Legal Question in Credit and Debt Law in Massachusetts

Credit Card Change of Terms

For several years I have been carrying balances of over $10,000 on two Chase credit cards. The interest rates I accepted were very low, varying from 2.9% to 4.9%, which were described as ''for the life of the loan.'' The ''for the life of the loan'' language is why I transferred these balances onto the cards.

I have ALWAYS paid my minimum payments on time, but in spite of this, Chase has just changed the terms of the agreement: they are not raising the APRs (they claim they are unable to do this, even though the murky fine print seems to give them the right to anything they want, which I find outrageous), but they are making the minimum payment go from 2% to 5% and they are imposing a monthly $10 fee.

They will give me the option of keeping the minimums at 2% and avoiding the fee ONLY if I agree to an APR increase to 7.9%.

To me, this seems like fraud, and the worst kind of manipulation. A monthly fee is equivalent to raising the interest rate, and the higher minimum is simply designed to coerce me into accepting the higher APR.

Can I stop this? Can they really charge me any fees and minimums they want to?


Asked on 12/04/08, 8:26 pm

1 Answer from Attorneys
JOHN TATOIAN LAW OFFICE OF JOHN A. TATOIAN ESQ.*Licensed Only in Massachusetts

Re: Credit Card Change of Terms

Credit card companies are a business, and as such, will do anything to increase their profit margin, sometimes engaging in illegal conduct. The fines or penalties assessed them, if any, are considered a "cost of doing business". The formula credit card companies use is thus: "Benefit from conduct" LESS "Costs, fines & penalties." If the sum result is positive, then they proceed with the conduct. The issue of whether or not the credit card company you have contracted with can demand more money is a question of fact dependent upon the language of the agreement and which law governs. As such, I would need to examine the agreement carefully to render a professional opinion. Please feel free to contact me direct for a free initial consult based upon the facts of your specific situation.;))

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Answered on 12/14/08, 9:59 pm


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