Subject:
Chase Bank Increasing Credit Card Interest Rate 75%
To:
Rep. Dan Burton
October 24, 2009
I have to make a complaint and I doubt that anyone will listen or respond, but I have to tell everyone I can. I was just reading a change in terms notice that I received from Chase about my credit card. In an effort to keep their profits boosted, they are increasing interest rates. They are not just increasing them a little, I am getting hammered.
My effective rate will increase to 21.24%, it is currently 12.24%. That is a 75% increase. I have always been in good standing with Chase. At those rates, people will never get out of debt, it will be next to impossible. Yes, I could just cancel my account and keep the current rate, but here is the cruel twist that the credit industry puts into play in that case. When they look at your credit for a loan, if you haven't had a credit card on record for a long time, they hold it against you. It doesn't matter that you have a credit history that is 20+ years long.
I believe that this policy has been put into effect to keep people from canceling cards and moving on. With the credit industry holding back on giving people credit, it is very difficult to find a company that will give a lower rate and change to them.
I appreciate the governments effort to try to rein in the financial industry, but when you tell them they have months to prepare for changes, they just put millions into finding ways to maintain their profits and ultimately your new policies end up hurting those of us who you were trying to protect.
Essentially what is happening to me is that I will effectively be deeper in debt due to this increase in interest rates. I don't know the math, but how many years will a 75% increase in my rate add to paying off the debt? You do the math. All I know is that I am a pawn at the mercy of the financial industry in this big game of greed and the rich just keep getting richer.
Fishers , IN
|
