Did Your Bank Flip You “The Bird”?

After years of aggressive solicitations offering low balance transfer interest rates for the life of the loan, Chase recently sent thousands of its customers payment increase letters. Here’s what it means on a monthly basis: Balance: $10,000 Old Payment (2%): $200 New Payment (5%): $500 Previously, the amount of the payment was approximately 2% of the balance - now it will be 5% and the only way you can keep a lower payment is to close the account and take a higher interest rate. I moved my car loan to a Chase card 2 years ago at 3.99%. Last month the payment was $187 and I paid $301. Next month the payment will be $472! I think I was targeted because I haven’t used the card for any purchases (that wasn’t a requirement of getting the card or doing the balance transfer) so they’re trying to get their money back sooner and be able to use it on a more profit generating customer. After months of watching the the banks get bailouts because they’re “too big to fail” all the while reducing credit limits and increasing interest rates, this is the next version of “Flipping the Bird” at American consumers. Along with the bailouts have come bank mergers so there’s less competition and they’re not worried about going bankrupt. By the way, what they’re doing is completely legal and the new Credit Card Act of 2009 does not address this situation. What can you do? * Expect more banks to follow Chase’s lead - so it’s time to review your credit card balances and step up your efforts to pay them off. * Look for smaller or local banks or credit unions willing to offer better deals.There’s a big vacuum coming in this area and hopefully other financial institutions will see opportunities the “big boys” are leaving on the table. * Let your Senators and Congressional representatives know you are outraged when the big banks continue to take advantage of the American taxpayers.File a complaint with the Federal Trade Commission (FTC) at https://www.ftccomplaintassistant.gov. * Be sure to read any letters or correspondence from your credit card company because it’s probably telling you that they’ve changed the terms. * Adjust any automatic payments you’ve set up or they’ll sock you withlate payments and penalty interest rates. * Stop using the card until the balance is paid off. Don’t close the account unless you have to because it can affect your credit score. * If these increases in payment will put you over the edge, consider talking to a bankruptcy atto ey. If bankruptcy is in your future, it’s best to do it early so you can get it behind you and move on to restoring your credit. In the end, the days of easy credit with low interest rates and big limits are gone for now. Look to your spending plan to live within your means and get the debt paid off. Listen to my thoughts on the changes we’ll see with the new Credit Card Act of 2009 at http://www.MendYourMoney.com/perfect.html. Want to see how soon you can get debt-free? Find out with my Pay Debt Quickly kit at http://www.PayDebtQuickly.com!