Comments on: Can my credit card company, namely Chase do this to me?

By: brady ewart

brady ewart — Sun, 15 Nov 2009 11:54:41 +0000

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By: stan c

stan c — Sat, 14 Nov 2009 02:48:02 +0000

I think Most people do not read their contract before signing it, including me. I would get a loan to pay it off, then you can shop around for the best rate. I realize it’s a pain but you’ll feel 100% better after it’s done.

By: Sharing Mind

Sharing Mind — Wed, 11 Nov 2009 22:16:18 +0000

I think they can do that because it is in the term. they won’t break the term otherwise they will be really in trouble. do you see often credit card in trouble. so who is always in trouble? customer!. why? because they never read the term and understand how finance companies make money. do you know why there is credit score? because that is how they identify risky and non-risky customer. the riskiness determine who to give and if given what is the rate? when given they also set some level in the card limit to assess riskiness. the closer the balance to the limit the riskier the customer is. anyway i don’t think there is a law to prevent customer from transferring their card balance to other credit card. so why don’t you do that? find a card that offer 0% INTRO APR for balance transfer. you could save money if you can get long INTRO period. but make sure check all the term. act fast but wise with caution. you should have learned your lesson.

By: Craig T

Craig T — Mon, 09 Nov 2009 10:18:14 +0000

I think Can they legally do that? Almost certainly, something that was disclosed in the term & conditions when you got the card and is sent to you anytime there is a change in them.

I have yet to see the credit card agreement that didn’t spell out in legalese something that plain english basically means we CAN raise your interest rate anytime we want and for any reason we want. They can also lower your credit line, freeze your account and so on if they want to.

I am somewhat curious as to what your credit card utilization % is on your other cards and the last time you checked your credit score.

You may be a fine credit risk and I am not saying that Chase is right but while you may be the exception, people who are over 80% usage have not just a high default rate but an astronomically higher default rate. And lots of those got there the same way you did.

By: Cara

*Cara* — Fri, 06 Nov 2009 02:19:03 +0000

They did the EXACT same thing to my little sister. They increased her interest rate because they said she had too much outstanding debt. To answer your question, yes, they can legally do that. They have what is called the “universal default clause”. Meaning they can raise your interest rate any time they chose for any reason they chose. You can try to fight it but you’ll more than likely lose. Your best bet is to try to transfer to another card. My sister is unable to transfer her balances too and at this point is just stuck with that outrageous interest rate. Sorry, but credit cards suck, and Chase especially. Stay away from Chase people.

By: Studly

Studly — Thu, 05 Nov 2009 09:27:49 +0000

I think Can they do it? Yes.

Is it fair? No. And congress was trying to pass some laws that would prevent credit card companies from raising rates like this. But since they seem to have their priorities set in a different direction, don’t expect anything to happen any time soon.

You can’t transfer your card to another card, but can you maybe get a new card and get a balance transfer? There are tons of companies offering credit cards, and your 700 credit score should qualify you.

Inform Chase that unless they lower it back down, you will take your business elsewhere.

By: Ozzie

Ozzie — Sun, 01 Nov 2009 22:45:01 +0000

I think Without more details it is hard to say. Did they send a notice of the higher interest rate? I think you can close the account and keep the old rate but you still have to pay as before and you can’t use the card anymore.

By: shadowsthathunt

shadowsthathunt — Sun, 01 Nov 2009 18:59:15 +0000

You need to read the disclosures that came with the card when you applied for it. If you dont have them, then you need to get a copy from Chase. Most creditors have something in there saying that the interest rate can change at any time. So, it is possible that you are stuck with this crappy interest rate. I understand personal problems, but your best bet may be to drive the amount on your card down the best you can, and ask them what percentage of your available credit you need to reduce it to in order to restore you 14%. By the way, if you have good credit 14% is high to begin with unless you have a promotional program plan (like air fair reductions or something like that) you should consider another card. Alot of people get cards and have them for many years not realizing that there are better cards out there. Good luck, Im sorry you are having some financial difficulties at the moment… but you will get through it.

By: Nandina

Nandina — Sun, 01 Nov 2009 10:45:31 +0000

I think Get hold of the disclosure that they are legally required to send to you. Most credit card companies state that if you are late on a payment then they can jack up your rate, however I don’t know that they can justify that sort of rate increase based on limit/balance ratio alone. That’s in the “Default interest rate” zone.

If you call them back, ask to speak to a manager or supervisor, instead of the front-line employee that answers the phones. They sometimes have more power to waive or remove fees.

If your credit score is still good, consider opening a new account and transferring the balance, then closing the Chase card.

By: Lunar Sarah

Lunar Sarah — Sat, 31 Oct 2009 18:43:56 +0000

You’d have to read the fine print of the original contract you signed and mailed to them when you signed up. If they stated it originally that it wasn’t a fixed rate, they can legally do it.

Sorry. :/