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Wednesday,
Dec. 3
Posted
11 a.m.
More
on Chase monthly fee
Two weeks ago
I blogged about Chase adding
a $10 monthly account service
fee to certain accounts, and
said it applies only if you
carry a balance and will not
be charged if you pay off your
balance. A reader pointed out
that he was informed it would
apply to his account regardless
of whether he carried a balance
or not.
I asked a Chase
spokeswoman for clarification
and here's the response:
For those accounts affected
by this change, the service
charge of $10 will be billed
monthly whether or not there
is a balance on the account.
A customer can avoid the
account service charge by
paying off the account balance
and closing the account by
Jan. 1, 2009. The last billed
charge can also be removed
if the account is paid off
and closed within 30 days
of the charge billing.
This change impacts a very
small percentage of our accounts,
less than one-half of 1 percent
of our accounts on file. It
does not apply to all accounts.
Another big change in the credit
card world readers should look
out for is a letter from Citi
informing them of an increase
in APR. Two of my colleagues
received their letters yesterday
and the increases are substantial,
in the 6 percent to 10 percent
range.
The notices came in plain windowed
envelopes, they tell me, with
the Citi return address but
no other info on the envelope
-- no "Changes to your
account inside!" or any
such note on it. So be sure
you open any mail from Citi
-- or any of your credit card
issuers.
Questions? Comments? E-mail
me at plastic_rap@bankrate.com.
Thursday,
Nov. 20
Posted
11 a.m.
Chase
adds fee, increases minimum
payment
Credit card blogs
and message boards have been
abuzz this week with stories
that Chase will be adding a
$10 monthly service fee and
increasing minimum payments.
We contacted Chase to find out
which accounts this will apply
to. Here's the answer:
The fee you mention
will impact one-half of one
percent of our accounts on file.
Those who are impacted have
carried large balances for over
two years while making little
progress in paying them off.
Beginning January 2009, we will
be adding a monthly service
charge of $10 to select accounts.
We will also be increasing the
minimum payment from 2 percent
to 5 percent.
So that's the
story. If you have a Chase card
and have been carrying a sizable
balance for more than two years,
you can expect to be paying
more each month -- and what
amounts to a $120 annual fee
to use the card. If you pay
off the card and don't carry
a balance, you won't be charged
the monthly fee.
Letters to affected
cardholders are going out this
month, so be sure to open anything
that comes from Chase -- even
if it looks like junk to you
-- and read it carefully. Of
course, that's my advice about
any piece of mail you receive
from your credit card company.
If you're thinking
you'll just cancel the card,
be sure you do it carefully.
The Bankrate feature "Closing
credit card dings credit score"
by Leslie McFadden will show
you how that will affect your
credit score.
Already thinking
about New Year's resolutions?
How about paying off your credit
cards?
Questions? Comments? E-mail
me at plastic_rap@bankrate.com.
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