Chase not backing down from APR increase to 19.99%(from 13.99%) despite no late payments & good credit?

Question

I've had a Chase platinum card for 18 months. My credit was good when I first applied for the card, and this has not changed in the time I've had the card. I had it run with all three agencies in Nov of last year and the lowest score was around 730

I have never had a late payment on this card, as confirmed by the card issuer's own customer service dept. I also don't have any late payments on any other debts.

The first 12 months I had the card, it carried an intro APR of 0%. When that ended, Chase tried to increase the APR to 19.99%. I call and advised I didn't find that acceptable given that I had solid credit and indicated it would be my intention to transfer the balance to another card and cancel my account with them. I was transfered to an account manager who agreed to amend the APR to 12.99%. This was acceptable to me, so I continued to keep & use the card.

Things seemed to be going well on the account, as I receive a credit increase from $4,200 to $7,300 just before the holidays.

Six months pass and my APR is suddently back up to 19.99%. I call and ask why and they advise the revised APR was just a special offer and it has expired. I wasn't that annoyed by this, as it kind of makes sense for them to try and sneak the higher APR in, but I figured they would still back off if again faced with the risk of losing a customer with a clean account.

I again go through the process of getting in touch with an account manager and letting her know that I don't find the APR equitable given my account history & credit. I let her know I will be transfering my balance to another card & closing this account if we can't come to an agreement on a revised APR.

That's when things started to surprise me. She tells me that she can't do anything for me, but not before putting me on hold and checking my account first. This says to me that there would be categories of customer she would offer a reduced apr to, but I'm apparently not among them despite good account standing.

I reiterate that I have no interest in maintaining or using a credit card with a 20% interest rate and stress that I will make it my number one priority to remove the balance of the card & cancel the account.

Not only does she not back down on the APR, she offers to help me avoid actually paying any of the increased APR by waiving the 1st minimum payment due under the revised APR on the account, so that I will have enough time to transfer the balance without having a payment due. So, she's essentailly making it EASIER for me to transfer the balance and take my business away from them.

This absolutely blows me away, as it has always been said that retaining a credit card holder is cheaper than acquire a new one, so credit card companies usually have a very strong incentive to keep existing customers and make minor concessions to do so. This doesn't seem to be the case anymore with my Chase card. They would sooner have me walk than reduce their interest rate.


With all the above having taken place, I'm basically left with two questions for anyone more experience with credit card companies than myself.

1) Is it worth trying again to see if a different account manager will feel differently, or is so much of their decision making computerized that a different outcome is virtually impossible?

2) Am I out of touch in my thinking that a 19.99% apr is higher than someone with solid credit & no late payments should be paying on a run of the mill credit card with no special rewards or incetives features? I know that interest rates have been on the rise since some of the traditional sources of income for credit issuers have dried up.

Answer 1

That is pretty steep i have credit cards and well i talked capital one down from 18.99 to 13 as you did and i agree it is steep you should try and call back but if they do not budge on it then just transfer it they will not back down so see ya later,good luck.

Answer 2

A collection agency can and should work with you on your current financial status.. It's in the best interest of their client and to resolve the account..



I would call them up and explain your situation and tell them you are willing to do a in-house supplemental at their office in order to figure out a payment plan that is suitable for the short term until you get your hours back.. But be prepared because they will want to see all your expenses and proof your hours are cut..



Collection agencies main objective is to get payment in full as soon as possible,, however a smart agency will work with you the best they can to keep the payments coming in...



They could file suit against you and then garnish your wages,,however from the time they file suit and garnish it would be at least 2-3 months or longer before they even see a dime from your check... I'm hoping in this economy they will work with you on payments and not push you into a bankruptcy..

Answer 3

IF you were handling your financial affairs appropriately it would not matter if it were 50% interest rates and now do you HONESTLY in your heart of hearts think they give a rats patoot if you go elsewhere? I hate to tell you but you are merely a spot of fly poop in the whole of things.



You can always try again but why not try NEVER carrying a balance as doing so means you are living beyond your means, and paying in full every single cycle period then who cares what the rates are.



Yes that is high but getting more typical everyday.