Support of our troops (or not)
 

As many of you may know, my son is currently in Iraq, been there since November. He has a Visa card account with Chase and under the Soldiers and Sailors Act he was being charged 6% interest rate. All nice and good till May of this year when out of the blue his APR went to 25.99%. When my son asked that his rate be restored he got one idiotic answer after the other, stating that 'there were no promotional rates awailable' (he did not ask for one), that 'if he wants to take advantage of the Soldiers and Sailors Act he should provide documentation.'
After a few more messages he was informed that hes account was enrolled into the Soldiers and Sailors Act only till May and if he wants to continue he should provide a copy of his updated orders, but even if he does it will only count from the time they get the papers, not going back.

How can Chase do this to out service men/women, even if the account was enrolled till May it is a disgrace to charge almost 26% APR to someone just out of the military (he is not). And than not even willing to readjust the charges even after receiving new documentation. Not to mention that they never informed him that the rate is going to change, and it is not like he can ask the concierge to fax them his papers if he has any.

Thanks for listening, I only posted because I know many here care.

Peter

This thread is bound to fill your email box with responses. I recommend everyone with a Chase card to contact their 800 number on the back of their cards and express their displeasure immediately if not sooner. I've already developed a lump in my throat since reading your post. Do me a favor and post the 800 number so those of us who don't do biz with Chase can call them also. I for one will. Nat

On edit perhaps there's a branch office where you can do a face-2-face with a TV or other media news person?

Usually these rates only go up like that if you are late in making the payments. If he has not violated their agreement in any way, then I would be very upset with them as well.

I'm pretty sure that Chase is required, under the CSSRA to give him the 6% rate for the duration of his orders, backdating the charges. However, they are within their rights to require copies of his mobilization orders - too many people would take advantage of this.

While he works this out, he should be looking for another card company to transfer his balance to. Better yet, take his tax free pay (if he's in Iraq, 100% of his oncome is federal tax exempt) and pay it off.

Greed, It seems most of the CC companies have become this way. I was once charged %34 on a CC. Personally I think its disgusting to take advantage this way, but I was stupid enough to put up with it during a period of rebuilding my credit after my X got done with me.

hmm, I'm on both sides of the fence here. Managing a group of customer service reps makes me understand their point of view a bit more than I think most people do. Those people that you talk to on the telephone, even many of the supervisors can't do anything about stuff like this because their hands are tied. They have to follow a set of procedures, and if they don't, they can be fired.

Although I appreciate service by all of our military members, I would not risk my job and the feeding of my family to break a procedure on something like this. If you continue to escalate, then I'm sure once they get the paperwork, you can work out a reasonable solution to the rest. The root of the problem is the procedure itself. I seriously doubt that many of these companies write these procedures with greed in mind. I'm not saying it isn't possible, but it could be as simple as someone with the right intentions writing a procedure incorrectly, causing problems for the customer.

I think many people these days read into things too much, and create controversy when there is none. A knee jerk reaction is to do what has been suggested in some of the posts here without knowing all the facts.

Give them a chance. Escalate as high as you can go, try to get them to work with you but be respectful at the same time. If not, then they'll do what I do which is hang up the phone, and let you try again when you can be nice. If you can't get a resolution, then move the card balance to someone who is willing to help.

Thanks for the support everyone, at least I do not feel alone on this quest.

Jack you are right always try to be nice, I always do for two, no, three reasons: It is the right thing to do, people who try to address the issue (in most cases) are not at fault, we are all human bound to make mistakes, BUT unavoidably the question remains: 25.99% after having a military rate. If that is not greed, nothing is. And another thing, I also work with people solving their problems of sort, and I am at times not succesfull in doing so, but I DO get ALL information pertaining to the issue always, whereas some of the Chase reps did not even bother trying to address the question. That is either incompetence at whatever level, or simple lack of care. Also keep in mind that we are not dealing here with a company trying to for the first time to enter the bussiness, we are talking about Chase, and I think one could expect better.

Peter

I thank your family for the service to our country. Let us know how it turns out. If they are unwilling to budge I guarantee I will be canceling my chase card. Nothing gets me more upset than those unwilling to help those defending our country.

I too try to belive in the good side of things and strive for them. However when you try to communicate with some of thses companies you cant help but feel its intentional, and your being ripped off. Hopefully it will get resolved for you. BTY, thank your son for his involvement and support of America.

...some of my son's "handi work" disposing of confiscated amo and explosives....

http://www.strykernews.com/gallery/R...Album/IMG_0157

Again thanks for letting me share, but this kind of stuff gets me really wound up, and I honestly say it would be this way for any member of the miltary not just because it is my son.

