Let’s see, if a “similar lot” was $70k “not more than 9 months ago,” but now worth $24,900 (assuming enough similarity to be considered a comparable in a real estate appraisal), then the loss was $45,100 ($5011 per month).

Thank goodness, in these days of economic turmoil (with credit card companies doing all that they can to bully consumers and strangle small businesses), there are “RECESSION PROOF!” safe havens where those who have the financial wherewithal can invest!

Oh well, not to worry, with the “real estate professionals” working the market here in Murfreesboro, TN, it will probably be a while before our present home sells and we can move on to NC, anyway.  Yep, yesterday, one of those “professionals” called from our driveway to show a (local) “looker,” who wanted to see our home.  Forget the one hour notice request on the MLS, “we’re here to see your house!”

It’s days like those that make me want to give up.  But I don’t.  I make the drive.  305 miles, each way, every week, to work (plus the “in-town” mileage, when I am in NC).

I have a deadline to meet this weekend.  I’m working on a conference paper (on credit cards and small businesses).  You see, if I did “give up” on selling our home (by walking out like so many others have done), then I would not have much of an argument any more, when I try to speak out on behalf of struggling entrepreneurs (who are being squeezed — mercilessly — by credit card companies).

I have paid my bills and met my obligations, no matter what.  (As I drive during the treacherous trips through the mountains on I-40 eastbound in eastern Tennessee and western North Carolina, I at least know that if something happens to me, I’ll go with a clean conscience; I’m guessing that an apt description of “hell” is being a credit card account holder for eternity, so I definitely want to avoid going there.)

The FED (which is — unbeknown by most citizens — “owned” by the national banks and not “Federal”) and all of the bailouts have done nothing but enrich executives, who have enjoyed the parties, trips, perks, bonuses, and salaries of corporate big-wigs while they have had the same time, engaged in a reckless campaign against ordinary citizens (worldwide).  Meanwhile, homeowners, small businesses, and middle class consumers at large are slowly having the life sucked out of their wallets.

Just imagine: What if we invested $750 billion in bail out funds on the 21.7* million very small businesses in the United States?

The numbers are so staggering, they’ll make you dizzy (especially if you wear eyeglasses):

$1,000,000,000 (one billion dollars) x 750 = $750,000,000,000

$750,000,000,000 / 21,700,000 (very small businesses) = $34,562.21 (each)

I’d certainly bet that if the first round of bail out funds had been invested in small rather than big businesses, we would have stimulated the economy.  But no, we bailed out big banks and car companies, where a handful of executives (each typically earning in excess of a million dollars in salary, so you do the math) became even richer in bad times, on the backs of all of us.  I know that these executives are about the only ones who can afford scooping up deals on lakefront property right now.  Further, as I have previously written, we could have averted the worst of the mortgage and foreclosure crisis as well.

By the way, regarding one of biggest problems, unemployment (which as you recall, came next in our downward spiral — while we bailed out “big” businesses and executives), and much of the pain that has come from that, could have been avoided if we had invested in small businesses.  Also according to the SBA Office of Advocacy, small businesses: “Employ just over half of all private sector employees”; “pay 44 percent of total U.S. private payroll”; and, “have generated 64 percent of net new jobs over the past 15 years.”

Want to know why we’re suffocating, despite ever-so-slight signs of recovery?  A relatively small number of big businesses and their executives have prospered, and the rest of us, along with our children, and grandchildren, will pay, and pay, and pay.

* Those so small that they have no employees; number taken from SBA Office of Advocacy 2009 FAQs — out of 29.6 million total U.S. businesses.  Yes, the vast majority of all businesses are small businesses.  The vast majority of start-ups “bootstrap,” and many of these use personal and business credit cards as a source of capital.

© Dr Robert Lahm for ChangeinTerms.com, 2009. | Permalink | 5 comments | Add to del.icio.us
Post tags: "Bail Out", advocacy, banks, business credit, consumers, credit, credit cards, economy, small business

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Chase wants to give BIG rewards to holders of this card unlike their egregious loan-shark-like actions implemented against the peons who were upholding their side of the agreement by diligently paying off their credit cards. Playing reverse Robin Hood, no doubt….squeezing the the little guy to make credit card life better for the affluent.

