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Buzz in Press about Chase’s Egregious Actions is Getting LOUDER!!

I’ve noticed a slew of new reports about Chase’s egregious actions against its best customers. Here are a few stories from today –

WXIA-TV (Atlanta) – JP Morgan Chase Adds $10 Fee to Credit Card Accounts

Excerpt: “The company says it plans to add the 10-dollar-per-month fee to customers who have low promotional rates, and those who have carried large balances for more than two years and haven’t made progress in paying off their balances.”

WTAE-TV (Pittsburgh) – Call 4 Action: Chase Adds Fee For Low-Rate Credit Cards

At a time when many consumers can least afford it, JP Morgan Chase, the country’s largest issuer of credit cards, is ordering some of its cardholders to pay more….

Such tactics are emblematic of an industry in financial trouble, according to University of Pittsburgh business professor Jay Sukits.”

A representative for Chase said the change affects less than one-half of one percent of its accounts, adding, “Those who are impacted have carried large balances for over two years while making little progress in paying them off.”

Delaware Business Ledger – Chase credit card fees on balance transfers drawing flack

Excerpt: “The Wilmington-based credit card business of JPMorgan Chase is coming under fire for fees and higher minimum payments for some customers.”

WCPO (Cinncinati) – Credit Card Rates Soaring…Even if you Have Good Credit

Excerpt: “But banks — struggling to survive in this credit crunch — are raising interest rates on even their best customers, according to a recent report in USA Today.

The report says Chase Bank is going a step further: adding a $10 monthly fee to many Chase cards.”

The Dallas Morning News – More Consumers Find Credit Card Terms Changed as Issuers Cite Rising Risk

Excerpt: Chase notified customers in December that it was raising the minimum card payment from 2 percent of the unpaid balance to 5 percent and was adding a $10 monthly fee that would start with the January billing cycle.…By raising the minimum payment by over 150 percent on short notice, effective in January – when most folks are on a tight budget – they effectively force people to accept their alternate offer,” she said. “I believe their timing was deliberate – the timing of the mailing of the disclosure during Christmas rush and the effective date of the change.”

USA Today – Chase adds fee for low-rate credit cards

Excerpt: Cash-strapped consumers can’t seem to get a break from high credit card fees and rates.

In the latest fee rolled out by a bank, JPMorgan Chase, the nation’s largest card issuer, has begun charging hundreds of thousands of borrowers a $10-a-month, or $120-a-year, fee. Industry watchers say the fee is unusual because of its size but also because Chase is adding it to borrowers’ monthly balances, where it accrues interest. The bank is also raising the same consumers’ minimum payments to 5% from 2%….

The change affects consumers with low promotional rates who have carried a large balance for more than two years and made little progress paying it off, says Chase spokeswoman Stephanie Jacobson.”

Notice how in nearly every report, Chase continues to perpetrate the myth that these changes only affect consumers who carried a large balance and made little progress paying it off. In fact, in my case and in Dr. Lahm’s case and my guess is in the majority of other cases, significant progress was being made in paying off the balance. I borrowed $38,400 three years ago and the balance when the change-in-terms was enforced was slightly above $20,000 – nearly half paid off. I think paying off $18,400 was making significant progress.