Peter

Here you go, from the new Servicemembers Civil Relief Act. Basically it says your son gets a 6% rate - assuming his salary goes down - for the duration of his active duty. And, the additional interest is FORGIVEN, not deferred. Sounds to me that jacking the rate to 25% might be their attempt to get their interest back. That's a no-no and should be reported. I'm assuming, of course, that he's making his payments (oh, and they have to be lowered, too) on time and meeting all his other account responsibilities.


Servicemembers Civil Relief Act
(amends/rewrites the Soldiers' and Sailors' Civil Relief Act of 1940)

The purposes of this Act are--
(1) to provide for, strengthen, and expedite the national defense through protection extended by this Act to servicemembers of the United States to enable such persons to devote their entire energy to the defense needs of the Nation; and (2) to provide for the temporary suspension of judicial and administrative proceedings and transactions that may adversely affect the civil rights of servicemembers during their military service.

Sec. 207. MAXIMUM RATE OF INTEREST ON DEBTS INCURRED BEFORE MILITARY SERVICE.
(a) INTEREST RATE LIMITATION-
(1) LIMITATION TO 6 PERCENT- An obligation or liability bearing interest at a rate in excess of 6 percent per year that is incurred by a servicemember, or the servicemember and the servicemember's spouse jointly, before the servicemember enters military service shall not bear interest at a rate in excess of 6 percent per year during the period of military service. (2) FORGIVENESS OF INTEREST IN EXCESS OF 6 PERCENT- Interest at a rate in excess of 6 percent per year that would otherwise be incurred but for the prohibition in paragraph (1) is forgiven.
(3) PREVENTION OF ACCELERATION OF PRINCIPAL- The amount of any periodic payment due from a servicemember under the terms of the instrument that created an obligation or liability covered by this section shall be reduced by the amount of the interest forgiven under paragraph (2) that is allocable to the period for which such payment is made.
(b) IMPLEMENTATION OF LIMITATION-
(1) WRITTEN NOTICE TO CREDITOR- In order for an obligation or liability of a servicemember to be subject to the interest rate limitation in subsection (a), the servicemember shall provide to the creditor written notice and a copy of the military orders calling the servicemember to military service and any orders further extending military service, not later than 180 days after the date of the servicemember's termination or release from military service.
(2) LIMITATION EFFECTIVE AS OF DATE OF ORDER TO ACTIVE DUTY- Upon receipt of written notice and a copy of orders calling a servicemember to military service, the creditor shall treat the debt in accordance with subsection (a), effective as of the date on which the servicemember is called to military service.
(c) CREDITOR PROTECTION- A court may grant a creditor relief from the limitations of this section if, in the opinion of the court, the ability of the servicemember to pay interest upon the obligation or liability at a rate in excess of 6 percent per year is not materially affected by reason of the servicemember's military service.
(d) INTEREST- As used in this section, the term `interest' includes service charges, renewal charges, fees, or any other charges (except bona fide insurance) with respect to an obligation or liability.

Entire act here: http://www.bankersonline.com/regs/20...ml#TITLE%20III

I'm with Jack. Everyone needs to get all of the facts before jumping to conlusions. In my experience your interest rate on credit cards gets lowered with time....not raised (provided you pay your bills on time). With that said, there are plenty of other credit card companies out there willing to offer better interest rates. ;)

Re: Support of our troops (or not)
 

I'm paying less than 6% interest on my Bank One Mastercard and I don't get any special rate. (Might be above 6% now with the rate hike.)

I just don't understand how anyone could pay anything close to 25.99%.

I really have no idea why my rate is so low. I'm not wealthy by any means. I do know I have made every payment on every loan/credit card on time since around 1993/1994. My credit score is good, but not great. I also have only one credit card.

Chase really needs to give this solider back his 6% rate and prorate it back to May.

Brian Elfert

Absolutely[verymad]

I will call.

Just skimmed through this, but, tell him to report this to his C.O. and Jag office. They might be able to do more than he thinks. My jag in the gaurd I had help me once, also happened to be a DetLt in the State Police, full time, with 2 law degrees. But your son has to speak up. When I made SGT on active duty. I found out one of the guys on my new team had big money problems with his landlord. I asked him how long this had been going on adn was told about 5 months. I marched him down to the Jag office. By the end of the week, the landlord was squared away, and was willing to void the lease when we got done with him, so I gave my soldier every afternoon to himself to find a new place expeditiously. Told the 1st sgt what I was doing and he said if anybody gives us a problem about the soldier missing work-call, to steer them his way. Took a week and a half, and a day for everybody to get him moved in. The point is. His chain of command may already have experience in the matter, and aren't gonna be suseptable to their intimidations.