Excerpt: Quote from Joan Bassett, marketing director for Chase Sapphire “We’re giving cardmembers more value and positioning Chase well for the long term,” said Ms. Bassett. “What we’re seeing in our data is consumers are looking to get more out of their reward programs, looking to redeem them and expected to be rewarded more for their loyalty.”

Change-in-terms for the Wealthy

Chase – Targets high-income consumers in multimedia effort

“NEW YORK JPMorgan Chase is kicking off a national ad campaign in support of its new credit card, Chase Sapphire, a service for upscale consumers that rewards users for spending.

In a bid to reach shoppers with deep pockets, Chase Card Services is investing an estimated $30 million in measured media to introduce Chase Sapphire, ….. Sapphire is being marketed to consumers in the upper 15 percent of all U.S. households, with incomes of $120,000 or more.”

This effort is a little different than the change in terms we all experienced with Chase. Since Chase continues to empty our pockets, it stands to reason as our pockets get emptier, Chase would go hunting for deeper pockets. Recently I’ve been reading complaints posted by people whose Chase Reward cards have also had a sudden change in terms – regular folks who will no longer receive the rewards they signed up for and have been enjoying for years. When asked for an explanation, Chase continues to recite the “it’s the economy, it’s market forces, it’s because we can” mantra they used with us…ad infinitum, ad nauseum…

Apparently the “economy, market, and because we can” are motivation for this new breathtakingly expensive marketing gambit. Amazing, isn’t it? The exact same market conditions which cause one group of long-term, reliable customers to be cruelly punished is the reason a huge carrot is to be offered to another group of customers that does not yet exist.

Chase Long Term Positioning Plan : A bird in the hand is worth nothing, while hypothetical birds in the bush are worth, well….a speculativeTHIRTY MILLION DOLLAR AD CAMPAIGN!!!

Watch for the $30,000,000 Sapphire ad campaign – coming to a television channel near you! There must be a untold thousands of affluent customers who have had their heads buried in the sand this past year and either don’t know and/or don’t care that Chase has been treating millions of their customers like dirt. Rich, deep pocketed consumers, who are just dying to hop on Chase’s Sapphire Band Wagon.

Chase will treat wealthy Sapphire card holders right and will never change the terms on them, right?

If you believe that, I have a bridge I want to sell you…..

A Chase Promise made is a Promise you can count on (Chase breaking).

© pdurant for ChangeinTerms.com, 2009. | Permalink | 18 comments | Add to del.icio.us
Post tags: change in terms, complaints, consumers, credit, credit cards, economy, interest, interest rate

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“I would print out flyers and leave them outside a chase bank near me, but am afraid of hidden cameras. do they have any recourse?” 

The updated flyer arose after “FightChase” contacted me and sent a copy of his original version (one that he was passing out to Chase Bank branch managers while protesting in front of their respective branches with a sign), and I worked to make some improvements.  Subsequent suggestions for even further improvements have been made (I don’t mind making revisions, but, I actually think it would be nice to have tons of people creating their own version of flyers as a form of self-expression and revolt). 

Meanwhile, I responded to Steve with some remarks about hidden cameras, but I also suggested that it’s probably going to be more effective to distribute the flyers to “everyone on the planet,” besides Chase (or at least in addition to, Chase).  I then indicated that I would create a list of ways to distribute flyers (without having to hand them to someone face-to-face).  I’ll start the list, and call upon site visitors to add other suggestions.  (I frankly am engaged in this fight because I think that what Chase is doing is flat-out unconscionable, so be open-minded about who may be concerned or in a position to influence others; it is essential to leverage the fact that one person might transmit the message to another, and another — you get the idea.)

