New Credit Card Trick - "minimum" payment not so minimum

[Silverbird]

.....His monthly payments were very affordable - just under $300. Paying the minimum 2 percent each month, he'd pay off the loan in about 8 years.

James, who requested anonymity because he’s uncomfortable discussing his personal finances in public –made sure to pay on time each month, jealously guarding the terms of his cut-rate loan. Little did he realize that Chase could find a way to make his life miserable without raising his interest rate.
But Chase recently threw James-- and perhaps hundreds of thousands of other consumers – a huge credit card curveball. The firm sent letters to customers beginning in late June indicating that minimum payments would be raised from 2 percent to 5 percent. In August, his monthly payment will spike to $750.
http://redtape.msnbc.com/2009/07/wh...-balance-transfers-for-the-life-of.html#posts

 

[weatherweenie]

Basically this is legalized loan sharking. Next thing you know, they'll send out Tonya Harding to whack you in the knee!

.....His monthly payments were very affordable - just under $300. Paying the minimum 2 percent each month, he'd pay off the loan in about 8 years.

James, who requested anonymity because he’s uncomfortable discussing his personal finances in public –made sure to pay on time each month, jealously guarding the terms of his cut-rate loan. Little did he realize that Chase could find a way to make his life miserable without raising his interest rate.
But Chase recently threw James-- and perhaps hundreds of thousands of other consumers – a huge credit card curveball. The firm sent letters to customers beginning in late June indicating that minimum payments would be raised from 2 percent to 5 percent. In August, his monthly payment will spike to $750.
http://redtape.msnbc.com/2009/07/wh...-balance-transfers-for-the-life-of.html#posts

 

[Frixxxx]

Basically this is legalized loan sharking. Next thing you know, they'll send out Tonya Harding to whack you in the knee!

She's at my door....

This just happened to me....My credit Limit was dropped 22%.

16 years with a credit card company and I get treated like it was because of me they are hurting.

Anyway, my brother had a $5,000 Card with $3,600 balance. They lowered his card to $3,700. If his next payment $110 was late, it would put him over his limit.....hmmmm sound fishy?

 

[Steadygain]

No it sounds CRIMINAL

Somehow reminds me of how I wish I could change the Prison System for 'select criminals'

Would start a TV Show - called 'Criminal Entertainment'

Madoff would have steel strips wrapped around his privates and abdomen - which would have the ability to squeeze at pressures far beyond human capicity.

These would be 'remote controlled'

Would dress him up in a clown outfit - with the big shoes and fake hair and nose and all that stuff and force him to juggle 3 balls. He would either 'learn this talent and become really good at it' or pay the price.

So anyway the show would reveal his expressions and how quickly he would strive to 'entertain us'. Then I'd kind of turn it into a circus and have some youngsters from the audience stand near by with long paddles and swat his rear while he's juggling. And if he ever got mad and started to retaliate - especially towards the kids - I'd give a little boost to the pressure.

Well anyway - the ones who engineered the BS Loans and the Execs that got a fortune out of this mess would equally be a part of the show.

Whoever is behind 'taking advantage' of guys like your brother should be 'put to shame'

 

[Birchtree]

Don't worry no one is immune. Continue to pay your credit card bills. I plan to pay off some cards when the SPX reaches 1000 - I'll write checks against my margin and poof the cards are gone and my margin interest rate will be 3%. That's what building a portfolio can do - acquire as many assets as you can. Just be sure the bull is on your side.