Raising minimums 2% to 5% per month?

iVillage Member
Registered: 07-06-2009
Raising minimums 2% to 5% per month?
4
Sat, 08-29-2009 - 12:15pm

Guess the apple didn't fall far from the tree because my Mom also has CC debt.

She called me in a panic this morning because Chase was raising her minimum payment per month from 2% to 5%. She has a couple of cards with Chase and her payments are going to jump from 480 --> 1200 and then the other one will go from 300--> 600 per month.

I am just wondering if any of you have also experienced this? How did you handle it? Will Chase or any of the other cc companies doing this negotiate? Can the CC companies do this? OMG!

What options might she have? Given her other bills (mortgage, car, insurance, cc, etc) she can't handle these spikes in payments

Any advice would be greatly appreciated.

And here I am with knocking on wood, crossing my fingers, etc praying that this does not happen to us.

Thank you for your advice!

iVillage Member
Registered: 01-25-2009
Sat, 08-29-2009 - 3:12pm

Found this link. Now it is just speculation and there is no prove, but it seems to make sense that the increase in minimum payment may be just a tactic to get the card holders to agree to higher interest rate in exchange for lower minimum payment. In the long run, either way you end up paying a truckload of money on interests.

http://credit101.wordpress.com/2009/06/29/chase-increases-credit-card-minimum-payment-requirement/

iVillage Member
Registered: 07-06-2009
Sat, 08-29-2009 - 8:48pm

Thank you for sharing that link.

It's really disgusting what Chase is doing.

Has this happened to any of you out there?

iVillage Member
Registered: 06-28-2008
Sun, 08-30-2009 - 10:01am
yep, this happened to me, with both Chase cards. They raised my rate and then 2 months later informed me they were closing my card.....BOO Chase
iVillage Member
Registered: 05-06-2007
Sun, 08-30-2009 - 11:15pm
I'm a lurker here, but I'll jump in. I called Chase today when I noticed that my minimum payment went from $69 to $169. They said it was because of the 5% rather than the 2% and that I had received a notice in June. I never charge on that card and have a fixed rate of 4.9% until the balance is paid off (hopefully June'10 if everything works out right) It doesn't affect me much as I pay more than the minimum each month, but I could see how it could really hurt if a person had a large balance. By the way, thanks for this board. It has really helped me with my debt repayment.