You must see this situation much like the science fiction movies, “War of the Worlds“  or “Independence Day.”  Chase has the powerful weapons and intends to conquer and (economically enslave) the planet, and the only weapon we have is a virus.  In this situation, Chase’s “powerful weapons” are the media influence it exercises as a result of its tremendous ad spending capacity, and the fact that it manipulates the legal environment (with lobbying or “do-gooder projects,” while sweeping the stories about its victims under a rug).  Thus, we have to spread the word on the Internet, and via old fashioned word-of-mouth (also related to the term, “viral marketing”). 

Perfect example: Chase is spending heavily in The Orange County Register, and which newspaper seems to be ignoring this issue?

As I have been writing, a hit song from Paul Simon has been playing in my head, “50 Ways to Leave Your Lover” (I’d like to end up with a list of 50 ways to distribute flyers, thereby encouraging consumers to “Leave Their Chase Banker”).  So here’s a start:

Post on public bulletin boards (e.g., in grocery stores, on college campuses);

When mailing your payments for ordinary bills (such as a power bill), stuff one in the envelope (if you think it is processed by a human being);

After dining in a restaurant, leave one on the table (or better yet, if there’s a newspaper sitting around, place it inside – that way the flyer will probably circulate more widely);

If you take public transit, leave one in places where you (or other passengers) sit, wait, or ride;

A variation for “public transit,” in airports, leave them in waiting areas (an if you are flying, stick one inside the free air traveler magazines in the seat pocket in front of you);

Leave one in a public rest room (the way Chase acts — and gets away with it because it practically “owns the law and the media” reminds me of vulgar graffiti, anyway);

Send a flyer to any of Chase’s affinity partners (those with branded cards, with Chase, for instance);

Send a flyer to every bank or credit union in your town, other than Chase;

If you are visiting a doctor’s office, your dentist, etc., leave one in the waiting room (again, following the logic above about inserting flyers in newspapers, you may want to place it inside a magazine);

Send them to legislators (maybe with a respectful note: “Either you work to stop this abuse, or you will lose my vote for reelection”);

Leave one in a shopping cart (people will often opt for a cart with nothing in it, so the flyer will just sit in a cart — but the headline might grab some attention);

Send the flyer to any CPA (bookkeeper, accountant);

Send the flyer to individuals who provide financial planning or similar advice;

Some libraries and public buildings have places to post flyers;

If you identify “opinion leaders,” make sure they have a flyer;

If you are an alum from a university that happens to have partnered with Chase in selling credit cards, send one to your alumni association president, university president, and board members (they probably will care, if the relationship might lead to bad PR);

Send them to mortgage lenders (may be a long shot for people to refinance homes, but Chase has certainly given a reason to do so, if that is an option);

Okay, like I said, the above was a start; you all can keep going.  Please comment with more “creative ways” to spread the flyer, and our message to Chase:

NOW WE’RE STILL COMING AFTER YOU

© Dr Robert Lahm for ChangeinTerms.com, 2009. | Permalink | 3 comments | Add to del.icio.us
Post tags: consumers, credit

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At the time, my wife and I thought that since everything was packed, and our ultimate destination was North Carolina, anyway, then we should go ahead and move it.  (Usually there is little or no moving allowance by the way; it’s Penske trucks — and a massive DIY packing project when we have moved — ever since I began my second career in academia.)

Over the phone (although we had seen the property on a house-hunting trip when we were under the impression that our home sale would close), we leased a 3-bedroom, 2-bath condo.  Our thinking was that we would live there (in the condo), and visit the house in Tennessee until it sold.

We keep an extremely clean and well maintained home (I was without a home, i.e., homeless, at one point in my adult life, so I am very obsessive-compulsive about taking care of what we do have), and our real estate agent expressed confidence in the property’s prospects for selling again soon (during the fall 2008).  The condo manager was kind, and even negotiated an “out” clause in our agreement, in the event that we did sell.

We left just enough things in the Tennessee home to get by: the guest bedroom bed, a scaled down but working kitchen, a few chairs, a small (old-style) TV (we don’t own one of those fancy, newfangled flat-screen TVs), some folding chairs and folding tables, and just a few pieces of furniture in the great room.  The kids’ rooms were emptied completely.  The washer and dryer were moved.  Most clothes, linens, and anything such as personal effects, photographs and memorabilia: they were packed and moved.

