There’s been a lot of stink made recently about Chase’s decision to up minimum payments from 2% to 5%. The question is though, is it really a bad thing?
Many people who have gotten the notice from Chase that their minimum payments would increase to 5% aren’t in a position to pay the increased payment. They have turned to the internet to lodge their complaints.
The issue at hand is that it appears as if Chase is forcing cardholders with low interest rates to make higher payments, or if they so choose, to negotiate a higher interest rate in exchange for a lower minimum payment. This isn’t really ethical, but Chase is fully within their rights to do so.
It is my opinion that the 5% minimum payment is actually better for those with credit card balances in the long run. Sure it stings now, but when you’ve paid off that credit card 48 months earlier than at 2%, you’ll be happy. I’m not the only one who thinks this way.
What can you do about it?
If you happen to get the notice from Chase informing you of the minimum payment hike, then you can either pay the increased minimum payment or try to negotiate a lower minimum payment.
If you try to negotiate a lower minimum payment, Chase will try to increase your interest rate. Maybe you won’t get them back to 2%, but you may be able to knock it down a little without a higher interest rate.
To try to negotiate, you should call the Chase Hardship Department. As of this writing the number for that department is 866–351-0182. Be prepared for lengthy hold times.
My recommendation
If it were me, I would try to find the extra money in our budget to make the increased payment. Are you currently snowballing your debt elimination? Can you just move your snowball payment to the Chase card?
Even though the move by Chase is sketchy at best, just remember that this is just one more reason to get out of debt for good.
{ 2 comments… read them below or add one }
I would hope that if I present evidence you had not considered, you might change your mind.
It is my opinion that Chase Bank should have offered an OPT OUT option to all of these never been late with their payments customers who are being hammered by the 2% tp 5% increase in the monthly minimum payment.
Less than one percent of the time Banks not offer OPT OUT options to their customers when the bank changes terms.
A debtor can pay down their debts faster by paying down higher interest rate cards faster than lower interest rate cards. So Jamie Dimon is INCORRECT when he says he is helping his customers pay down their debts.
Jamie Dimon is actually costing 2 million Chase Bank customers who will be affected by this 2% to 5% raise in the monthly minimum payment anywhere from 100 million to a billion dollars a months in lost money because they now have to put most of their money towards paying off low interest rate credit cards while only paying the minimum on higher interest rate credit cards.
Thanks for your time.
http://www.bloggersagainstchasebank.com http://www.daily-protest.com
Credit card companies always offer an opt-out. Every time they change your credit card terms, you can opt-out of the changes within 30 days. This usually means closing the account as well, but it allows you to keep your current repayment terms. I’m not sure if they have to explicitly inform you of this right with every change — which they should have too — but it’s there.