A reader named Patty pointed me to a Wall Street Journal article reporting that Chase is raising rates and adding fees for some cardholders:
J.P. Morgan Chase & Co.’s Chase unit is raising its rates on credit-card cash advances and overdraft protection, as well as its default rate, which is triggered when cardholders exceed their credit limit or are late on their payments. The bank will also start charging a new $10 monthly service fee to some cardholders who have been carrying large balances for at least two years, while raising their monthly minimum payments to 5% of their outstanding balance, from 2%.
Chase’s new monthly fees and higher minimum payments will mainly affect customers who have been carrying large balances on cards with low promotional rates for at least two years, says spokeswoman Stephanie Jacobson.
“The total number of customers is relatively low, but the balances that these customers carry amount to billions of unsecured debt,” she says. While these customers cannot opt out of the new terms, she says, they can pay off their balances or maintain their current minimum payments in exchange for giving up their promotional rates. A higher rate, however, means that more of a customer’s monthly payment goes for interest and less to repay the loan.
So… It’s a $10 monthly service fee, plus the minimum payments are more than doubling. Plus it looks like you can’t opt out without giving up your promotional rates. Makes me wonder if they’re not targeting people who are taking advantage of long-term balance transfer offers.