After my first week of new employee orientation, we all got in the car and headed back to Tennessee, from the condo in North Carolina.  When we arrived in the early hours of the morning (about 1:00 a.m. on a Saturday, having left on a Friday night), we found our door unlocked.  Yep, a real estate agent had shown the home and failed to lock the door properly.

I could fill up a whole new blog expressing my sentiments and experiences with real estate agents, if I only had the time (noting that blog is short for web log, which originally suggested an online diary).  I’ll skip that for now, because I want to simply point out why we came to the immediate conclusion that someone had to stay in Tennessee, to baby-sit the house.

This was because irresponsible, unprofessional, incompetent realtors (spell-check wants me to capitalize here, but I refuse to do so), don’t give a second thought about sellers’ properties (all they work for is commissions, those so-called buyer’s agents are not in a position to be either “free” or objective when they earn their living by taking their “cut” off the top of every transaction).  They act like your property is their property, to show (calling from a cell phone in your driveway), but they sure as heck don’t bother to extend any respect otherwise.

Since my job was in North Carolina, my wife and kids were the ones to stay with the house for sale.

“Should we bring stuff back?,” we wondered to ourselves.

“No, we’ll wait it out — the house will sell again, soon,” we said; our agent said.

In the meantime, my wife and kids lived as though they were “camping out,” inside of a suburban home.  People have suffered worse; I have suffered worse (as I said, I was once without a home for a period of time).  But, things were not working out as we expected.  I commuted.

My university office was in transition, because the College of Business building was being renovated.  I was advised not to unpack, there.  I had no intention of unpacking most of what had been moved to the condo, either.  Everywhere, most of what we had was either “nothingness” (in Tennessee) or packed and stacked.

As a teacher, I have always enjoyed bringing in exhibits to support what I may have to discuss on any given topic; these resources were packed.  As a researcher, my books and files: packed.  I was not getting “settled in” at work.

As the fall semester was winding up, we were debating where to spend Christmas.  We had signed with a new real estate listing agent (our third), and among the assurances given in the agreement was one that stated that the home would be secured after any showing.  We ended up spending Christmas day in North Carolina, but as can be learned from reading my How Chase Card Service Stole Christmas eBook, that day was destroyed.

The new spring 2009 semester soon began.  My dear cousin was diagnosed with pancreatic cancer; my wife was scheduled for major surgery in February.  Chase had threatened everything I had worked for, for years.  Chase jeopardized my family.  Chase cornered me, although I had done nothing wrong, and evidently, hundreds of thousands of other families and small businesses.

I have been fighting my own personal battles for a long time: to acquire a formal education as an adult learner at the undergraduate level (finally, at the age of 28, I earned that first degree); as an employee in various industries; as an entrepreneur (who has both failed and succeeded); as a husband and father; and in recent years as an academically employed individual.

It’s true.  I have incurred and carried a significant debt load.  However, my debts are primarily associated with my decision to return to graduate school, with the aspiration of becoming qualified to teach; my desire was and is to try to help and serve others.  I had been paying down my debts.  I had been meeting my obligations (I am still doing both, but I am referring to where I stood as I began the spring 2008 semester), and Chase, had decided to attack its most loyal customers.

The spring semester marched on:

My wife had surgery, and recovered (stranded for six weeks with food at arm’s reach on a folding table) in a near-empty house, primarily under the care of children;

Our third real estate agent resigned earlier than the contract specified (she did not have the professionalism to do so in person; she sent emails and subsequently an administrative assistant to have us sign off on the termination — good riddance!);

My dear cousin died;

Chase sent its letter stating that it had “incorrectly” included my account in its infamous “5% minimum payment; ’service charge’ that ‘is a finance charge’,” change in terms;

(But) by then, my personal financial matters became public information, as I felt the only way to fight was to be willing to talk to the media, and use this blog to communicate my disdain for the abusive practices of credit card companies at large against consumers and small businesses;

