Welcome to Consumer Reports Advocacy

For 85 years CR has worked for laws and policies that put consumers first. Learn more about CR’s work with policymakers, companies, and consumers to help build a fair and just marketplace at TrustCR.org

Letter to Chase about minimum payment increases

During the last twelve months Chase bank has twice notified many of its customers that their minimum payments would increase from 2% to 5% of their balance. Consumers Union has received complaints from more than 100 of these Chase customers, all of whom describe the following similar set of facts:

• These customers held balances subject to “fixed interest rate for the life of the loan” promotions offered by Chase through balance transfer and convenience check solicitations.

• They used Chase’s promotional offer for large loans in reliance upon the terms of the promotion.

• The consumers were not late in making payments.

• Most paid more than the minimum payment each month.

• The minimum payment was raised so that it included 5% of the balance (up from 2%)

• When contacted about the increase, Chase told the consumers that the minimum payment could be brought back down to the prior 2% level only if the consumer agreed to forgo the promised promotional interest rate and instead accept a doubled interest rate.

In this letter to Chase, Consumers Union and NCLC ask Chase for the following:

• Refrain from increasing consumers’ minimum payments, with respect to balances subject to promotional fixed interest rates.

• Restore the minimum payment for those consumers who have been affected by this change in terms, to the level in place at the time the consumer incurred the promotional balance.

• Restore the promotional “life of the balance” interest rates for those consumers who gave theirs up for the sake of a manageable monthly payment.