How is your family budget?

This morning I had an opportunity to talk with a representative of Chase Credit Card Services in Springfield, Missouri. I had been directed to a supervisor because of an inquiry about the sudden increase in the minimum payment on my Chase Credit Card. I also had questions about a $10 service fee which I had noted when reviewing my monthly billing statement. The $10 charge had never appeared before.

Their representative was pleasant but firm and told me that Chase Credit Card Services had sent out a letter last fall outlining changes where the minimum payment on Chase Cards would be increased from 2% to 5% of the outstanding balance. I noted that I did recall receiving such a letter. But had called and was told the letter related to different accounts then mine. It was further explained that the changes were necessary because of the national credit crisis occurring. Their representative never explained the $10 service fee. I asked for a copy of that letter and it was agreed they would faxed it. But it was unclear when it would be faxed. Later I received a call saying it would be mailed instead.

While it is unclear if these changes affect every Chase Credit card holder, my account was created when I took advantage of a low fixed rate of 4.99% guaranteed for the life of the loan. Chase’s representative quickly pointed out that while the rate was guaranteed, the amount of the minimum payment was not. However, the random $10 service fee was not noted. It increased my otherwise guaranteed 4.99% rate to 8.04%. But, as he said, the changes were necessary because of the national credit crisis.

The question raised here is, can a family withstand an increase greater than twice, two percent-to-five percent, of any single line item within their monthly budget? Another question is, whose crisis is Chase Credit Card Services really concerned? Is it a crisis that Chase Credit Card Services guaranteed a low fixed rate for the life of a loan? Or maybe they want their low fixed rate obligations to go away? Chase’s representative said the explanatory letter sent to me had indicated I could opt out of the minimum monthly payment increase. But, if I did, I would have to agree to an increased rate of something over seven percent. Hasn’t that already happened? For lack of a better term, isn’t this legalized extortion?

But, once again, what about that family whose budget is already stretched to the limit. Whose family is facing reduced earnings? Whose job may be in jeopardy? What happens if they are late or miss a payment? It would seem that that’s the catch Chase Credit Card Services is looking for. You see, if a payment is late or missed entirely, it is a guarantee the interest rate gets bumped to the highest allowable rate Chase Credit Card Services can charge.

Either way, Chase Credit Card Services avoids the national crisis and legal extortion becomes the norm.

For additional complaints lodged against Chase Credit Card Services, please check out the website at: http://www.consumeraffairs.com/credit_cards/chase_credit_cards.html.