Chase Credit Cards to Penalize Borrowers who Pay on Time?

[Midnyte_Sun]

I heard a rumor at work that Chase credit cards will actually penalize those who pay off their loans on time or early because their not making any money off of interest. Is this true? Does anybody have any proof to confirm or deny this?

 

[Ahura Mazda]

That would seem to be illegal to me and I highly doubt it is true.

 

[BillyZaned]

Not with the new credit card rights things...

they can't even increase your interest on what you owe... if they tell you they want to, you you decline it... but you would have to close your credit cares... the only way they can increase your interest are late on making a payment

 

[C. Lee]

Not with the new credit card rights things...

they can't even increase your interest on what you owe... if they tell you they want to, you you decline it... but you would have to close your credit cares... the only way they can increase your interest are late on making a payment

They had a story on the news last night....a guy had never been late with his credit card payment in 10 years, but they doubled his interest rate with no explanation. They said that the new credit card rules haven't gone into effect yet, so some are increasing things now while they still can.

 

[BillyZaned]

• No more double cycle billing finance charges. Credit card issuers are prohibited from calculating finance charges using this method which causes cardholders to pay interest on previously paid balances.
• No interest rate increases during the first 12 months of opening a credit card, unless the rate increase was disclosed when you first opened the credit card.
• Promotional rates must last at least 6 months.
• No interest rate increases on pre-existing balances. If your credit card issuer decides to increase your interest rate, that new rate would only apply to new balances. Your current balance would continue to be subject to the old interest rate. There's an exception, however, if you become more than 60 days late on your credit card payments.
• Credit card issuers must give a 45-day advanced notice before increasing your interest rate or making any major change to your credit card agreement. This is a big increase over the current 15-day advanced notice requirement.
• Your interest rate could increase if you don't make the minimum payment within 30 days of your due date, even during the first 12 months of opening your account. You must receive a 45-day advanced notice of penalty rate increases.
• Increased rates must be reviewed and lowered if the review shows changes. Credit card issuers could no longer raise your rate to the default rate and leave it there even though you've improved your payment habits.

Payment Allocation and Fees

• Payments above the minimum must be applied to highest-interest rate balances. If you have balances with different interest rates, the new rules require banks to allocate anything over the minimum payment to your highest interest rate balance. This reduces the amount of finance charges you pay on balances.
• No fees to make your credit card payment online, by mail, or over the phone, unless you make a last-minute payment over the phone and your bill is due the same day or next day.
• Payments are due on the same date each month.

Limits to Over-the-Limit Fees

• No over-the-limit fees unless you request (opt-in) the credit card issuer to process over-the-limit transactions. Otherwise, over-the-limit transactions would be denied and you would not incur a fee.
• Only one over-the-limit fee is allowed per billing cycle. You cannot receive more than one charge for exceeding your credit limit in any billing cycle.
• Only one over-the-limit fee per over-the-limit transaction. If you make a purchase that puts you over your credit limit, you should only be charged one fee for that instance. Even if your balance remains over the limit the next billing cycle, you would not be charged a credit limit fee, unless you make an additional transaction that puts your balance over the limit.
• No over-the-limit fees caused by a hold on your credit limit. If a transaction, like a car rental, puts a hold on your credit limit, thereby reducing your available credit, a subsequent charge cannot put you over the limit.

Billing Statements and Payment Processing

• Billing statements must be sent 21 days before the due date, giving you more time to pay your credit card bill and reducing the risk of a late fee and interest rate penalty.
• Mailed credit card payments received by 5 pm on the due date are on time. This keeps credit card companies from stipulating a 11:00 am due time that would make your payment late if the mail doesn't get there until 3:00 pm.
• Payments are on time when received the next business day after a holiday or weekend (when the credit card company doesn't accept payment on those days). If your due date falls on a weekend and your card issuer receives your payment on the following Monday, your payment would still be considered on time. The same thing applies to due dates that fall on holidays.
• Payments made at a local branch should be credited the same day.
• Removal of new accounts from your credit report if you never activate or use the account, or you close it within 45 days

 

[BillyZaned]

They had a story on the news last night....a guy had never been late with his credit card payment in 10 years, but they doubled his interest rate with no explanation. They said that the new credit card rules haven't gone into effect yet, so some are increasing things now while they still can.

when do they go into effect?

 

[C. Lee]

when do they go into effect?

I don't know. They said, but I wasn't paying real close attention. I don't have any credit cards anymore.

 

[Immortalfire]

Discover is doing it. They too, added interest onto my last bill...even though I have never once been late with it.
As I understand it, the wonderful United States government is enforcing this, the idea being that it's somehow going to help those who DO have late payments.

But they're punishing those of us who aren't late. WTF

I ain't using my card, as a result.

 

[BillyZaned]

What it is... is this law is taking 9 months to go into effect...

so, basically it's like saying "right now, stealing isn't illegal, but it will be in Feb"... so, the CC are taking this time to hike rates while they can.. and when Feb hits, it's too bad for us because it's already been done

 

[C. Lee]

Pretty much. Credit card companies are just better organized loan sharks.

 

[Midnyte_Sun]

Discover is doing it. They too, added interest onto my last bill...even though I have never once been late with it.
As I understand it, the wonderful United States government is enforcing this, the idea being that it's somehow going to help those who DO have late payments.

But they're punishing those of us who aren't late. WTF

I ain't using my card, as a result.

If you cancel your credit card, you lose credit too BTW. This is just .... F&**(( BS!

 

[BillyZaned]

he never said cancel, just not use

 

[Midnyte_Sun]

he never said cancel, just not use

Yeah I know. I cancelled my Chase card after I paid off (early) an old Circuit City bill that went to Chase after they went bankrupt. My Credit score went down because of it.

 

[Immortalfire]

If you cancel your credit card, you lose credit too BTW. This is just .... F&**(( BS!

I'm not canceling it, just not using it.

 

[Addendum]

I've never owned a credit card, and I have yet to hear a convincing reason why I should. Crap like this doesn't make them appealing.

 

[Midnyte_Sun]

I have only one credit card and I'm going to cancel that one too. I'd like to have just one, for emergencies or when I travel abroad.

 

[Darthphere]

Chase has been a constant pain in my ass since they took over for Washington Mutual.

 

[Mace Dolex]

Whenever the credit card people call me up for special offers I just hang up on them.