Somewhat off-topic -- ever since the WSJ was bought by Rupert Murdoch I have ignored it as a news reporting agency. I caution against assuming their reporting of details is accurate or informed.

You should add to your E-mail to them that the newly added "Finance Charge" of $10.00 a month puts you over the agreed to APR on the original balance transfer for life offer (if you had such an offer). Again, offer to continue paying at the agreed to rate, and if they wish to list the account as closed so that you can't use the card, offer them that as well.

Thanks David. I will still send an email this week, but...:

I just spoke with a different CSR than yesterday. I expressly stated there has been a change in my finance charges by their adding the $10/month assessment. She stopped me dead in my tracks and said the $10/month is a service charge, not a finance charge. I flung right back at her that I have, in writing, the notice which states in two separate places the $10/month is a finance charge. Her response? Get this: "The notice had an error in it. It's not a finance charge, but a service charge, so there's no real change to your terms." I said: Error or not, I have to go by what I've rec'd from them in writing and it says finance charge. I think (I hope) they screwed up with that notice and they're hoping people will be scared enough to passively accept what Chase is saying verbally over the phone about the error.

QUESTION: Do I have a stronger leg to stand on because the written notice states that the $10/mo is a finance charge and the CSR said the written notice was incorrect in its wording?

I asked about my right to opt-out and continue paying at my current terms until my card expires. She pulled up my contract/terms and told me that it states that they may offer an alternative to the change in terms, which they have (reverting to 7.99%, paying 2%, no monthly finance charge assessment). According the my terms, she said, they only have to offer an alternative, they do not have to offer an opt-out option. She'll be mailing me the contract/terms.
Seh said she'll have her manager call me. We'll see. I don't think it will change anything.

But if the $10 a month is listed under your purchases balance and not under your finance charges balance on your statement, then it is NOT a finance charge. Again, the language is tricky. Charges for your account are included in the Finance Charges section of your user agreement. But the $10/month is being added to your purchases balance. It is not part of the finance charges balance, which is computed on a daily basis and determines the APR appearing as a finance charge on the statement. It's a membership fee for the card.

Apparently, it is going to be charged monthly regardless of whether or not you're carrying a balance on that card. So how could it be considered tied to your LOB loan? If I'm reading it right, you can pay off the loan in full at once and you'll still have to pay a $10 monthly fee to keep the card.

CreditGuy said:But if the $10 a month is listed under your purchases balance and not under your finance charges balance on your statement, then it is NOT a finance charge. Again, the language is tricky. Charges for your account are included in the Finance Charges section of your user agreement. But the $10/month is being added to your purchases balance. It is not part of the finance charges balance, which is computed on a daily basis and determines the APR appearing as a finance charge on the statement. It's a membership fee for the card.

Apparently, it is going to be charged monthly regardless of whether or not you're carrying a balance on that card. So how could it be considered tied to your LOB loan? If I'm reading it right, you can pay off the loan in full at once and you'll still have to pay a $10 monthly fee to keep the card.

Yes, your are right. If I do pay my balance off, I will still be charged the $10/month. This I was told today.
And you have a point about the $10 being added to the Purchases balance. Then it is more like a service charge (which is what the CSR kept calling it). So, that means that I would be paying 7.99% APR on an ever-growing $10+$10+$10+....
They sure are slick....

Jane0218 said:DavidScubadiver said:The case is not stronger or weaker based upon what a CSR says. What really governs is the contract terms. Its a good sign that they seem to be trained to say its not a finance charge, because it seems like they are attuned to the problem. I don't see how they increase the finance charge retroactively and frankly, even if this is impacting only 1/2 of 1% as Chase says, they are going to have to bend. Keep the pressure on. Keep them writing to you. If you keep insisting they quote the chapter and verse of the agreement that gives them the right to do what they are doing, they may fold and simply let you continue on your merry way with a closed account on the old terms.
Sounds good, and I will do so. I guess I have to wait for my contract terms first, though (10-14 'business' days. Then I'll send them, via email on their website (this is acceptable, I think) a strong email to see if I can get them to fold. I won't be too confrontational, but I have to be somewhat aggressive or they'll think I'm not serious.

Thank you very much for all the assistance. I feel I know what I'm talking about now because I've had someone(s) to bounce this off of.Jane, if you want to give your situation the attention it deserves, stop speaking with CSrs on the phone, stop with the emails. Stop waiting for a manager to call you back with more BS. WRITE a letter and MAIL it to the CEO/President of Chase. One of the executive assistants will respond.

DaveHanson said:PolarDude said:Interesting timing.. I noticed one of my payments dropped huge when I charged a small purchase to a 0% BT card, in which the purchased incurred interest at the standard rate, the payment dropped to "1% plus finance charges" instead of the old 3%. Nice loophole for those who are scared of the 5%, 4% and 3.5% I've been hearing about.
PD, was this a chase card that switched from 3% to 1% + charges?

All my Chase cards have always been 2%, no more no less.

Would love to see confirmation that Chase will alter its minimums based on purchases made.

This was a GE Money card, not Chase.. I did notice GE mentioned something about lowering minimum payments as well on my statement.
I do know some banks vary the way the min. payment is calculated. Some chase cards have 0% on BT and Purchases, so this might not work on those that way, but a cash advance may work, but you should read the terms on the min. payments to see if this would affect it. A cash advance would also be a hefty rate, and may redflag you. It seems chase may be specifically targeting life of balance users, so they may still get you with a change in terms.

rooms222 said:Creditboards has been discussing this for a few days. They are NOT letting people opt-out and keep their rate (they were letting some people that called in get 7.99% with no fee and no minimum payment increase). Some people have been sending their own opt-out notices in by certified mail to attempt to preserve their rights. This may end up in a class action suit. HSBC has traditionally been the largest issuer I know that has refused opting-out for contract changes......BOA Citi, and Chase have bee good about letting you opt out.. (if you get the notice in time and actually read it).....

Darth Vader would love these guys: "I have altered the deal. Pray I do not alter it any further."

LisaDR said:I contacted the OCC today. They seemed to think that Chase was within their rights. I will not be paying after January if they do not agree to the original terms.
I also contracted this group about a class action.
http://www.tlpj.org/

And I found a thread about this on topix.com

Thanks, Lisa, for the info. I contacted the OCC via email and am waiting for a response, but it will probably be the same you received.

Jane0218 said:LisaDR said:I contacted the OCC today. They seemed to think that Chase was within their rights. I will not be paying after January if they do not agree to the original terms.
I also contracted this group about a class action.
http://www.tlpj.org/

And I found a thread about this on topix.com

Thanks, Lisa, for the info. I contacted the OCC via email and am waiting for a response, but it will probably be the same you received.

Jane, when you get your reply, can you post it here? I would like to see what the OCC's take is on this. I can't imagine how not letting people opt out to this change in terms can be permissible.

LisaDR said:I contacted the OCC today. They seemed to think that Chase was within their rights. I will not be paying after January if they do not agree to the original terms.
I also contracted this group about a class action.
http://www.tlpj.org/

And I found a thread about this on topix.com
This is not surprising. The OCC is headed by John C. Dugan ("Attaboy Dugie!"), who didn't realize until 2005 that the proliferation of ARMs could be a problem if rates rose and people couldn't afford their payments. My guess is in about 3 years the OCC will ackowledge that Chase's move is illegal.

Fortunately for me, an earlier screw up ended up helping me out. I have a LOB rate of 3.99 with Chase. But when I transferred my balance, I forgot to delete the card from my eBay account. The next time I sold something on eBay, the commission was charged to the card. I now have a small purchase balance which so far has protected me from this disgrace.