A priori, I have written more than one post on “good” faith” versus “bad faith” — without being a lawyer I still knew that this was an underpinning of the legal system — and I was really pleased to see a mention of the fact that Chase was violating this principle of good faith in some of the passages that were in the class action suits that have been filed.
Because Chase is in violation of a matter of principle, relative to my sense of values (and evidently a lot of others feel the same way — they were paying their bills and honoring their obligations in good faith), I am hoping that what I have started in a modest way with the ChangeInTerms site can keep growing until a virtual tidal wave of angry consumers forces Congress to finally install some regulations that put a stop to the egregious practices on the part of all of these credit card companies — Chase being recently, the worst.
It will not be easy and a handful of faxes to Congressional representatives will not do. Indeed, it was interesting to me the other day, after watching the hearings during which the bank executives were supposedly “put on a hot seat,” one of my friends who had also watched the event observed how Jamie Dimon’s “movie star” image allowed him to “get away with murder.” She even noticed one of the female Congressional representatives swooning over “Mr. Dimon.” So, as long as he’s such a ”darling” in the eyes of our so-called representatives, ”we the people” have a big problem: there will be no meaningful regulation; credit card companies will be allowed to find workarounds for whatever regulation does arise; and the abusiveness will go on.
The real problem is that when any person or any entity is determined to act in bad faith, then their sole mission in life is to find a way to exploit another “mark” (or a larger group of victims). Therefore, their “business model” consists of finding ways to undermine systems and take advantage of anyone who stands out as a potential victim for exploitation. Does this sound like an apt description of how the credit card industry is operating, to you?
Of course, this all means that I am simply standing up for what’s right. Relative to my way of thinking, this issue is as old as good versus evil. In addition, this is not just about me. I am really very worried about small businesses. I am also extremely concerned about what will happen if Chase gets away with this and other credit card companies decide to impose the same or similar changes. In a way, Chase does not have to say, “Hey, look at me!,” because being the “big dog” that it is relative to the credit card industry at large, other credit card issuers are watching, and they may get the “bright idea!” that they can do this, too. Therefore, it is absolutely critical for the protection of consumers and small businesses that Chase becomes a “poster child” and carries a message up and down main street:
“This time, on this day, this credit card company, went too far over the line with these customers, and it got burned to a crisp.”
I would also hope that even those who are not involved with this present issue with Chase would at least project themselves into the situation as taxpayers who do not appreciate such heavy-handed tactics or double-dipping. What Chase is doing flaunts unbridled greed (taking bail out money and simultaneously fleecing customers who were not doing anything wrong). Among this larger group of citizens, I happen to know that millions of customers have been hit with any and every kind of fee that the credit card industry has managed to conjure up (e.g., a payment was posted “one hour late“; the payment due date changed; or was purposely scheduled on a holiday).
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on Feb 15th, 2009 at 11:58 pm
There are presently two civil lawsuits against Chase.
Both include a “cease and desist”. This would stop Chase from doing any special rate promotions until there was a resolution of this issue. If they are successful, I would think this would be a big blow to Chase.
on Feb 16th, 2009 at 12:17 am
Hi Steve,
We are counting five lawsuits and one investigation. You can check the navigation links on the right hand column on this site, as I plan to list every single lawsuit that arises about this matter (eventually, the lawsuits will be consolidated). Meanwhile, I certainly agree with your observation. Actually, it seems like only yesterday that I was hoping that even one suit would arise, and wondering if any law firm would take notice of the outrageous behavior that was being perpetrated by Chase. Thanks for your comment (I appreciate seeing you on the site, again).
on Feb 16th, 2009 at 11:32 am
I have two accounts with Chase.
The change in terms happened at a very inoportune time for me. I had just sold my home, and was in the process of applying for a construction loan on our new home.
I had the resources to pay the higher minimum, but the higher payments were going to kill me on my debt ratios for my construction loan. As a result I felt absolutely compelled to accept the 7.99% percent rate, so that I could keep my minimum payment at 2%.
SURPRISE – Received my february statements from Chase, and even though I had agreed to the 7.99% rate, they had refunded the $10.00 fee and left my promotional rate alone.
Did they do this for everyone?
This has been a real wake up call for me. I am anxious to pay off my outstanding balances on these cards as soon as possible, and never return.
on Feb 16th, 2009 at 12:10 pm
Hi Brent,
I do not know whether Chase is backing down regarding other account holders, or not. With 5 class action lawsuits already filed, some of which include a “cease and desist” request (see “Steve,” item 1, above), it is possible that customers may receive either injunctive relief, or permanent relief.
