Bank demands “monthly service fee,” higher payments

A class action filed in January alleges that Chase is forcing its customers to pay a “monthly service fee” and an increasedmonthly payment, without advance notification.

The suit concerns Chase’s “Balance Transfer Checks,” a tool that allows consumers to transfer outstanding balances to their Chase credit cards. The suit alleges that, under the balance transfer program, Chase promised a low annual percentage rate (APR) — typically between 2.99% and 4.99% — not subject to change for the life of the balance.

Beginning in January, however, Chase began slapping a $10 monthly “service fee” onto customers’ bills. Consumers who refused to pay found their APR raised, sometimes to as high as 7.99%. Moreover, Chase asserts the right to again unilaterally raise the rate again after a year.

According to the suit, filed in federal court in California, neither the possibility of a monthly fee nor an arbitrary APR increase was mentioned in the cardholder agreement that customers signed when they first received the card. Although the agreement provides for APR increases in certain circumstances — for example, if the customer misses a payment or fails to maintain a certain balance — members of the class had their rates raised despite having met all of their obligations.

The suit further claims that customers who call Chase to inquire about the fee are given no information whatsoever, either as to the purpose of the charge or how it is calculated. The only way for customers to avoid paying the charge is to agree to the APR increase.

The practice is especially damaging to consumers given the nature of the balance transfer program, which is aimed at those who are struggling to pay existing balances on other credit cards, usually at a higher interest rate than that promised by Chase. As described on Chase’s website, balance transfer cards are “a great way to simplify your finances. Plus, you can often save money on interest charges if you carry a large balance on a credit card with a higher rate.”

Many affected consumers are finding themselves right back where they started when they signed up, or worse. Calvin G. of Brookings, SD says: “I was finally seeing the light at the end of the tunnel, but it just got a little darker again. I find this practice of theirs a total sham, especially to card members who are in good standing. Told the customer rep that I guess they can pretty much do whatever they want and she had no response.”

The lawsuit alleges several counts, including violations of the Truth in Lending Act, which requires lenders to clearly spell out terms and conditions in the initial agreement; breach of contract; and unfair competition.

For newlyweds, the first big financial decisions go beyond how to pay for the honeymoon and how to invest all those checks. They also involve starting a new household on solid ground financially. “Financial incompatibility is a primary reason for a significant number of failed marriages,” said Lee Bowman, National Coordinator for Community Affairs. “Achieving harmony regarding financial matters before marriage, or as early in the marriage as possible, is critical to sustaining the relationship and preventing conflicts.”

Before exchanging wedding vows, have a candid discussion about your finances. Be open and honest about matters that could be a source of friction in the future, such as major outstanding debts from student loans or credit cards.

Some experts suggest that both of you order your latest credit reports and then, together, sit down and review them to avoid major surprises. Credit reports include information on debts outstanding and, for example, whether someone has filed for bankruptcy. By federal law, you can receive one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies (www.AnnualCreditReport.com or call toll-free 1-877-322-8228).

Set short-term and long-term financial goals. Figure out how much money each of you should be able to spend for “fun” and how much you should set aside for important goals, perhaps to buy a home. Financial advisors suggest that young couples consider preparing and following a monthly budget.

Understand the risks and responsibilities of jointly held accounts. If a husband and wife are co-owners of a credit card and one of them goes on a spending spree, the other spouse may be held responsible for paying the bill. Likewise, irresponsible use of a jointly owned credit card by one spouse would be reported on both of their credit histories, and that could damage the “innocent” partner’s chances of getting a good loan or credit card in the future. And when two people use the same checking account, they should share one checkbook and record all transactions, because otherwise they risk losing track of their balance and paying charges for insufficient funds.

 

Many people have come to realize that what we are focused upon often manifests itself in our lives. Thus, if we are apprehensive about or fearful of events in the future, we will often attract that very thing into our lives. Fortunately, it works the other direction as well. If we are strongly focused on what we want, and imagine it happening in our minds, frequently we will receive it, or a form of it, into our lives. Here are four powerful ways to optimize your ability to focus on what you want:

 

1. Take care of your physical body. The mind and body are intricately connected, and care of one will benefit the other. Make sure you are eating healthy foods, taking appropriate multivitamins and calcium, and exercising regularly. These measures will elevate your mood and clear your mind, allowing you to think about the things you desire.

2. Rid your mind of negative thinking. If you are harboring anger toward someone or something, allow yourself the full negative emotion and note how it affects your mood and physical body. Make a conscious decision to release this negative feeling inside yourself for your own benefit. Remind yourself that you are here and now, exactly where you are meant to be. Assure yourself that whatever decisions you made regarding the situation, they were the best decisions for you at the time.

3. Allow that the other person or event has its limitations, and if it is a person, that this individual did what he or she could with what they have to work with. Visualize releasing this person or event into the universe, back to the God who had purpose for it. Begin to seek out the benefits of the experience and look ahead toward what you may constructively do with your experience.

4. Begin daydreaming about the things you want. Is it a material item like a car? A romantic partner? A new job? Allow yourself to think big and experience in your sensory capacity what it will feel like, look like, smell like, and taste like to have that thing. Anytime a doubt or negative thought that you “can’t have that” comes into your mind, imagine a big red “X” through the thought or image, and verbally say “Cancel”. Repeat as often as necessary to plant the positive mindset.

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