Beware of Chase Credit Cards: Say No to Chase Offers!

Do you have a Chase credit card or are you thinking about applying for one? If so, you might want to reconsider using it or getting one. Unfortunately, Chase has not been fair with its credit card users.

Back in the mid-2000s, Chase offered me a 2.99% life of the loan interest rate as long as I never made a late payment. At the time, this was a significantly better interest rate than you could get on personal loans from the local banks. Consequently, I jumped on this fantastic deal as many others did too. However, the old cliche, "When something is too good to be true, it probably is," was true with Chase.

Back in the summer of 2009, I received a notice from them that the minimum monthly payment was going to rise from $300.00+ to $1000.00+. Since Chase couldn't legally change the terms of their interest rates unless the customer made a late payment, they were able to legally change the minimum payment. Even though many consumers had faithfully followed the terms of their credit card agreement and were struggling with one of the worst times in economic history since the Great Depression, Chase didn't care. Normally, when credit card companies change the terms on a credit card, they allow you to opt-out. To opt-out, you have to call them, close the account, and not use the card again. However, Chase didn't give anyone this option. Furthermore, they were only giving a thirty day notice before the terms changed, and when you called up customer service for help, they weren't willing to do anything. Consequently, if you defaulted on the high minimum payment, they would then be able to jack up your interest rate to almost 30%. How are you suppose to ever get out of debt with terms like those? I'm quite sure that many customer's excellent credit rating was ruined from their lack of ability to meet their payments and had to file bankruptcy.

In response to many disgruntled Chase credit card customers, a class action lawsuit was filed against them by Girard Gibbs LLP and co-counsel in the District Court of Northern California in July of 2009. The lawsuit alleges that Chase changed the minimum payment terms from 2% to 5% of the unpaid balance. After months of briefing and arguments, in May 2011, the court granted the motion for class certification. Simply put, this means the lawsuit can continue as a class action lawsuit. Unfortunately, even if the case is won, it is the lawyers rather than the wronged customers that make all the money.

The other day when I recieved my credit card statement, I noticed they were trying to lure Chase credit card customers with 2.99% offers again. Since I was burned once by them, I didn't pay any attention to it and promptly threw the offer in the trash. However, afterwards, I got to thinking about how many unsuspecting credit card consumers are they going to try to rake over the coals again. Although this time I believe the terms are for a limited time, who knows what loophole they will try to find the next time they want to call back their credit card loans. The bottom line is that if you don't have a Chase credit card already, don't get one, and if you do, don't sign up for more of their 2.99% offers.