(Update - Oct. 8, 2010 - Please go to this article as well to learn about the Chase Bank Balance Liquidation Program)
I just spoke with Chase Bank Credit Card Pro-Active Solutions Department. I did not go through the actual process of requesting a credit card "loan modification", but you can. The loan modification is for anyone who cannot afford the Chase Bank 2% to 5% raise in the monthly minimum payment on their low interest credit card loan.
Basically, you will be asked what your income is. Your deal will be based on your income and your ability to pay back the loan within a five year period. My opinion is that they are not verifying income. However, if you lie about your income and get a new deal, and then can't make the payments on the new deal, you won't be eligible for any additional modification for five years, and your account will probably go to default.
If you lie about your income, but can still make the payments on time every month until you pay off the loan, then, whatever, whatever. Ultimately, Chase Bank IS STEALING FROM YOU because they are forcing you to accept an accelerated paydown of your low interest rate credit card if it cause you to take longer to pay down other debt that is at a higher interest rate! However, a five year deal is better than either defaulting or accepting their 5% monthly minimum payment program if you cannot afford to pay down the debt that fast, or have to lower your payments on other debts that have a higher revolving interest rate charge.
I really don't like that everybody that is about to have their monthly minimum payment raised from 2% to 5% is NOT being notified about the five year plan. Only the bare minimum who check out a blog like this will discover this program. I think not notifying EACH AND EVERY CUSTOMER about the five year deal is deceptive. Everyone who was offered a similar type of low interest, life of the loan credit card offer (a life of the loan percentage rate of anywhere from 1.99 to 5.99 for the life of the loan) should be notified about the five year deal, so why doesn't Chase Bank just offer a one size fits all INCENTIVE BASED credit card debt paydown plan?
In the meantime, the best plan you can get from Chase Bank appears to be the five year deal. Please understand that you will be making that same size payment each month for the next five years AND your card will be CLOSED to new activity of any kind! You should however, retain the interest rate you are currently paying, and in some instances, apparently people are getting even lower interest rate offers.
You can pad down the payment on your five year deal by first making a bigger than normal payment to the account before asking for the five year deal.
I'm still going to ask for arbitration, but for most of you, Chase Bank ProActive Solutions may be the way to go. Allegedly, one can ask for ProActive Solutions at any time as long as their account REMAINS in good standing.
Chase Bank's Pro Active Solution phone number is... 866-351-0182, Pro Active hours of operation, Eastern Standard Time are, Mon-Thur 8AM to 10PM, Friday 8AM to 7PM, Saturday, 8AM to 5PM, Sunday 9AM-10PM
If you go through the process, please leave a comment here as to what your deal was, you can leave the comment anonymously if you wish.
(Edit update - I ended up going for the five year program. I made one payment at the 5% monthly minimum payment, and then I applied for the five year deal. That one 5% monthly minimum payment caused my five year plan to lower by I think it was 10 dollars a month over what it would have been had I not made that one bigger payment first.)
HOW YOU CAN HELP! MAKE A DAILY-PROTEST.com sign and put it where others will see it. Daily-Protest.com signs can be placed in a storefront window, a bulletin board at work, or a countertop. Raise curiosity and awareness about how Chase Bank is harming a LOT of of their BEST customers by making a Daily-Protest.com sign.