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#1
06-24-2009, 10:08 AM
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Credit Card Minimum Monthly Payment IncreaseIn January 2007 I took advantage of a Chase balance transfer offer that gave me ~$50,000 at 3.99% until the balance was paid-off. The minimum monthly payment has been 2% of the outstanding balance. Yesterday Chase notified me that my minimum montly payment would increase to 5%. I cannot afford this 150% increase. Is there any action I can take to prevent this. Last edited by m martin; 07-02-2009 at 05:48 PM. |
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#2
06-24-2009, 10:31 AM
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| I am surprised that they waited this long to bump up the minimum payment. It has been years in the making. Here's a story on the issue from 2006. [url]http://www.cbsnews.com/stories/2006/01/06/earlyshow/contributors/ray******/main1184663.shtml[/url] You can call your credit card company and talk about your options. If you do not agree to the new terms and conditions you may have a limited amount of time to formally disagree with the changes. Depending on your bank, this may allow you to convert your credit card into a loan, preventing any new charges or interest rate changes. You would have to talk to your credit card company about the monthly payment required for the loan. Since you cannot afford payments on your credit card at the ludicrously low 3.99% interest rate, you may want to consult with a bankruptcy attorney. |
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#3
06-24-2009, 08:16 PM
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| Chase, just like many other big national banks, is hurting for cash. They didn't want to follow the rules for bailout money and are sending it back. So now they are shaking down their own customers to get the cash they need to survive. In some cases you can negotiate with the bank. Don't expect to have any more credit left as a result. In other words, they will want to close the credit account and leave you with a continuing payment plan. Do call them and ask to speak with the negotiations department. If the rep refuses to transfer you to that department, say "are you refusing to negotiate?" and see if that helps. If they persist, say "I take that as a refusal to negotiate in good faith". Call back and try for another rep ... a few times if necessary. Do be willing to settle for a fixed amount rather than a percentage of the balance. If you can afford 2% of what your balance is now, surely you can afford what that amount is each month until the balance is paid. That sounds like a good compromise to me, and pays off the amount sooner. But if you'd rather keep it at a percentage, insist on it. Be sure to NOT accept any attempt to lower the percentage rate. If they say that they need to raise it for lower payments, respond by saying "the payments and interest rate are already correct and what I can afford and I entered into this in good faith. If you want to raise them, you are creating a situation in which we will both lose." Are you willing to go into bankruptcy if they refuse to lower the minimum? Sometimes it takes that threat to get the bank to take something instead of nothing. |
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#4
06-24-2009, 08:22 PM
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#5
06-25-2009, 02:13 AM
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Yep, just tried it again and it even replaced it in the preview. Copy this URL into your address bar and then remove the underscore [url=http://www.cbsnews.com/stories/2006/01/06/earlyshow/contributors/raymart_in/main1184663.shtml]Credit Card Payments: Why So Much? - CBS News[/url] |
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#6
06-25-2009, 06:02 AM
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I tried typing in the name, but it substituted it even in plain text. And it substituted it even in the copied back text in the Preview Post. Of course in a long URL you wouldn't have noticed the changes. |
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#7
06-25-2009, 06:39 AM
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| Yes the site always does this with that name and I have absolutely no earthly idea why.
__________________ Lawsuits are not about justice. They are about MONEY. If you don't want money, then you shouldn't be thinking about suing. And people post here because they are thinking about suing. Because they want money, no matter how much they don't want to admit that to themselves. -Auto insurance adjuster for 2 years - as of 6/15/09, I am FREE! |
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#8
06-25-2009, 12:13 PM
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#9
06-25-2009, 12:16 PM
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 (and I'm not talking about Lord Voldemort.)
__________________ Dang the Persephone for eating those pomegranate seeds. It is because of her urge to snack that we must suffer through the winter that will soon be upon us.  |
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