Want a better rate? Chase says cancel your card and re-apply...

Discuss anything related to interest rates & fees, like balance transfer offers, low rate cards, annual fees, etc.
7 posts
Brian Dassell
 
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Want a better rate? Chase says cancel your card and re-apply...

Postby Brian Dassell » Mon Oct 15, 2012 10:57 am

I recently phoned Chase after seeing that the rate on my now-slate formerly WAMU card is a whopping 31.99%. When I reviewed their web page for slate applications, the highest rate listed is 21.99%. I don't use the card today (and it will stay that way), but what really upset me was being told that I could get a better rate, but would have to cancel my account and open a new one... with a new inquiry in the process. Needless to say I won't be doing that. My present FICO is 762, and have no adverse notes of any kind on the account history.

I pasted my reply to the email from Chase confirming I was stuck unless I cancelled and opened a new account below:
\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
Ms. Rhodes-

Thank you for your response. Unfortunately, I can't help but think you have missed the core of my concerns- when I look at your slate application page, the details of the offer provide me three (3) APR possibilities- 11.99%, 16.99%, and 21.99%. Where is the ridiculous 31.99% offer mentioned? What FICO score are you expecting someone to have to get to the "low" rate of 21.99%? According to Fair Issac's, mine is 762. They tell me that's excellent- but apparently Chase sees that differently. The fact that I would be granted a better interest rate by closing this account and signing up for a new one is ludicrous. The fact that despite my credit history clearly indicating I have no problem paying my bills the folks at Chase have not moved my credit limit at all during the entire lift of the account is similarly puzzling. I appreciate your willingness to review my credit-limit and to allow me to suggest what amount of an increase I am seeking, but let me ask you this-

If you were me, and you had the "privilege" of using a card that has a 31.99% interest rate, would you use it at all? I didn't think so. I wrote to offer you a suggestion on how you can do more business with me (something I foolishly thought you wanted based on the copious amounts of junk mail you send me soliciting it), you missed the boat completely. The fact that I have now been told twice that Chase values a new customer with no history with them more than me is crazy. How else should I interpret being told that yes, you get a better rate if you close your account and then open a new one?? I don't want an increase on a card with a 31.99% interest rate- or even one with a rate of 21.99%. I'll just keep using my other cards with their sub-15% interest rates. I will be telling everyone about this ridiculous email exchange and will certainly be expressing my frustration wherever I can on the web. Your armies of MBAs and an endless supply of card fees fails to result in you understanding one of the basic lessons of business; that it is easier to keep an existing customer than it is to win a new one. This card will continue to sit in my drawer collecting dust... and you can take that to the bank.

Thanks again for your response.

Brian


jlam572
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Postby jlam572 » Tue Oct 16, 2012 11:58 pm

HAHA that sounds like them through and through....i really dont like their customer service...although others swear by them.
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jeffysdad
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Postby jeffysdad » Wed Oct 17, 2012 5:32 am

I was a Wamu customer and my Wamu card was converted to a plain vanilla Chase card as was my checking account. I didn't use either card, so it really didn't make any difference to me. Chase antagonized me for some reason so I ended up closing the checking account. However, within the year I was back with them. For where I live, they are by far the most convenient bank, and despite some hiccups, I really do think they do a decent job on the customer service side.

I suspect your card's rate is so high because it was a Wamu account. Chase internally might have a flag on the cards that were converted from Wamu and its systems might be set to prevent a rate reduction on these accounts for some reason. That's the only reason I can think of that they would tell you to reapply for a new card.
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jlam572
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Postby jlam572 » Wed Oct 17, 2012 7:58 pm

Oh yeah Jeffysdad I agree the banks are awesome. I had a chase checking account and the convenience on the mainland was great. Check deposit from your cell phone...awesome. Out here in hawaii, theres no mainland banks unfortunately...I just really dislike chase on the credit side.
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JNK
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Postby JNK » Tue Oct 23, 2012 4:15 am

jeffysdad wrote:I was a Wamu customer and my Wamu card was converted to a plain vanilla Chase card as was my checking account. I didn't use either card, so it really didn't make any difference to me. Chase antagonized me for some reason so I ended up closing the checking account. However, within the year I was back with them. For where I live, they are by far the most convenient bank, and despite some hiccups, I really do think they do a decent job on the customer service side.

I suspect your card's rate is so high because it was a Wamu account. Chase internally might have a flag on the cards that were converted from Wamu and its systems might be set to prevent a rate reduction on these accounts for some reason. That's the only reason I can think of that they would tell you to reapply for a new card.


According to an Accounts Manager I spoke to before, a lot of accounts back in 2009 (around the WAMU takeover time period and the fall of the major banks) were issued a pricing change notification that, if you disagreed with the new terms, you could call a certain number and opt out... and cancel out your account in the process. On the other hand, if you continued to use the card and the account, it meant that you agreed to the new terms.

These 'new terms' of this 'pricing change' for a lot of people included a MUCH higher APR - especially if the account had a favorable APR when first opened. Awesomeness, don't you agree?

Owing to that 'new terms' that was 'agreed upon' when the card or account was used later on, the APR thereafter was attached to it and yeaaap, I was told before that in such a case, a new account might be more beneficial as it seemed unlikely that the older account would be subject to future APR adjustments. That does not, however, mean that a new account won't be subject to a future 'pricing change' of a similar nature.
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Postby craigm1 » Tue Oct 23, 2012 9:12 am

it works both ways I had a slate that was originally a banc one card that had a rate of 7.99 and i got them to upgrade me to a freedom and the rate is still 7.99 I think it has something to do with the credit card act

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Ratfacedudeguy
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Postby Ratfacedudeguy » Thu Oct 25, 2012 7:39 pm

Yeah, you're not the only one who got this response. It seems that Chase views a request for an APR reduction as a completely unreasonable request for whatever reason.

craigm, how old was your Banc One card when it got converted over? The CARD Act only protects your interest rate for the first 13 months, so if you were out of that range at the time of conversion, you may just be super lucky.
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