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Chase Credit Card ?? Now charging interest on your ?current daily balance? ???

V

Vette73

Lifer
I just got notice that chase will now charge interest on your average daily balance including new purchases. So even if you pay your bill off in full every month you could still pay interest?
The old way, as they put it, was they had a 2 cycle average daily balance method. Now they have, again what they call, the average daily balance including new purchases method. The new method has this as well... "purchases daily balance times purchases daily rate each day only in current cycle."

So it seems, unless I am reading it wrong, that the intrest is times your current daily balance at the time?

Seems fishy or maybe just worded badly?


EDIT

OK seems the new way is better?

"Those who plan to occasionally carry a large revolving balance may find doing so costly due to the "Two Cycles Average Daily Balance" method used by this credit card to determine finance charges, which ends up costing more to maintain an occasional balance compared to the "Average Daily Balance" method used by some other credit card issuers. "

So not sure if the new way is better as its worded very badly and sounds like they are charging intrest as soon as you charge something?

The part that gets me is the "including new purchases method" part. So again maybe its just the way its worded?
 
OK I think I read it wrong. Seems most use the new Chase way and the old Chase way was worse and charged more.


"Those who plan to occasionally carry a large revolving balance may find doing so costly due to the "Two Cycles Average Daily Balance" method used by this credit card to determine finance charges, which ends up costing more to maintain an occasional balance compared to the "Average Daily Balance" method used by some other credit card issuers. "


So not sure if the new way is better as its worded very badly and sounds like they are charging intrest as soon as you charge something?

The part that gets me is the "including new purchases method" part. So again maybe its just the way its worded?
 
Originally posted by: MX2
I'm sure they have a clause somewhere that states they can change the terms anytime they want.
Click to expand...

I would think it's not that simple since they are in a contract with you as much as you are with them. Meaning changes are required to have advance in writing notifications.
 
I got that same notice in the mail and freaked out too. When I calmed down and re-read it, I realized that the daily interest computation is only if you pay interest. Since you don't pay interest as long as you pay the bill off every month, it doesn't matter how they compute it.

Someone posted a similar thread about new credit card terms - I think it was Chase. They thought that they were going to be charged a minimum finance charge every month because of the poor wording of the letter that was sent out. I think Chase needs to hire different lawyers to write their fine print.
 
Originally posted by: MrBond
I got that same notice in the mail and freaked out too. When I calmed down and re-read it, I realized that the daily interest computation is only if you pay interest. Since you don't pay interest as long as you pay the bill off every month, it doesn't matter how they compute it.

Someone posted a similar thread about new credit card terms - I think it was Chase. They thought that they were going to be charged a minimum finance charge every month because of the poor wording of the letter that was sent out. I think Chase needs to hire different lawyers to write their fine print.
Click to expand...

That was me. Still waiting to see what happens.
 
Originally posted by: Lotheron
Originally posted by: MX2
I'm sure they have a clause somewhere that states they can change the terms anytime they want.
Click to expand...

I would think it's not that simple since they are in a contract with you as much as you are with them. Meaning changes are required to have advance in writing notifications.
Click to expand...
Well, they might need to notify you, but that's pretty much it. They all have clauses in there that they can unilaterally change anything they want. You can either agree or close the account. Credit cards are great if you are disciplined enough to never carry a balance and always pay it off on time each month. They are a horribly dangerous tool for those that aren't.

 
Chase are crooks, close the card

So i had a credit card witha 12 year credit history. never one late payment and my credit is excellent. The card had a fixed 8.9% rate for years.

Chase buys the creditcard bank out. I now have a chase card. my payment date for eleven years has always fallen on the 14th to the 16th everymonth ( I checked all my historic statements. )

Chase now has my card for 4 months. I use automatic bill pay to pay my card everymonth on the 13th. I review my statement one month and notice a late payment Fee. WTF.

Seems Chase bumped my due date the previous month to the 10th for that month only, and I didnt notice.

So in October is was the the 16th, nov the 10th, december back to the 16th.

I call customer service and Raise hell.

Stupid person on other end explains to me how "not all months have same amount of days in them is the reason. so the Billing cycle changes"

"Ok, name me the month that has 6 less days in it than any over month."

a pause, "I thought so" "this is F@cking BS " i tell her.

Chase refunds the late fee.

The best part is the next statement i got in December, my rate was bumped to 18.99% and stayed there in January after the late fee credit appeared.

