A reader, Susan, had this question:

I received notification that one of 3 of my chase credit cards would have a rate increase. I called to cancel the account, opt out of increase and check on the status of other two accounts.

Cust. Serv. Rep stated all accounts were increasing and one already had or was to late to opt out. Of course, my husband is primary on this account so I was unable to address the issue. The other two accounts I immediately canceled.

NOTE: I do have financial power of atty but chose to wait for my husband rather than deal with faxing to multiple departments and extending the runaround.

When I recalled Chase on Sunday, February 22, 2009 I was transferred to what I now know to be an APR Advisor who my husband and I both spoke to. This advisor’s advice was to NOT cancel our credit card because the interest rate was staying at 7.99% and no notifications had been sent to us stating otherwise.

I asked this advisor why I was transferred to him for this credit card and not the other two? His answer in sub and substance was to advise me not to cancel this credit card because the 7.99% was a good interest rate.

Needless to say, we didn’t cancel the credit card at that time. Now I get the bill and the rate has increased to 10.24% variable.

My husband is serving in Afghanistan and my long winded question is: Did they (Chase and/or the APR Advisor) commit a crime or fraud or anything I could/should seek justice for?

I am outraged and tired of being trodden on. I was a police officer for several years and would jump through hoops to find justice for others when applicable and “we” all know that doesn’t happen very often.

Also, this leads me to another aspect of this problem and a two secondary questions. #1. The little tri-fold rate increase notification can easily be treated as junk mail or completely overlooked, my one notification for example was inside of a Yankee Trader magazine where I often find other mail that shouldn’t be there.

I find this inappropriate and definitely not adequate notification of change to a legal contract. Is it?

#2. What about other spouses of deployed troops receiving, potentially overlooking and/or not dealing with in the allotted time given and, if they do deal and are not the primary cardholder why should they have to suffer through the same red tape I am being forced to.

NOTE: I know I am not an isolated incident as I shared my outrage with my neighbor last month and she has since received the same notification on all of her chase accounts also. None of my accounts were ever in arrears and have no late payments….. We are the people who pay.

Thank you for taking the time to read this. I apologize for being long winded and anxiously await your response.

Respectfully,

Susan Simon

Thank you for your questions Susan.

The “advisor” that you spoke with was someone in the retention department of Chase. That person’s only job is to keep you from canceling your accounts.

The fact that you spoke with them at all indicates that you were concerned enough to pursue the matter and the general customer service rep transferred you.

If you do want to work things out and keep your chase account, you are going to have to speak with someone in that department again.

Now apparently, they lied about your rate increase to get you to keep your card open. if I were in your shoes that would tick me off too. I also wonder, how can it be too late to opt out of a rate increase when you were not notified the first time?

So? Did Chase commit a crime? Probably not. The answer would be found in the fine print that shows up in those tiny tri-fold brochures. Unfortunately, it usually states that Chase can alter the terms and conditions of your account at any time, with or without notice.

Go back over your current cardholder agreement carefully. If you can’t find a hard copy, then you can go online to Chase’s website and get a copy of the most recent terms and conditions.

By the way – when you use the card you are automatically accepting their terms and conditions, even if they don’t notify you.

That’s not ALL cards, but it’s most of them, so check your ifne print carefully. It’s the only way you will know whether or not you have a legal recourse.

Once you check out your fine print, if you do believe that they have violated their own terms and conditions, then yes, you can absolutely seek out a lawyer and see if they will take your case.

Most likely these types of cases are handled as part of a class action lawsuit. There has been a lot of hinting at class action lawsuits, and some of them have even been filed.

Here are a few of the current cases you could join:

• Class Action Lawsuit Filed on Chase Bank Credit Cards – at Stoll Berne Law Offices. This particular lawsuit is being filed because Chase promised consumers a fixed interest rate for the life of their loans (mostly on balance transfers.)
• Girard Gibbs Files Class Action Lawsuit on Behalf of Chase Cardholders - This one happened because Chase doubled the minimum monthly payments and added a ten dollar monthly fee to some of their cards.
• Green Welling Files Class Action Lawsuits on Chase Bank Credit Cards - Yet another two class action suits because of interest rates and minimum payments.

While there isn’t a class action lawsuit going on right now that really fit your situation, the answer is yes, you do probably have some sort of legal recourse, you would just need to speak with a very good attorney and set it up as a class action lawsuit.

Is The Tri-Fold account notice really “enough” notice?

Well, I think that’s a two-fold problem. No one reads their terms and conditions, and the credit card companies don’t want you to read them. So, they put them into inserts with tiny print that give you a headache and maybe even mild panic attacks when you open one up.

It’s a see no evil, hear no evil problem. In my opinion no, it’s not enough notice, but by law, it usually is considered sufficient warning. That’s another question to speak with a lawyer about. A good lawyer can fight the language in the terms and conditions as much as anything else, and could probably get good results for you.

Military Credit Help?

Yes! As long as your husband is on active duty, you may have some legal benefits that could help you get everything straightened out:

H&R Block had this information on their web site:

The Servicemembers Civil Relief Act of 2003 (SCRA) is a federal law that gives all military members some important rights and many protections as they enter or while on active duty.

…

Reduced interest rates and loan payments: Under certain circumstances, lenders must lower interest rates to 6% on your pre-existing home mortgages, credit cards, car loans and other personal loans. Any interest you owe above 6% during your period of active duty will be forgiven, not just deferred.

…

To claim the SCRA benefits, you request them from your lenders and provide proof of your active status. For example, to obtain a reduction of your pre-active duty mortgage or credit card interest rates, send your lender/creditor a written request and a copy of your mobilization orders. If you encounter any problems, contact your military legal assistance officer.

Credit Cards.com went into a little more detail than that:

JPMorgan Chase extends the 6 percent cap to a service member’s entire credit card balance, including purchases made while on active duty, and does not enforce its usual minimum payment requirement.

If servicemen and servicewomen “are current in their payments when they enter active duty, they can make no payments while deployed, and when they return, their account is reported as current,” says Chase spokeswoman Elaine Franck.

The even better news is that Citi offers 0% APR to service members on all of their pre-service debt. It might be worth checking on a balance transfer!

Thank you for your question Susan.

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