Chase Credit Card

Chase Credit Card

Complaints,

I am writing this complaint regarding my Southwest Chase (formerly BankOne) Credit Card. Chase bought out BankOne (or, at least, this credit card branch of BankOne)several months ago. When I opened the account it was with BankOne. In fact, I received notification of this change of ownership a couple of months ago when the change occurred.

Last week I received a notice from Chase saying my APR would rise from 13.99% to 23.99% plus prime. I have until June 1, 2005 to pay off the existing balance on my credit card before the new rate takes effect.

The funny thing is, Chase bought out BankOne several months ago. Yet, at that time, I did not receive any notice of an APR change. Additonally, at that time I had a "zero" balance on my card. Only after using the card in the past month did I receive the notice of an APR change to my account. And, again, we are not talking about a minor APR change, but a 10% change!

On top of that, the Southwest card has an annual fee of $39. At the time of the ownership turnover my membership fee was not due for a couple of months (not due until February).

Thus, Chase did not notify me of an APR rate change when they bought BankOne. Instead they waited until I had paid the annual fee and until I had a balance to notify me of the change. Thus, I would be stuck with the balance and new APR, unless I could quickly pay it off before the new rate takes effect on June 1, 2005. This is shaddy enough, but it gets better.

I have no bad credit history, and no late payments on my credit cards. I am on time and maintain a low balance. Yet, when I called to complain they said their decision was based on my credit report and history. This is smoke and mirrors... because it is simply not true. Especially given that, only months prior to the turnover, I got my APR lowered when the card was still with BankOne from 17.99% to 13.99%.

Lastly, I have conspicuously been getting unrelated credit card offers from Chase lately for a low APR of 7.99% and 0% APR on transfers!

Thus, what is happening is clear. Chase is trying to squeeze me out of my Southwest Card by upping the APR, all the while lying to me about why they are doing it. And, in the meantime, they are trying to come in the back door and get me to open one of their card accounts to improve their corporate financial statement.

This is completely unethical. And, I would deduce possible an illegal squeeze, especially considering their untruthfulness in dealing with me over the phone.

Consider this: Had I known they were going to up my rate from 13.99% to 23.99% when I had a zero balance and before I paid the annual fee I would have simply closed the account. But, they waited until I paid my yearly fee and used the card again to lock me into paying them either (a) under the new exorbinant APR, if I failed to notice the change or (b) by opening a new and separate credit card account under the convenient and conspicuously sent Chase offer and then transfer the existing balance.

One real problem with this is they did not tell me what they were up to. They leave it to the consumer to connect the dots to see what is really going on. It is a terrible scam, b/c the average person will not connect the dots. The average person will either (a) unknowingly get stuck with a high APR or (b) put a ding in their credit by opening a new account with Chase. In either case, people will not even know what happened to them... And, in either case, Chase wins. It wins with the people who don't realize there has been a change, and the win with those who do and then take the bait and swithc over to Chase's other credit card.

Chase is acting as a puppeteer and its consumers the puppets.

I hope I have been clear in telling you about what they are doing b/c it is shady!

I am a 2nd year law student at UC Berkeley, Boalt Hall and would be willing to talk anyone over this issue. Consumers need to be aware of this corporate scam.

Sincerely,

Zachary Click this link to e-mail the message author: //

Comment On This

Thanks for your comment. I'm falling into the sane situation. i have had a southwest credit card for a year. I have never been late and all of a sudden i have an increase from 13.99 to 29.99% with no explanation other than my balance is high. My limit is $4k and I only owe half that amount. Asided from that i was late by one day and they did reverse the charge but only after calling about 15 times and complaining. CHASE is not consumer friendly and have raised my minimum payment by 65%. I' a father of three and have very good credit. I think they are preying on people with families and getting rich with their deceptive terchniques. Please help!