As I have been sending correspondence with various advocacy organizations, regulators, and other representatives (some respond, some respond eventually, and others do not seem to respond, at all), I have made points in my writing about Chase’s business strategy. What’s going on in the minds of Chase executives, that would explain the company’s callus behavior toward account holders?
Well, I have postulated a few things, based on what I know about banks and executives, generally, and research regarding Chase (a case study in greed). First of all, banks rarely do anything unless its in their own interests, not yours or mine. They use the same tried and true advertising appeals that copywriters have employed for years: “In order to provide customers with the optimal user experience [we have just taken away these six services that they used to have, and raised rates] our newly improved lending products come complete with an array of benefits, that you’ll love!” Yeah, right, read the fine print and change in terms notices. As I have outlined in my post about likely motives on the part of Chase executives, they too, are very likely to be self-serving.
I acknowledge that it’s not just Chase executives who act in their own interests, we’re underwriting a life of luxury for many of the bail out recipients (while we toil in the mines, in servitude).
I have just read an interesting article on the Consumerist site, “Banks Using $700 Billion Bailout To Buy Other Banks, Not Make More Loans,” concerning Chase’s intentions in terms of the bail out money; the article is based on what I perceive to be an astute analysis of previous reporting in the New York Times. It shows that I am not the only one who has noticed that Chase is looking to take, take, take, using our taxpayers’ bail out money to buy up other distressed banking assets. Of course, when one couples the information in the aforementioned article with the fact that Chase is concurrently screwing its own customers (lying to Congress about providing “opt outs,” and engaging in some really despicable acts in terms of its treatment of account holders who were promised promotional rates when Chase obviously intended to trap), the picture becomes quite clear: we’re in a struggle that’s as old as the quest for freedom itself.
The lords in banking have taken the power (because of their lobbyists and cozy relationships with regulators), and we are the serfs. The more I learn, the more I come to reflect on Revelation 6:8: “behold a pale horse: and his name that sat on him was Death, and Hell followed with him.”
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on Jan 3rd, 2009 at 12:58 pm
[...] The lords in banking have taken the power, and we are the serfs … [...]
on Jan 21st, 2009 at 11:52 am
I, too, have joined the ranks of those getting screwed by Chase. Same as other posts I’ve had a fixed 3.99 rate since July of 2006. No late payments, no missed payments on this or any other debt. Now an increase from 2% to 5% of balance due, plus the $10.00 service charge at 27.24%. Only options are to 1)suck it up 2) pay it off and close account or 3)agree to a new interest rate of 7.99 and eliminate the monthly fee and go back to 2% of balance due. This is so not right. No other business would be allowed to use such a tactic. It’s easy for people who don’t have credit card balances to simply say “pay it off”. It doesn’t matter how or why you have credit card debt. In a perfect world none of us would have any debt, but unfortunately we do. The problem is with credit card companies being able to change terms mid-stream – for any reason or no reason. The Chase customer service supervisor I spoke with told me he was better than me because he didn’t have any revolving debt – to which I replied “well, fortunately for you,there are those of us who do, otherwise you wouldn’t have a job like so many of the rest of us. I don’t know how these people live with themselves. Another question – why does a company that posts a 700+ million dollar net profit for the last quarter of last year need a bailout?
on Jan 21st, 2009 at 11:59 am
Me again… glad to see comments enabled here (seems like they are not on many of your posts).
The scripture to quote over yourself in this hour, is Psalm 94…
Justice is coming. Mercy is already here.
on Jan 21st, 2009 at 3:26 pm
Hi Julie,
There are people who are more fortunate, and they can pay for everything on a cash basis — good for them (I’ve always had to work, and your reply to the supervisor is correct: banks need to lend in order to make money).
The individual with whom you spoke is not “better” than you, or me, or anyone else. I have a student loan, credit card debts, a vehicle loan, and a mortgage. I entered into each of those obligations in good faith, and I have paid on time, as agreed. Unfortunately, Chase has acted in bad faith, and I have proof positive that it lied to me (not to mention lying before Congress, and hundreds of thousands of other account holders, like you). People who tell lies, and cheat, and who are greedy, or not better. They may lead lives that lavish them in material things, wear nice clothes, and be cash-rich, and that probably makes them think that they are better. But, I have ethics; I have people who respect me because I am a person of honor. At the end of the day, as a teacher (relative to my “day job”), I lay my head on my pillow knowing that some of my students (those who want to, and persevere), will lead lives as entrepreneurs. I would not be so presumptuous as to take credit for that, but I do spend my time introducing them to information, resources, and ideas that they may not have had. I’m proud of my work. I serve others.
That supervisor serves only his own and Chase’s twisted interests. Chase needs the bail out money to go bargain shopping, buying up other banks that are in financial distress. If a company or an individual is cash rich, this economy provides a virtual smörgåsbord of opportunity to “buy low” (and later “sell high”; and it’s even better, for them, using taxpayers’ money).
on Jan 21st, 2009 at 3:38 pm
This is my first experience using WordPress with comments enabled, on an active site. I’m learning the software as I go, and I know that I am messing up some of the settings. There are also some methods and tools for keeping up with everything and everyone, with which I have limited experience (you said “Me again…” — I know I just replied to your contact form submission, but if you have commented here, on the site itself, I’ll have to find it!!!).
I do have a personal policy of trying to respond to any legitimate communications that come my way (here, at the university where I am employed, et cetera), but I am a bit overwhelmed with work, and with WordPress (behind the scenes), so I appreciate your patience with me. I like your suggested quote from Psalm 94.