Here is a copy of the coyly worded Chase Bank Proviso the Comptroller of the Currency has left in so that Chase Bank can Defile and Default their customers out of their low interest, life of the loan credit agreements that were already in place. I had to cut and paste it as two sections because it started on the end of the first page, third column, and continued on the first column of the next page. There are no words missing between the first part and the second.
This is patently in correct, and I am surprised the Comptroller of the Currency would include this Chase Bank proviso in the credit card reform bill.Paying down 2% of the minimum can in fact pay off a credit card in a timely fashion, it just depends on WHAT THE INTEREST RATE IS! If the interest rate is LOW, then even a 2% monthly minimum payment is PLENTY to pay down the debt in a reasonable amount of time.
There are times where high interest rates enslave a consumer and they can only tread water. Then there are times when a consumer has EARNED a low interest rate offer because of a stellar payment history. LEAVE THESE LOW INTEREST RATE PEOPLE ALONE!
The one million Chase Bank customers that Chase Bank is TARGETING ALL HAVE INTEREST RATES UNDER 6%! RAISING THEIR MONTHLY MINIMUM PAYMENT IS HURTING THEM FINANCIALLY IF THEY HAVE OTHER DEBT AT HIGHER INTEREST RATES.
This is highway robbery being committed by Chase Bank, and the Comptroller of the Currency seems to be aiding and abetting Chase Bank.
If you are hopping made about this wording please call (202) 874-5750 and tell the Community and Consumer Law Division of the Comptroller of the Currency that this section of the credit card reform bill must be changed so that people who are paying off higher credit card interest rate charges don't LOSE MONEY by now having to pay off low interest rate credit cards at a faster rate!
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.
3 comments:
Not only is the OCC position incorrect, it is illogical. There is a significant difference between DISCLOSING the impact of making only the minimum payment and MANDATING the consumer pay more than the minimum. It begs the question, what is the minimum payment? If you MUST pay more than the minimum, then the minimum becomes a higher amount, and so on, ad absurdum.
Supposedly, the CARD act is meant to protect consumers. Allowing credit card companies to raise minimum payments to a degree that essentially calls their loans DOES NOT HELP CONSUMERS. This is one of many loopholes in the act that must be repaired immediately. Obviously, the possibility was always there in the fine print. However, this is practically a blessing of the practice by the OCC. See what happens when our legislature votes on what it cannot be bothered to read? (One assumes this was inadvertent on the part of Congress).
The American Bankers Association has been lobbying the OCC heavily for years. It appears to be money well spent, as far as the ABA’s interests are concerned. Excuse the pun, but I would not bank on the OCC doing anything useful for the American consumer any time soon.
Check out this interview:
http://www.pbs.org/wgbh/pages/frontline/shows/credit/interviews/mierzwinski.html
Here is the link again:
www.pbs.org/wgbh/pages/frontline/
shows/credit/interviews/
mierzwinski.html
The irony is there was another way to create a loophole that would have been fairer, yes, a fairer loophole.
A credit card company can raise the monthly minimum payment until 51% of the payment is going towards paying down the principal.
While this can be garish for those who are paying very high interest rates, the additional amount that is being every month is actually money that can be respent the following month if it is absolutely necessary, by the consumer.
Additionally, this would protect consumers who are already having allocated at least 51% of their payment towards principle every month anyways, also know as ALL OF THE CHASE BANK BAIT AND SWITCH LOW INTEREST RATE VICTIMS.
Thanks for the link, I hope to check it out later today.
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