What we are working for on this site is to make sure there is such an overwhelming backlash against Chase that three things happen: 1) it walks a way so “bloodied up” from this fight that it does not dare to ever try pulling a stunt like this again*; 2) the credit card industry sees the result, and no other credit card issuer tries to mimic Chase; 3) regulators act now, by passing a bill such as the C.A.R.D. Act.
As for me, I would still pursue writing a “textbook” case study on this entire incident. I also have certain personal damages that I am exploring.
* The lyrics to Jim Croce’s song, Bad, Bad Leroy Brown, are running through my head right now. I think I would liken “Chase” to “Leroy.”
on Feb 16th, 2009 at 8:24 pm
My law firm and another Columbus, Ohio law firm are also investigating this matter and considering filing a lawsuit on behalf of Ohio victims of this practice.
on Feb 16th, 2009 at 10:14 pm
Not actually going through with it? How nice for you all! How bout those of us who remade loans to pay them off?
(For me this was $3K to do my 1st mortgage)
I want Chase to pay!
on Feb 17th, 2009 at 2:30 pm
Marv, I agree with you.
Chase has liability regardless of whether or not they follow through. For many the harm is already done.
If this caused as much stress for you, as it did me, I would definitely think that Chase owes us something.
Good Luck!
on Feb 17th, 2009 at 5:26 pm
I too am a victim of the Chase “change in terms” switcheroo. Glad for this site and a big fat KUDOS to you Dr. Lahm, for fighting the good fight. You have more support then you know and you are appreciated by many of us who pay on time and as agreed and need a communal voice to protest what’s unfair.
Just so you know, you must be making an impact because two weeks ago Chase may have figured out an alternative way to generate “fee income” from us unsuspecting consumers (maybe as a way to replace revenue soon to be lost with the settlement in all these pending lawsuits…who knows?). Anyway…
If you have a Chase checking account, you will no longer be told your “current and available checking balance” via the telephone automated system. You will only be told your “available” balance – which means that you will not really know how much you actually have in your checking account until everything “pending” (like deposits and atm withdrawls/fees) clear – sometimes days later. If you guess wrong or miscalculate, guess what??? overdraft fees galore! Whoever had that idea at Chase probably got a raise (I know because I used to be in banking for 15 years)
One last thing, I noticed that when I call Chase (and BofA too) credit card automated telephone system, I no longer get my available balance as of the day I call (or go online). I now only get my available balance “as of the last statement dated [insert closing date here] even if that date was was two weeks ago and I made transactions since the closing date, they do not report….talk about TRICKY. Again we consumers will now have to guess at what you REALLY have available on our credit card… and don’t guess wrong …well you know.
Thanks for the site – needed to warn others in case they get caught in these traps designed to trick us in making very EXPENSIVE mistakes.
on Feb 17th, 2009 at 5:54 pm
Hi JC,
Thanks for your detailed discussion regarding other ways that banks are now trying to invent, obviously to usher account holders into making mistakes, new fees. It astounds me that there does not seem to be a banker anywhere who looks around and thinks to him or herself: “We could really gain some incredible loyalty among a gigantic following of customers if we just played fairly, and created a reputation for not trying to spend all of our waking hours — probably dreams, too — trying to devise new traps to put the screws to people.”
I do appreciate the praise and vote of confidence (since developing this site has certainly involved a ton of work, and no pay, when I could be spending my time trying to accomplish other things, like finishing book projects that I have been working on for years). However, as far as I am concerned, this fight is not going to be over until I see a press release from Chase, retracting its despicable and unfair change in terms. I am sure that everyone will appreciate the WARNINGS that you were kind enough to outline. Take care.
on Mar 21st, 2009 at 1:06 pm
I looked at my Chase account online today and noticed that the amount due was not the 5% of my balance-was only the 2% as it used to be but I could not view my statement to see if the $10.00 had been added to the current statement–Upon calling Chase customer service I was told that the page I was looking was correct but I will not be able to view my current statement for twenty-four to forty-eight more hours. I then asked whey my payment amount had been reduced and he stated that I did not accept the 7.99 they offered and they had put me in the wrong catagory?? so they switched me back to 2% minimum payment and he also added that I would be credited $10.00 for each of the last three months. I hope everyone gets to go back to their original terms on their Chase card. I believe they must be getting worried about all of the class action lawsuits going on right now.
on May 1st, 2009 at 11:22 am
[...] of ethical behavior in all of my courses (the Chase behavior certainly makes for a great “textbook case study“). Further, you can “bet your sweet bippy!” that I also warn students about the [...]