I write a check, pay off card, call to cancel. their specialist offers to lower my rate to 13.99 if i dont close the card, i tell him what happened and how they are f'ing crooks and how I Will never do any business with Chase again in my lifetime.

account closed.
 
Originally posted by: Lotheron
Originally posted by: MX2
I'm sure they have a clause somewhere that states they can change the terms anytime they want.
Click to expand...

I would think it's not that simple since they are in a contract with you as much as you are with them. Meaning changes are required to have advance in writing notifications.
Click to expand...

Wrong! READ YOUR CARD MEMEMBER AGREEMENT! *No I do not work for Chase*
 
Originally posted by: Pale Rider
Originally posted by: Lotheron
Originally posted by: MX2
I'm sure they have a clause somewhere that states they can change the terms anytime they want.
Click to expand...

I would think it's not that simple since they are in a contract with you as much as you are with them. Meaning changes are required to have advance in writing notifications.
Click to expand...

Wrong! READ YOUR CARD MEMEMBER AGREEMENT! *No I do not work for Chase*
Click to expand...

In general, they do have to notify you (or at least make a reasonable effort to notify you) before the changes take effect, even if they don't explicitly say that in the agreement.

However, they can change the rules to whatever they want, and your only real option is to close the account if you don't like it.
 
Originally posted by: Matthias99
Originally posted by: Pale Rider
Originally posted by: Lotheron
Originally posted by: MX2
I'm sure they have a clause somewhere that states they can change the terms anytime they want.
Click to expand...

I would think it's not that simple since they are in a contract with you as much as you are with them. Meaning changes are required to have advance in writing notifications.
Click to expand...

Wrong! READ YOUR CARD MEMEMBER AGREEMENT! *No I do not work for Chase*
Click to expand...

In general, they do have to notify you (or at least make a reasonable effort to notify you) before the changes take effect, even if they don't explicitly say that in the agreement.

However, they can change the rules to whatever they want, and your only real option is to close the account if you don't like it.
Click to expand...

I'll repeat myself: READ YOUR CARD MEMEMBER AGREEMENT!

If you think otherwise try to sue them breach of contract and see how far you get. Cheers!
 
Originally posted by: Marlin1975
Anybody else see this in their statement
Click to expand...

Not specifically but I've seen notices on changes in computing interest and the cylce. I also thoroughly read any offer that comes even though I don't want/need more credit - just as a way to keep in touch with tactics. As long as the grace period exists I don't really care as I don't carry a balance.

As far as other nefarious tactics - guys, READ YOUR STATEMENT EVERY MONTH AND THOROUGHLY REVIEW IT.

I know paying online is great and you get into the routine. But manytimes due date, , changes, etc are buried in your monthly statement. I had one card change the due date from the 1st of the month, to the 22nd of the previous month. This in just the last 60 days.

READ YOUR STATEMENT AND CARD AGREEMENT AND ANYTHING YOU ARE SENT.
 
Originally posted by: Pale Rider
Originally posted by: Matthias99
In general, they do have to notify you (or at least make a reasonable effort to notify you) before the changes take effect, even if they don't explicitly say that in the agreement.

However, they can change the rules to whatever they want, and your only real option is to close the account if you don't like it.
Click to expand...

I'll repeat myself: READ YOUR CARD MEMEMBER AGREEMENT!

If you think otherwise try to sue them breach of contract and see how far you get. Cheers!
Click to expand...

They can say whatever they want in the card "memember" agreement. If they change their interest rate to 100% overnight (or -- why stop there -- make it retroactive for the last year, and add a $1000 a month fee) without giving people reasonable warning and a reasonable chance to opt out, and try to collect, they'll get their pants sued off. Predatory credit practices don't go real far in US courts for the most part. Credit card agreements (and most financial agreements) are more regulated than general legal contracts in the US.

Even in a general service contract, a "we can change the terms of the agreement at any time" clause probably wouldn't let you get away with things like retroactive billing changes, or unreasonably increasing the price of a service with no warning. Intentionally structuring a contract that way with premeditated intent to make a move like that seems to me like it could be considered fraud (though IANAL).
 
I got a notice in my final statement (I payed the card off) from them about a class-action lawsuit due to excessive charges for those that were using their Chase cards for foreign transactions.
 
Chase isn't on my favorite card list, but I still have about $100 in points on my Sony card. I need to find something to redeem that for and then put the account in idle status, once I pay off the current balance (at 0% -- ending in June).

I like my USAA card, but the rate sucks right now. Need to call and find out why.
 
your chase card should come with something called "grace period". unless they changed that, otherwise, nothing to worry about.
 
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