Legal Question in Credit and Debt Law in California

Credit card company slamming good customers with fees

Hi, and thanks in advance! Chase Bank is assessing a new $10/month ''account maintenance'' fee, and raising minimum payments to 5% from 2% of the balance, but only on long-term credit card holders with low-interest transferred balances. Chase told me I can only avoid the fee two ways; I can close my account, and my full balance becomes due immediately (if I could pay it off, I wouldn't have transferred the funds), or I can accept a 2% higher rate on my existing transfer (for a fixed period), which would also add about $10/month to my balance (my current lower rate is good for the life of the transfer). Either way, I lose, and that doesn't seem right. I pay on time every month and follow all the rules. How can Chase suddenly change the terms of a specific promotional contract that's been in force for over 4 years? I only used the account to do that transfer, and have made no purchases on the card. Isn't there some protection against what seems to be blackmail or extortion? Don't I always have the option to close a credit card account and pay my balance as agreed previously? What if they imposed a $25 fee per month instead of $10? What about $100 or $500? At what point does it become illegal? I need help!


Asked on 12/30/08, 7:24 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Credit card company slamming good customers with fees

You should review the new law regarding credit cards, and see if your situation falls into any of the categories it discusses. If not, bring the matter to the attention of your member of Congress, advising that the law needs tweaking, especially if this is being done in anticipation of its taking effect. Good luck!

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Answered on 12/30/08, 8:19 pm


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