Loose Cannon Style

Under the guise and pretense of “risk-based” pricing, chase puts the screws to its credit card holders by applying all payments under their credit card holder agreements to lower interest balances first.

I too soon found out what this means, as I have a Chase credit card with a regular balance and a cash advance balance. My cash advance balance is about $400.00, and on my statement i noticed they were charging me 20.99% for this balance, compared to 8.99% for my regular what they call “purchase balance”.

So I called Credit Card Services which is 800 945 2006 You cannot dial 0, if you do not enter the last 4 digits or press any key like 0, they will then ask you for your entire 16 digit account number or the last 4 of your social security. I did not enter anything and Spoke with a “Sheila”.

Sheila informed me that you cannot send a payment directly to your cash advance balance, I told her that this was predatory lending and that I would like to speak to a manager.

I was transferred to a David Porter, he also informed me that on the card holder agreement it specifically states that you agree that chase will apply the payments in whatever order they wish and that they usually apply payments to the lowest interest balance first.

Meaning that I would have to pay off several thousands of dollars on the regular purchase balance before they would apply any payments i sent to pay off the cash advance balance of $400.00 which is being billed at 20.99 Percent Interest.

I think this is predatory lending and I think it is unfair for Chase to abuse their customers by denying them the opportunity to have their payments applied to whatever balances they should so desire.

Well like most other things I bitch and moan about, it doesnt seem like im alone, new legislation and this article in BusinessWeek show how debt-strapped consumers are lashing back against these big banks to do whatever they want and unfairly bill you without giving you an opportunity to pay back whatever debt you want first.

So lets say i make you two loans, one at 10% and one at 20%. Wouldnt it make sense for you to pay off the higher interest rate loan as fast as possible? Of course it does, but me being chase tell you NO WAY: you have to pay me the 10% interest rate loan first, then i will let you pay off the 20% interest rate loan. Doesn’t seem fair now does it?

Now it may not be up to the credit card companies anymore, according to the new rule changes proposed by the federal reserve board, these unfair practices may be coming to an end.

They received OVER 50,000 comments and suggestions from frustrated individuals sick and tired of being abused by these racketeering organizations. Thanks President Bush, I hope you rot in hell. You are no Christian, no god could absolve you of all the damage you have directly or indirectly caused to the majority of the people in America. It wasn’t enough to steal the election, you had to screw everyone over too. Of course, I should have seen it coming.

This entry was posted on Thursday, August 28th, 2008 at 12:17 pm and is filed under Corporate Corruption.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.