By May, our house was on the market without a real estate agent (during this period, we observed some of the most unethical treatment of all);

By June, I gave notice at the North Carolina condo — I was moving (almost) everything back to Tennessee.  If we had to look forward to an indefinite period, during which we were still trying to sell, at least my wife and kids could live like normal people in our home;

During the month of June and July, I moved.  A lot of hard physical labor has been involved (my wife has recovered but she is in no condition to be doing “heavy lifting”);

A few weeks ago, in mid-July, the ChangeInTerms.com site went down.  The host suggested that it may have been attacked because a “malicious” hacker file was found in one of the folders;

Concurrently, Chase has mercilessly attacked hundreds of thousands more account holders, hurting consumers, small businesses, and all those who might be considered collateral damage – employees, families;

My emails have piled up;

One of my emails, from someone who knows me and about my advocacy and concern for entrepreneurs, states: “Just as you feared…..Here’s a small, growing business about to be put out of business by Chase’s change in terms.  These folks did what a lot of us did – used Chase credit cards to finance their business”;

My home is now put back together, and habitable (as of several days ago);

Long overdue personal matters have been serviced (tires, dental exams, and the like);

I don’t know where I will be living this coming semester, but I think it will be in hotels (at least I can come home more often, not worrying about our personal things being left in North Carolina);

Here is where I stand, now:

I think I have managed to restore the site, with the exception of the missing posts and comments since June 22, 2009.  I am very disappointed with the hosting situation — that’s a long story.  To make it short, data centers are often attacked, or there can be other naturally occurring issues that arise.  That’s what backups are for, and the reason the site is up again at all is because it was restored from a backup, except for the missing data which for some mysterious reason simply is not in that database – I have looked (at the actual database).

Meanwhile, the company that does the hosting is engaged in a transition, and is moving its customer base to new servers held under a different company name.  I can’t predict the future relative to that transition and the consequences that may arise.

I do not want to complain.  However, it seems that I have no choice but to state a lament: I have said I do not want donations because it sends the wrong message (the long version is elsewhere on the site).  Yet, it remains the case that help is needed in support of this cause in other ways.

I am not a programmer.  I have a career and a lot of responsibilities (and also a very challenging personal situation with a home that has not sold in Tennessee, while at the same time my job is in North Carolina, as detailed above, perhaps ad nauseam).

I have received a number of emails expressing concern that the site was down altogether or not functioning properly.  These tell me that I am not alone in my concern over the issues between credit card companies and their abusive treatment of consumers and small businesses.

That being said, I have felt very much alone in the technology support arena, and it has been up to me to “fix” these problems.

I’ll do the best I can.

No reader should interpret the above to suggest that at some point, frustrated with technology, I would throw in the towel relative to the larger cause.  The site is a tool in the fight, but not the only one.  When you are on a journey and the vehicle breaks down, then you get out and continue on by other means.

You push.  You pull.  You walk.  Or you crawl.

I am on a journey, and I sometimes get to travel fast, and at other times progress is slow.  It can be the case that everything comes to a standstill, or we lose ground and go backwards.  If you are with me, against the abusive treatment of consumers and small businesses by credit card companies, then rest assured that I will continue fighting.

As long as we are right and the leaders of credit card companies are wrong, they will never win the race.  Faith is mightier than fear, and with the former you shall prevail over all obstacles.

© Dr Robert Lahm for ChangeinTerms.com, 2009. | Permalink | 6 comments | Add to del.icio.us
Post tags: advocacy, change in terms, consumers, credit, credit cards, debt, small business

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Low cost assumable step-loan programs would have prevented much of what has ailed us and what will be ailing us for decades, had they been the first response on the part of government and policy makers.  They also would have likely prevented all the bail outs.  For example, loans starting at 2%, graduating to 3%, and then remaining fixed at 4% for the life of the loan (not the way Chase means, i.e., doesn’t really mean: “for the life of the loan”; rather, “fixed at 4% for the life of the loan, no kidding – we won’t come back and screw you in two years” loans) would have been a robust configuration to get the housing market moving again. 

