Here is the link to the House Financial services Committee lineup for February 11, 2009 (which includes Chase CEO Jamie Dimon):
http://www.house.gov/apps/list/hearing/financialsvcs_dem/hr021109.shtml
February 11, 2009, 10:00 a.m., 2128 Rayburn House Office Building. This is the link (in advance) for Dimon’s testimony (those who testify send their testimony in advance, so hopefully, the follow-up questions will put these bank CEO — sleaze-bags — on the defensive (not necessarily the case that this will happen as we know, it’s a rigged game with banks and Congress most of the time):
http://www.house.gov/apps/list/hearing/financialsvcs_dem/jamiedimon021109.pdf
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on Feb 11th, 2009 at 2:55 pm
When pressed by congresswoman Shelley Capito, Dimon stated that if she heard of consumer wrongdoings, she should contact him and he would straighten it out.
I suggest we all write him and copy her asking that the “finance charges” be repealled, as well as the 5% repayment.
Its interesting to hear one of the announcers on the radio this morning saying that victims of Chase should opt out. My guess he didnt know there was no opting out…that I know of. (besides the increased rate repayment).
on Feb 11th, 2009 at 5:47 pm
Hi Sid,
Chase spokespersons have stated to members of the media (in text, so I have not heard the actual “attitude” that might be conveyed in a spokespersons tone of voice) that there is no “opt out” — but it came across as boastful to me, even in printed form. This is the precedent that is the most dangerous thing of all.
I faxed Congresswoman Capito during the lunch recess (did not expect an answer, since her time was up). I wanted her to know that Chase has not been playing fair, as Dimon implied in his comment. The increased payment is not an “opt out,” by definition. Neither is paying off the loan in full (I mean really, any account holder at any time, who is in a position to pay a balance in full, “on demand,” always has that option — duh). Thanks for your comment.
on Feb 11th, 2009 at 5:49 pm
P.S. Sid, what we have to do is “track down” and correct any member of the media who makes uninformed suggestions. I am counting on help from site visitors. I correct as many as I can.
on Feb 12th, 2009 at 2:49 pm
Dear All,
I have just sent a copy of the class action complaint to Senator Levin’s Permanent Subcommittee on Investigations. I called and spoke with a member of the staff Ryan McElveen. They were not aware of the suit. I emailed him the PDF and he was written to say he received it.
Below is the text of a letter I sent two weeks ago to my Rep and Senators (including Schumer, who is on the Sebate Banking Committee) , as well as to Barney Frank, Carolyn Maloney, and Senator Levin’s investigative staff on the Permanent Subcommittee on investigations.
=============
January 27, 2009
RE: Bait-and-Switch Conduct by Chase Bank
I am writing to ask you to take action to prevent JP Morgan Chase from causing a financial catastrophe for hundreds of thousands of people who have been, until now, Chase’s most reliable credit card customers. CEO Jamie Dimon was recently quoted in the press as fearing the bank may face default on its credit cards. If so, they are, at least in this case, creating a crisis where none previously existed.
The recent conduct by Chase that is the subject of this letter may affect as many as 700,000 customers. I, like the others whose stories I was able to find at on-line consumer forums, have had a credit card with Chase for many years. Due to our unblemished payment record, we have all been accorded substantial lines of credit.
Within the past few years, all of us have been offered low interest fixed rate loans (in the 3-5 % range) for the life of the balance, with no fees, and a monthly minimum payment of 2% of the balance. Chase has now unilaterally and coercively changed the terms of the agreement.
I was recently notified, as were the other shocked and angry customers, that my minimum payment would now increase to 5% of the balance, a 150 % increase, plus an additional $10 per month “finance charge” merely for having the account. This effectively raises my monthly finance charges 15% above the promised “life of the balance” rate. The terms of the offer that we all agreed to stated that only late payment, over the limit or returned payment were grounds for Chase to void the agreement. We have not violated any of these terms.
Just to give you a sense of why people are so upset, I was told my minimum monthly payment would jump from $280 dollars to $700. Other customers reported similar figures. When I first accepted one of these offers several years ago, I was told my monthly minimum would be $400 on a 20K balance decreasing over time as the principal decreases. We have budgeted for decreasing payments, not ones that suddenly mushroom, or should I say “mushroom cloud?”
Some customers reported that when they called Chase to object, they were pressured to agree to new terms: that they could maintain the 2% payment and avoid the new finance charge if they would agree to a doubling of their interest rate, and after two years, another increase to a “market rate.” This suggests that the goal of Chase’s action is to force a renegotiation of the terms under duress, or by creating a default, which voids the “life of the balance” agreement.
During, I think, Senator Levin’s hearings on credit card practices, I heard testimony that customers had the option to opt out of a rate increase by closing the account and paying the balance off at the original terms. I (and others) would like to close my account with Chase under the original terms, but Chase has not made this option available. I would like you to ensure that they do.
The only option we were given to avoid these increases was to close the account by paying off the balance in full in the current statement, something most of us are in no position to do, especially given the economic situation. The same out of control greed that led Chase and the others to create a financial crisis now threatens to pull many people underwater by forcing us to make unbudgeted payments above our means.
I know I’m not the first person to observe that government action thus far to address the economic crisis has mainly served to heap funds upon the miscreants and done little to nothing for the victims. We aren’t asking for a bailout, just that Chase be required to honor the original terms of the loan, as we have done, and to end our relationship, if we desire, under those terms. I am sure that Chase has a team of lawyers who believe this change in terms is legally defensible, but it violates the common understanding of a good faith agreement.
Chase’s conduct is particularly outrageous given that they are borrowing at ZERO percent from the Federal Reserve in addition to receiving billions of dollars from the public treasury. Testimony on Capitol Hill and press reports have stressed the problem of banks refusing to lend these funds, but Chase has a different approach.
In September, I received yet another a solicitation from Chase urging me to access the unused portion of my line with a 3.99% fixed rate “life of the balance” offer. (please see attached.) Chase announced the change in terms in November, though many of us who use paperless statements did not realize it until this month. Surely the decision to change terms was already made when they attempted to solicit more borrowing from their unsuspecting customers in September, promising a fixed rate, then taking an action to try to force customers into a higher rate, one that they never would have agreed to. This is a form of bait and switch.
Many Congress members and Senators have spoken of the need to restore confidence in “our” banking system. It’s not “my” banking system; I have no confidence in it. In fact, I consider these banks to have demonstrated that they are a menace to society, and am resolved to do everything in my power to work towards a situation in which I will no longer use their “products.” I think you need to know that I’m not alone. While Congress is working to keep them in business, angry customers all over the country are discussing how to organize to put them out of business.
I would appreciate a response as to what you are going to do to protect your constituents from these unscrupulous practices, and how soon you are going to do it. I hope very soon, because people are being pushed over the edge. Please let me know what I can do to assist or support you in getting justice for Chase cardholders.
Sincerely,
on Feb 12th, 2009 at 11:31 pm
lyn,
Thank you very much, for your advocacy. I have responded to your personal contact efforts, and I will look forward to what I imagine will be an opportunity to 1) fight Chase; 2) stop the insanity that has gone on with respect to the ever more egregious practices of the credit card industryand 3) take back “our” banking and financial system (since “we the people” are ultimately the source of bail out funds).
on Feb 15th, 2009 at 9:13 am
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