Chase Credit Card

b4freedom · #1 (**permalink**) 11-27-2006, 07:28 AM

I have a Chase credit card that I use exclusively for business trips. I just got a change of terms notice in the mail. It was 4 pages long and I decided I should probably read it. Apparently, they are getting ride of my 20 day “grace period”. Interest will be accrued from the date of purchase. And, it goes into effect Dec. 1st. Does that mean any balance on the card as of Dec 1st will start being charged interest? I just made a very large purchase for work. I’ll pay it off this week to be on the safe side (It takes two weeks to get reimbursed from work). How many people get burned because they never read the fine little print in a notice? It’s an underhanded trick. Chase sucks.

MonkeyMama · #2 (**permalink**) 11-27-2006, 08:06 AM

If there is no grace period I imagine that is what it means.

Bummer. If credit cards start dropping grace periods, I Am dropping credit cards. Is their only appeal to me- grace periods and rewards...

Though I bet if you called and said you were cancelling because of that, they would reinstate it. Or if you asked them too. Then again how long until they try to sneak it by you again??? Doesn't surprise me.

Aleta · #3 (**permalink**) 11-27-2006, 08:54 AM

I hope that you are wrong because I have a Chase Card as well. I also will drop them although I have been with them for along time. I will call them today. They will cut their own necks off.

omicron · #4 (**permalink**) 11-27-2006, 10:21 PM

I hope that is not true. I have several Chase cards. The notice came in separate letter or with your statement?? I did get a letter from Chase a while back saying the default rate was 32.24% or something.

Bookie · #5 (**permalink**) 11-28-2006, 05:41 AM

The Change in Terms notice was included in the November statement:

Quote:

GRACE PERIOD. The "Grace Period," or "Grace Period and Accrual of Financial Charges" section of your Agreement is amended to replace the sentence that describes when periodic finance charges begin to accrue on transactions, fees and other finances charges. The revised sentences is as follows.

We accrue periodic finance charges on a transaction, fee or finance charge from the date it is added to your daily balance until payment in full is received on your account.

poundwise · #6 (**permalink**) 11-28-2006, 07:30 AM

Wow.

b4freedom · #7 (**permalink**) 11-28-2006, 11:07 AM

Quote:

Originally Posted by Aleta

I hope that you are wrong because I have a Chase Card as well. I also will drop them although I have been with them for along time. I will call them today. They will cut their own necks off.

Did you call? What did they say?

b4freedom · #8 (**permalink**) 11-28-2006, 11:09 AM

Quote:

We accrue periodic finance charges on a transaction, fee or finance charge from the date it is added to your daily balance until payment in full is received on your account.

As far as I can tell, that means there is no grace period; unless I'm informed otherwise. Sneaky bastards and going to catch a lot of people of guard. Maybe that's why they increased the default rate.

Aleta · #9 (**permalink**) 11-28-2006, 11:12 AM

Yes I did. Believe me they said they were on the phone all day about it. I spoke with one of their customer services representatives and after I heard what he said, I asked to speak with a supervisor. She said that it in no way would affect anyone who pays off their balances monthly. I told her someone in her company better do some damage control because this information is out on the personal finance blogs. I told her if the company resorts to this, that I would close my card with them. I also told her that whoever worded that should be fired. I told her as a customer that the company owes its customers a personal letter on this issue. She said that she was going to suggest it and well you know.

b4freedom · #10 (**permalink**) 11-28-2006, 12:29 PM

Quote:

Originally Posted by Aleta

Yes I did. Believe me they said they were on the phone all day about it. I spoke with one of their customer services representatives and after I heard what he said, I asked to speak with a supervisor. She said that it in no way would affect anyone who pays off their balances monthly. I told her someone in her company better do some damage control because this information is out on the personal finance blogs. I told her if the company resorts to this, that I would close my card with them. I also told her that whoever worded that should be fired. I told her as a customer that the company owes its customers a personal letter on this issue. She said that she was going to suggest it and well you know.