The assumable part is a key element.  At the risk of dating myself, I have lived long enough to remember a time when real estate loans were high enough (e.g., 17 to 18 percent) such that the question was not so much about the price of the house; rather, it was did the seller have an assumable loan at a more reasonable rate?  It was about the “paper,” not the price or the property.  The idea is to have a piece of paper that was so attractive that every potential buyer would have lined up out the door to purchase real estate, and even if one buyer later defaulted subsequent purchasers would want to grab the “paper” that was associated with a given home (hence, keeping the home from falling into distress, despite the default).   

A simple loan program as I have sketched out above for real estate financing, had it been put in place early on, could have prevented altogether or at least significantly lessoned the impact of the foreclosure crisis and all that has followed with bail out after bail out, and government spending programs galore.  Stimulating entrepreneurs on main street, always a good idea even without a crisis, would have been another productive step. 

Several economists have told me that I’m pretty close in my guess that such a loan program could have been operated at “break-even,” had the government taken such steps (instead of helping AIG throw more parties and bailing out the likes of Chase with $25 billion in taxpayer’s money).  I hate to say it, but we’re not going to break even on the money we’ve sent to America’s corporate elite.  Same old story, especially in hard times: the rich buy out the poor and get more, while the poor give up what little they have.  As human history might suggest, eventually, in the face of serfdom uprisings start, tyrants are displaced (e.g., killed or banished), and the cycle repeats itself.

© Dr Robert Lahm for ChangeinTerms.com, 2009. | Permalink | 5 comments | Add to del.icio.us
Post tags: "Bail Out", credit

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In life, she helped people instead of harming them, and as compared to where I think the executives running Chase will end up (I picture an ending where the devil is a banker…and Chase executives are his customers), I’m confident that Toni is in a far better place.  I will miss her, as will thousands of others whom she has touched in her life and career as a teacher.  Although she and I have for the most part taught at different levels, she has been an inspiration.  

Looming on the horizon, I have been busy taking “two steps backward,” all because my house in TN has not sold.  It’s a long story to be made short:

Contract on home last summer fell through (end of July, 2008);

Thought/hoped a new one might arise by October;

Nevertheless, new job started in NC (5 days after contract fell through);

Leased a condo in NC (big enough to accommodate my family, given the “what if” scenario that it might be needed);

Brought half our stuff to NC, especially “conveniences” such as the kids’ beds and our washer and dryer; August: realtors leave lights on, doors unlocked, so we determine that wife and kids stay must close to home in TN, essentially “camping out” with kids on air mattresses, and not much other furniture;

From our perspective, a very dissatisfactory real estate agent relationship with the next agent “up to bat” (November, 2008 – January, 2009) begins and ends;

Wife had major surgery in February (6 to 8 week recovery – meanwhile, I am in NC and she is in TN – left primarily in the care of children, all still “camping out”; she could not drive or leave during the recovery, either);

Placed for sale sign direct from owner (after now having had 3 realtors) in yard as of Easter at a “rock bottom price” with no add-ons such as agent fees or buyer’s closing costs (please, no time for answering troubleshooting comments – not wanting to come across as a know-it-all, but we do understand staging, comparables, appraisals, condition, pricing – an extremely similar home two doors down built by same builder with the same materials and features, except we have numerous upgrades, is over $40k more and we are thousands of dollars under market with a home in immaculate condition);

Buyer’s agents now sell against us as they want their commission and have done a great job creating the myth that their services are free* to buyers;

Now anticipating another year like the past one, moving stuff back to TN (I am looking into other possibilities for my own accommodations, such as faculty housing – dorm-like);

We will put the house back together, as we can’t win a fixed race - signing with another realtor as soon as the house is put back together;

If I do not take steps to avoid “paying double” for housing next year as we have been doing, there will be trouble on the horizon;

Ever vigilant against the likes of credit card companies, I am a responsible borrower, and I will pay my bills regardless of the hardships (Obviously, if I am incapacitated or dead they would have to settle with my estate – but then, what would happen to their empire of economic slavery?   Best to keep us all alive with slow, non-lethal torture techniques.)

