Consumer Warning!

Hey Gang,

I just went through something that I wanted to warn everyone about in the hopes that it might prevent someone else from going through this same type of situation.

For literally years I have had a Chase Bank Mastercard. My interest rate was 6.9%, not the best but certainly good enough to stick with it. I ALWAYS paid on time with additional monies added to whatever my minimum was, and had actually received several credit increases over the years. My relationship with this credit card company was a positive one; that is until this morning.

I was paying my account online when I noted that my interest rate had changed. Not a little; to 29.96%! I was shocked to say the least. I immediately thought of the potential fraud. What in the world could have happened?

And so I called them.

They raised my rate because "I had left my balance too high for too long (wasn't ever over the limit and even though it was quite a sum it wasn't that much really) and under their terms they saw me as a credit risk." I could "check back in 6 months to see if I might qualify for a lower rate".

When I called a supervisor I was told that they "were allowed to do this under the terms of my agreement with them and that there was nothing that could be done.

So....

Turns out they are in Delaware, a state where lots of consumer credit card companies locate themselves because this is one state where it would not violate the usuary laws to raise the rates so much.

DO NOT BANK WITH CREDIT CARD COMPANIES IN DELAWARE!

And, because I received all of my statements online, I did not even know until I logged in that they had changed my account APR.

DO NOT ALLOW CREDIT CARD COMPANIES TO NOT SEND YOUR STATEMENTS IN THE MAIL!

And so I quickly made arrangements to payoff the card and close the account. I just completed this little act. (Was simple to get a new card with lower interest, none of which will accrue for 6 months, with a fixed lower rate at the end of the first 6 months)

DO NOT BANK WITH CHASE BANK! THEY DID THIS TO MY SISTER-IN-LAW TOO AS IT TURNS OUT AND THEY MIGHT DO IT TO YOU! OR BETTER YET, DON'T CARRY A BALANCE!

In the end I am going to seek legal council in order to find out if I might be able to recover any of the monies they charged me since last month that I did not know about because I never received any notice. I am not holding my breathe on that one by the way. But I can tell you all about my experience in the hopes that you won't fall victim also.

I did nothing wrong here. I paid my statements on time every time. And they took advantage of the fact that I was an online customer not as likely to see this rate increase and in addition that I had a balance upon which they could raise the interest rate to an incredible amount in order to increase their profits. Nearly 30% would be illegal here in Florida and yet in Delaware it is perfectly Ok.

Well you know what....it's NOT ok! There are people out there who don't have the means to do what I was able to do in order to rid myself of these bank. It is for those who I am going to devote a little time in order to bring this fight to the public eye. I intend on writing the Florida Consumer Protection Bureau and the Federal Consumer Protection Agency. If anyone knows other agencies that I might involve in order to make Chase regret what they have done to consumers (and are no doubt doing right now), please post it here.

There is right and then there is wrong; there is no gray areas. What they did and how they did it was wrong. And I am not going to allow them to get away with it if I can help it. I am no longer going to be a customer of Chase and I urge anyone who banks with them to end their relationship as soon as possible unless they are on a guaranteed fixed rate. (doubtful with this credit company)

Ok, I will step off of the soapbox now. Here's hoping I might be able to take on this giant and somehow stop what they are doing to American consumers. As I said, any ideas in how I might best take this fight on will be greatly appreciated.