

This company does not value your business at all! I even called and talked to a supervisor about transferring my account to another card if I could not get my interest rate down. His exact words were, "Well, they can call us and get it transferred over if that's what you want to do. I can't help you."

Besides the credit card situation, the actual banking is horrible as well! My mom went to close her account with Chase after multiple problems. Well, there was one check that had not cleared, so she left just enough money in her account to cover it and took the rest out. A couple days later her account showed a $64 fee. I called to find out why and there were two checks that had come in and bounced because there was not enough money in her account. If two checks hadn't cleared then why did this guy let us take all the money out? They have no freaking clue what they're doing!

I quit using my account a couple months ago but couldn't close it because you have to have your account open at least 90 days before closing it. I still tried to cash my checks there and was told they would not cash anything for me unless I had a certain amount of money in my account... ridiculous! I will never deal with Chase again!!

FLINT, MICHIGAN -- I visited the banking center in the Diplomat Plaza in Flint, Michigan. I went there after I wasn't able to be helped over the phone. The issue I'm having is this: Somehow, someone got my debit card number and ordered some items on the internet without my consent or knowledge. I didn't realize there was a problem until I started getting overdraft notices. I immediately called to find out about those charges. I disputed the charges. However, there were three different unauthorized charges on my account. I thought they had taken care of them, but I keep having problems.

I was charged a service fee and an additional overdraft fee due to these items. These unauthorized charges have simply screwed up my checking account. Chase did a chargeback on the wrong company and caused me to have fees incurred. I am a displaced auto worker and am living on a fixed income at this time. The last thing I need is several fees that I can't afford. I explained this to the branch manager when I went into the bank. She was obviously having a bad day, because she was extremely unsympathetic to my situation (For the record, this is the second time I've had to deal with the manager, Jenni Hill. The first time I dealt with her, she wasn't helpful or considerate either).

I explained to her how these charges have created many issues with my account. I also explained that I am on a fixed income, have been a Chase customer since the bank was called Genessee Bank, wasn't trying to get over, and only wanted a couple of the fees waived because the mixup with the unauthorized charges threw my entire account off a little bit. She then told me there was nothing they could do about it because they refunded the unauthorized charges and service fees related to those items only. She wouldn't take into consideration the fact that my entire account was thrown off due to something out of my control.

I then said, "Well, I can't afford to keep paying these fees, especially since I'm on a fixed income. Is there any way to get these fees waived one time so that I can get back on track?" She replied, "Unfortunately not." (Which was a lie. All branch managers have the authority to waive fees). I then told her that I would like to close both of my accounts. She didn't try to talk me out of it or offer an alternative. She just said, "Well, you still have some items pending. They should clear by tomorrow. Come back then and close your account."

I am appalled that they would simply let a long term customer go because they don't want to waive the fees occurred due to something out of my power. I have decided to write this letter to let Chase and any Chase customers know that when it comes down to it, they are more concerned with their fees than they are their long time customers. I have decided to do my banking with National City. I went to inquire about opening an account and their customer service is excellent! Thanks for nothing Chase.

Attention, any Bank One or Chase credit card customers who have had their APR raised to a very high level under the rationale that they have become a ‘high risk' customer: Has anyone been able to get a letter from Chase with ‘high risk' printed anywhere in the text? Or has anyone been able to obtain in writing the terms or policy under which Chase classifies consumers as ‘high risk'? (Please leave a comment below.)

I have written and called Chase numerous times, specifically asking for a copy of Chase's “Marketing Strategy” (Chase's Lending Operations Department words) that reclassifies consumers into ‘high risk' categories and then pressures them to close or consolidate their accounts. I have also asked that Chase put in writing to me whether or not I have in any way triggered the ‘default' terms of my ‘Card member Agreement.' All I have been able to obtain from Chase are computer generated letters that give me no information about changes in the terms of my account or about Chase's policies.

In October 2004, if I paid the ‘minimum payment' on my Bank One/Chase VISA, 98.28% of that payment went toward the principal balance on my account. My agreement with Bank One (in pre-Chase days) was for a locked in low APR “for the life of the loan.” This month, if I pay the ‘minimum payment' on my Chase VISA, 31% of that ‘minimum payment' will go toward principal... and 69% toward interest! I believe any legitimate company would be happy to give me a written explanation for that.

If Chase is comfortable with its “Marketing Strategy” and has a policy which it knows is legal, there should be no problem with Chase sharing the terms of such a policy with customers who are directly affected. By the way, my October 2004 payment to Chase was for $1000 (12 times the 'minimum payment' amount). Does ‘high risk' refer to my ability to pay my bills or to Chase's ‘high risk' that they will not see enough profits on my account?