I thought that the above review deserved special mention of the fact that I purposely do not allow the spell-checker to capitalize the word “realtor” (especially when under our present scenario, most buyer’s agents we’ve encountered are so unethical they want to keep a discussion about their 3% commission hush-hush, and make sure that they corner my wife or me to ask if we’ll pay, out of ear-shot from their “client”; hint to “clients”: these unethical individuals are working for their 3% commission, not to protect your interests).

Secondly, since the above basically chronicles the past year of our family’s life, separated from one another by virtue of real estate hell, knowing my wife needed surgery – soon - even back in December, you might now have a better picture as to why I felt so cornered by Chase’s actions that I became aggressive with the ChangeInTerms.com site at that time.  Chase did steal Christmas.  But, in its almighty, high-flying, political palm-greasing, “wisdom,” it picked the wrong guy in the wrong place in life at the wrong time.  And, as it has turned out, my suffering and that of my family is nothing special – most American families, sans the intellectual, political, and economic elite, have been hurting as well.  But a “kick ‘em while they’re down” philosophy can sometimes backfire, Chase.

* Supposedly “free,” when in fact, sellers set prices high enough so as to be able to cover the total 6% commission (half for the seller’s agent and half for the buyer’s agent) - so actually, buyers do pay – duh!  Want “free” closing costs?  Where do you think sellers come up with this “free” money?  Duh!, again -  it’s built into the selling price of the house.  You’d think that people who have seen a “buy one get one free” grocery ad (in which the first item is usually twice the going rate) would understand that nothing is really “free.”  I predict that with little appreciation on the horizon (or continued falling prices) realtors and financing charges will be the biggest costs in many real estate transactions for a long time to come.  Oh, and by the way, don’t expect your local newspaper to run any exposé articles on the shenanigans of the real estate industry any time soon (realtors tend to spend a lot of money on newspaper advertising).  In good times and bad, realtors skim the cream off the top of any transaction - buyers and sellers may win or lose, but realtors own the game.

© Dr Robert Lahm for ChangeinTerms.com, 2009. | Permalink | 3 comments | Add to del.icio.us
Post tags: credit, fees, interest

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In January, Chase, with no opt-out allowed, raised my (along with 400,000 other customers) payment from 2% ($416/month) to 5% ($1,025/month)….and has demanded payments at the same high 5% level ever since. This month the payment was $842….still more than twice as much as the payment required in December.

Last Friday, I received my Chase statement on another account (4.99% promotional rate “fixed for the life of the loan”" with an outstanding balance of $6,029.28) with $0 minimum payment due. Along with a note that says:

“You have the flexibility to skip a payment. You must pay past due and overlimit balances immediately. However, the remaining minimum payment for this month has been reduced to $0. Finance charges will continue to accrue. To reduce your balance, feel free to make a payment.”

Of course, I have no past due or overlimit balances but what this very telling statement means is that Chase is inviting customers who do have past due and overlimit balances….to skip the regular minimum monthly payment!

So – Chase, a company which absolutely could not survive with a mere $25 BILLION in taxpayer bail-out funds; a company that had no choice but to put the screws to 400,000 of their very best customers to fill their cashless coffers; is now a company so flush with cash that they are allowing customers (at least one good customer [me ] and apparently some bad customers with past due and over limit amounts) to SKIP making their minimum monthly payments on accounts for which the payment requirement remains at 2%.

Then, presumably because Chase hopes I am feeling so good about not having to make a monthly payment this month, they offer this suggestion, “Save $100* r/t. Book a round-trip flight on British Airways worldwide…between March 23-Aug 31, 2009. Offer ends June 30, 2009.” *Terms and conditions apply.

Chase includes no mention of what the terms and conditions might be (though if they can entice me to charge my airfare on British Airways to this account, and pay for other travel expenses with it, the sky is the limit for interest on the new charges). But that’s OK. History with this company tells us that even when Chase provides specific enumeration of all their “terms and conditions”, the terms and conditions are subject to change – for any reason or for no reason. All part of the Chase adventure into The Twilight Zone!