You Rock!

brady_44 · #11 (**permalink**) 11-29-2006, 08:35 AM

Isn't a grace period just a period of time after you miss your payment that they allow you to go interest free? I'm kind of surprised they gave that long of a grace period at all since you can pay your bill online.

tinapbeana · #12 (**permalink**) 11-29-2006, 08:42 AM

Quote:

Originally Posted by brady_44

Isn't a grace period just a period of time after you miss your payment that they allow you to go interest free? I'm kind of surprised they gave that long of a grace period at all since you can pay your bill online.

grace period is usually the amount of time you have between making a charge on your card and when that charge actually begins to accrue interest, and to my understanding has nothing to do with whether or not you've missed a payment (unless your fine print says missing a payment or making a late payment forfeits your standard grace period!).

for instance, say you make a charge on your card on 12/1/06 and you have a 30 day grace period. say you get your bill on 12/10 and it's due on 12/30. the charge you made on 12/1/06 wouldn't begin to accrue interest until 12/31/06, so if you're paying the card in full every month you would not pay interest on the charge you made on 12/1/06.

b4freedom · #13 (**permalink**) 11-29-2006, 08:43 AM

No, a grace period is the time from the moment of purchase to the time that they charge you interest. Cash advances tend to have no grace period. You pay interest as soon as you take out the cash. If my purchase has no grace period, then I would start paying interest as soon I made the purchase. If I have a grace period, I am given a stated amount of time before I have to pay it. If I go beyond that time, I start to pay interest on it. It’s always important to know what your grace period is. If you always pay off your balances in full, the grace period is basically giving you a “free” loan.

Elgin526 · #14 (**permalink**) 11-29-2006, 09:01 AM

I got the same notice and wondered the same thing, if they were now going to charge interest starting the second the purchase posted!

So, Aleta, you're saying Chase told you they will NOT charge interest immediately? I hope they don't, my Chase card earns me United miles and I'd hate to have to close the account, I like my miles! It's also my oldest major credit card so it looks great on the credit report. But we use it so much (and pay it off each month) that I just can't bring myself to pay interest. We'd have to start using our Capital One account for everyday purchases.

poundwise · #15 (**permalink**) 11-29-2006, 10:37 AM

I hope this works out for those of you affected, however, there is no way that I would accept what I was told by phone over what I was given in print. If the verbal communication 'clarified' the printed terms for you, then great. If it seems contradictory, then you can expect the printed terms to be representative of what will happen, regardless of what you are told on the phone.

I would watch my account carefully going forward until it can be demonstrated what the updated terms mean for certain.

Aleta · #16 (**permalink**) 11-29-2006, 11:24 AM

I have everyone's name down that I spoke to and supposedly most companies record phone conversations. She gave me a number for anyone to call. 1-800-955-9900. She was the supervisor and her name was Tiffany Walker. The first person that I spoke with was Fernando. I always get names. But, I would say that the more people who call the better. I asked for a letter from the company. Anyone calling should do the same. I get back 1% on everything that I buy. That's not too bad.

Hez · #17 (**permalink**) 11-29-2006, 09:37 PM

Wow, what a terrible surprise. Why would anyone use or keep a card with no grace period? There's no appeal in that at all. Good job calling them...I wonder how many people completely skipped over this little notice and remain unaware of it.

MonkeyMama · #18 (**permalink**) 11-30-2006, 10:40 AM

Will be interesting to see what happens.

I thought I heard that if you pay your bill monthly it doesn't matter, but if you don't, then they can charge you from day of purchase? I wondered when I first read this if this just applied to payments not made in full every month? Which is what you were told I guess.

My contract says 20 day grace period and there is 20 days from the end of the credit cycle to the due date - that is the grace period. So for my card it is like Tina described. But it's more like a 50-day grace period for some purchases.

Ah, it is clear as mud. You can't really makse sense of it without reading the entire contract.

Aleta · #19 (**permalink**) 11-30-2006, 11:02 AM

Like you said, I will watch it very carefully. But imagine the person who pays the monthly minimym. I wouldn't count on that. Seems like credit card companies are trying to find back ways and funny wording to get ya.
They have to be the most unscrupulous people in the world. Actually, the amount they charge for loans should be illegal.

poundwise · #20 (**permalink**) 11-30-2006, 12:02 PM

Quote:

Originally Posted by Aleta

Seems like credit card companies are trying to find back ways and funny wording to get ya.

NOOOOOO!! REALLY??

(extreme sarcasm)