A Tale of Two Credit Cards: Citibank & Chase. Here's a tale I hope you'll enjoy of inconsistency in consumer credit services. I had a Bank One VISA card with a fixed 3.99% APR ‘for the life of the loan.' I also had a Citibank MasterCard with a reasonable but not fixed APR. When Chase merged with Bank One, it immediately and illegally raised my VISA APR to 24.74% overnight with no notice or justification (currently being appealed through Attorney General, Office of the Comptroller of the Currency and COO of Chase).

A few days after I received the insane APR increase on my Chase VISA, a similar increase appeared on my Citibank M/C statement (also no written notice or justification). I called Citibank right away. They were interested in having me update them on my current financial situation (income, assets, growth in my flourishing small business of six years, my current contract with a university, business expenses I had charged to their card during the past year), and when the conversation was done, they pulled my complete (flawless) credit history from Equifax and reviewed it with me on the phone.

After about 40 minutes of their time and mine, they said they had made a mistake not only in raising my interest rate but in the interest rate they HAD been charging me for the past six months. They not only reversed the high APR newly assigned, they lowered the APR I had been paying them by 2.5%! I received written, signed confirmation today from Citibank on the lowering of my APR as well as a refund on my monthly statement of the interest Citi overcharged me.

Here's how Chase handled my call. I called the 800 number, waited for 10 minutes to be connected to someone who couldn't help me or give me any information. Then waited another 5 minutes for a Credit Lending Operations rep to get to my call. When I asked the Chase rep what information they needed from me concerning my “ability and willingness” to pay them, they said they didn't care about my income, assets or financial situation. They also said that even if I paid off all the debt I owed in the world (which isn't a lot, thank God), Chase would not lower their 25% APR on my account.

The 25% APR was a done deal... unilateral decision with no rationale, no recourse, no appeal. I've been a Chase customer in good standing since 1985(!) and have a flawless credit history/report, so perhaps I expected too much. So why do I continue to appeal to Chase? Perhaps I'm just a stubborn Yankee, but mostly I have a low tolerance for injustice and refuse to be screwed over by this organization. By the way, I just received my Chase monthly statement... which includes a promotional offer to transfer other credit card balances to my Chase account; at 24.74% APR? Who are they kidding?

Now who do you think will get my consumer credit business... Citibank or Chase? Note to all those who have been unfairly treated by Citibank and have had poor dealings with that company: I believe you! This is not an apology for Citi. It has some rotten “consumer specialists” in its apple barrel, too, and could turn back to bite me at any time. But the overall customer service climate at Citi, in my humble opinion, does not approach the icy, sociopathic disdain of the Chase so-called service staff.

I know what you're thinking: maybe I just got in touch with the Chase rep who was having a REALLY bad day. Well, I called 5(!) times and got an identical, robotic response each time, obviously read to me off a sheet of paper or computer screen.

Don't worry, Chase sufferers. Work on the lawsuit continues. Hopefully, there will be more concrete information here on Tuesday, May 31, 2005. Have a nice holiday weekend!

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 anything 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 Experian.

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 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 approximately 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!

PORTLAND, OREGON -- I received by February statement showing my interest rate increased to 29%. My previous rate was 10.99%. I called Chase and they told me abruptly that they sent me a letter informing me of the increase and the reasons. I never received such a letter so I asked what the reasons were. They said that the reasons were due to a recent delinquency and length of time accounts have been established. I asked for a copy of the letter to be sent. In the meantime, I dug through my papers and sure enough no such letter. The letter I did receive previously from Chase was all about how they had merged with Bank One and there was no date on the letter.

Furthermore, nothing on the front of the letter indicated that there were SPECIFIC reasons for raising my rate. Naturally when I received this letter, I just assumed, wrongly, that it was just about the merger and that I had a new card member agreement. Upon turning it over and reading down to the bottom of the letter and the little gray print, it stated their "decision" was based on information obtained from Experian and if I wanted the specific reasons, I should write them within 60 days. So, I was lied to on the phone by the first rep, as it's clear that I did not received a letter with specific reasons because I would have had to write for one.

So I was told to fax Credit Research group a copy of my credit report showing no delinquencies and that it would take 60 days for review. I called back, and was told that they don't know if they received it because the fax number I was given was for correspondence. So I was given yet another fax number and was told they would update the account with notes when it was received. We will SEE. In the meantime, I am researching Chase as it becomes more and more obvious as the days go by and the number of complaints I have read, that I am NOT the only person they are doing this to.

I think it's wrong, especially when they are doing it to their good customers who pay on time and DON'T have any delinquent accounts with any creditor. The irony is that if I wasn't using the accounts, they would be trying to get me too. Also, they called my interest hike a 20% a "slight increase". Not to mention that I have kept a very high balance on this card for 2 years due to the low interest rate I had received when I previously threatened to close the account.

If there is a class action suit pending, I would love to know about it. I won't let Chase treat me or anyone else this way. I refuse to do business with them if they continue to treat me this way, and I will tell everyone I know, and meet, to never do business with Chase Manhattan Bank.