© pdurant for ChangeinTerms.com, 2009. | Permalink | 5 comments | Add to del.icio.us
Post tags: "Bail Out", monthly minimum payment

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Thus, it was pure pleasure to read that Stephanie could not comment after a Federal Judge ruled against Chase today. The issue is not exactly on point with our issues but hey, any ruling against Chase is a step in the right direction. May the future hold many more headlines like the following….

JPMorgan loses court ruling over credit cards

Excerpt:

NEW YORK, May 19 (Reuters) – A federal appeals court reinstated a claim by a JPMorgan Chase & Co (JPM.N) credit card holder accusing the bank of failing to properly disclose risk factors that allow it to suddenly raise rates.

The U.S. Court of Appeals for the Ninth Circuit said the bank failed to make “clear and conspicuous disclosure” of the annual percentage rates it could impose, as required under the federal Truth in Lending Act, by burying the reason for an increase in the fine print of a cardholder agreement….

…He said this was “buried too deeply in the fine print” for a reasonable cardholder to realize the bank could raise the APR not just for events of default, but for “any reason at all.”….

…Chase spokeswoman Stephanie Jacobson said the New York-based bank does not comment on pending litigation.”…

May the lawsuits continue to multiply. May court rulings against Chase gain momentum. May Ms. Jacobson be unable to comment on many occasions as lawsuits against Chase wend their way through the court system.

I hope having to hold her tongue is driving Stephanie nuts. Being powerless to counter her many derogatory comments about me and my fellow account holders kind of drove me crazy. Ah….the sound of (Stephanie’s) silence. So sweet.

© pdurant for ChangeinTerms.com, 2009. | Permalink | 19 comments | Add to del.icio.us
Post tags: change in terms, credit, credit cards

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© pdurant for ChangeinTerms.com, 2009. | Permalink | 9 comments | Add to del.icio.us
Post tags: consumers, credit cards

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“The Board and the Reserve Banks share responsibility for supervising and regulating certain financial institutions and activities, for providing banking services to depository institutions and the federal government, and for ensuring that consumers receive adequate information and fair treatment in their business with the banking system.” (pg. 3)

Which “certain financial institutions” does the FED regulate?  Why it’s member banks.  That is, “national banks; by law, they are members of the Federal Reserve System.” (ibid, pg. 12).  Chase Bank, N.A., is a member, for instance.

Here’s where it gets interesting (and an inherent conflict of interest arises): ownership of stock.  How much stock, you ask?  “Member banks must subscribe to stock in their regional Federal Reserve Bank in an amount equal to 6 percent of their capital and surplus, half of which must be paid in while the other half is subject to call by the Board of Governors.” (ibid).

Putting it altogether, the FED is charged with “ensuring that consumers receive adequate information and fair treatment” from Chase (along with other member banks), which as one of the largest banks, is a major stockholder in the organization that regulates Chase.  Sweet, isn’t it?  Now do you see the conflict of interest?  No wonder Chase had its wishes for 18 months granted.  Big “compromise,” wasn’t it, that under the new FED Regulation Z rules, that banks will have to give 45 days notice before imposing changes?

In a statement before the U.S. House of Representatives in January 2009, Representative Dennis Kucinich criticized the FED system stating:

“The banks have shown that they can’t be trusted with the American economy.  That’s generally been the case, but now it’s out in the open 350 billion dollars later.  In 1913, the money power of the country was taken away from the people — by constitutional privilege it belongs with the Congress — but it was given up, in a Federal Reserve Act.  The Federal Reserve is no more ‘Federal’ than Federal Express!  But, yet it has the power to determine the direction of use of money in our economy.  If we could take that power back and put the Federal Reserve under Treasury, we start to be in a position, of being able to control monetary policy on behalf of the United States’ people.”

© Dr Robert Lahm for ChangeinTerms.com, 2009. | Permalink | 4 comments | Add to del.icio.us
Post tags: banks, consumers, economy, interest, regulation

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