Chase Balance Transfer 5% min payment

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ccboston
 
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Joined: Tue May 10, 2016 12:01 pm

Chase Balance Transfer 5% min payment

Postby ccboston » Tue May 10, 2016 12:17 pm

I recently applied for balance transfer through Chase - 0%, 2% fee. All looked good, and it went through. I got my first statement and they assessed a 5% minimum payment. I was shocked. Unfortunately I didn't keep the original offer paperwork. I protested through their site, but they stuck to it. Yesterday I got another mailing from them with the same offer and I scrutinized the details to see if I had missed reference to the higher minimum payment, but no there was no mention of the fact their's is 5 times higher than the norm.

I have had this account for decades and was one of those customers who were assessed additional fees and an increased min payment in violation of the terms of their original agreement years ago. They were sued for this behavior and lost, so I figured they had learned their lesson but I guess not. It also may be that my account is "flagged" because of the earlier lawsuit and other customers may not be assessed the higher min payment they hit me with.

Does anyone know if this is illegal? considered deceptive advertising if they don't note the higher min payment in the offer?

FYI, their nonsensical explanation was this (which is not printed in the offer or anywhere else that I can see)

I understand your concern and I'll be happy to review your
account. Your minimum monthly payment will be the highest
amount of the following to ensure that 1% of the minimum
payment is applied to the principle balance:

- $10.00 (or the amount of the balance if it is less than
$10.00).
- 5.00% of the balance
- The sum of 1% of the new balance, the periodic interest
charges billed; and late fees that we have billed you on
the statement for which the minimum due is calculated.
Statement minimum due includes past due balance if any.


augiedog
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Location: Broward County FL

Re: Chase Balance Transfer 5% min payment

Postby augiedog » Wed May 11, 2016 10:31 pm

I have received the same offer too, and it's for 11 months. If you only paid the minimum balance, you would be 40% away from your principal balance. That is, if you transfer $5000, and paid 5% of that monthly, you will have paid $3000 by the end of the 0% period and the interest rate would go up to something really high (mine says 19.24%) on a $2000 principal.

Personally, I don't see anything wrong with this because this offer sounds very good. My Bank of America credit card sends out balance transfer checks routinely and the fee is 4%, twice what Chase wants you to pay. Also, if you really want to pay off your debts, then you should be interested in paying more than the minimum. You would need to pay 12% of the principal to pay off your balance.

If you need to pay off a higher balance then you might be interested in a personal loan. But those are set up so they become paid off by the end of the term.
American Express: Blue Cash Everyday (10k), Everyday, ; Discover It (7.3k) ; Target (2.1k)

Citi: Diamond (2k) ; Bank of America: Cash Rewards (2.6k) ; Capital One: Quicksilver (3k) , Sony ; Chase: Freedom (3.7k), Slate (3k), (Amazon) ; Barclay Ring ; Synchrony: Walmart MC, Amazon, Ebates

ccboston
 
Posts: 2
Joined: Tue May 10, 2016 12:01 pm

Re: Chase Balance Transfer 5% min payment

Postby ccboston » Thu May 12, 2016 8:38 am

I'm well aware that it's better to pay higher amounts on credit card balances. In fact, the whole point of the balance transfer is to reduce interest expense so I can pay down debt more quickly. What I don't like is deception. Their min payment is 5% and the industry standard is 1%, but they make no mention of this in their offer documentation.

augiedog
Centurion Member
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Posts: 252
Joined: Fri Jun 07, 2013 9:46 am
Location: Broward County FL

Re: Chase Balance Transfer 5% min payment

Postby augiedog » Thu May 12, 2016 11:09 am

I never see any mention of how payments are calculated on the "Pricing and Terms" (the boxed information with your APR, late fees) from any credit card. You really need to read all of the fine print to see how they disclose this. I agree with you that it should be more transparent and be contained in the boxes of information.
American Express: Blue Cash Everyday (10k), Everyday, ; Discover It (7.3k) ; Target (2.1k)

Citi: Diamond (2k) ; Bank of America: Cash Rewards (2.6k) ; Capital One: Quicksilver (3k) , Sony ; Chase: Freedom (3.7k), Slate (3k), (Amazon) ; Barclay Ring ; Synchrony: Walmart MC, Amazon, Ebates

saba
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Re: Chase Balance Transfer 5% min payment

Postby saba » Sat Aug 06, 2016 11:05 am

I received a 1% fee offer, 0% APR, I guess that was pretty good.



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