Investing Blog

Jordan…
I have received this deal, and have been sharing it with the fine people at the Oregonian Newpaper in Portland Oregon. Take a look.

Jordon,
Thank you, you are a God-send! I was in a real pickle as to how I would escape financial ruin with my payment going up 150%. I spent 15 minutes on the phone with an extremely nice young man and had my average rate taken from 8.5% to a 6% fixed, for 5 years, closing the account, and giving me hope on the horizon of getting out of credit card hell. Now if our Country could out of hock, and everyone else in the country, the USA could once again be the greatest nation on earth, rather than the greatest creditor on the planet. Bless you!

As a “PS” to anyone else trying to enroll in this program: make sure that your income versus out-go numbers don’t scare them away from setting up the program for you. They still have to see evidence of “an ability to pay”, not just an inability to pay a higher amount. In exchange for a great exit strategy, you can figure out a way to mmake those reduced payments, can’t you? It is well worth it, and thank GOD that Jason has posted this step by step process.

Wow!!! This really works. You saved my life and maybe my business, too! I had one huge fixed rate amount for myself and one for the business with Chase (both were for financing our new business–what a bad time to have one). I called about the 60 month/2yr. plan for my personal account and they offered it to me for the business one as well. I’m now going to get an even lower interest rate (2%) on both and have lower monthly payments (rather than the astronomically higher one of 5%/mo. What an amazing deal. Thanks so much for posting this!

I too did this exact same thing on July 7th, they gave me 5 yrs. at 2% interest on my 24,500.00 balance. They said once I made my July payment it would trigger the new terms of my “loan” and that would be that! So I went online and made my payment that wasnt due til July 24th and sure enough, about a week later I received confirmation in the mail of the changes to my account. I actually received 2 letters, one dated July 8, stating they reduced my credit line to 25,500 ( I owe them 24,500) and the second letter dated 7/10/09 outlined the changes to my account. A fixed rate of 2% apr for all balances for 60 months. Hooray Hooray!!! I still hate Chase and will never do business with those snakes again, but I heard about this from someone else online, gave it a try and it works! But yes, be NICE! I know it’s hard to do, as it was for me…but after 3 weeks of not sleeping and feeling sick to my stomach, not knowing what in the heck I was going to do…this was an answer to my prayers. I will pull my credit report in a month or so to see what effects these changes had to my FICO. Good Luck to all and please let everyone know about this! But I’ve also read of a couple people who’ve tried it and it hasn’t worked for them. But debt/income ratio is very important here and the fact that my home is paid off (paid of with my Chase CC) helped alot I’m sure.

Is this some sort of Debt resolution company not related to Chase at all? What is the impact on credit score? It sounds too good to be true.

Jen,

This is a department within Chase. Your score will go down but only a little since your account will be closed. It is better than defaulting by not being able to pay the higher min payment.

I just attempted this process with Chase and it didn’t work. Based on the way I communicated my current financial situation, they decided I wasn’t needy enough to qualify for the program. The message: Be sure to communicate your situation such that they believe you’ll pay, but can’t pay very much. They assessed me as being able to afford the 5% minimum, so I just need to accept this unwelcome adjustment in terms. I now take their name literally. Long-time customers who have always been in good standing and are among the fiscally responsible members of today’s America will be “Chased” away. That said, I’d like to offer a sincere thanks to all of you who are NOT taking direct advantage of tax-funded bailout programs to pay for past indulgences. And a fair warning about doing business with Chase since their business model seems to be focused on attracting only higher-risk customers. Is this likely to pay off for them in the long run?

If I am not mistaken starting in February 2010 a new law kicks in: payments must be applied to balances with the higest rate first. This law can be used to the advantage of people whose minimum payments have been raised. I don’t want to disclose my strategy just in case Chase gets wind of it and preempts with additional changes in their terms. HANG IN THERE TILL FEBRUARY AND YOU CAN HIT CHASE WHERE IT HURTS.

Anybody checked if “TOTAL DEBT RELIEF.NET”approved by BBB.office
when I called 1-877-890-2941 I did not hear a message from CHASE!

http://www.youtube.com/watch?v=AISu9ho1FfA
call 202-224-3121 US.House
800-432-3117 annoy the living hell out of chase&its management
877-ASK-FDIC why Chase is getting away with it

Sam,

Who did you get when you called that number?

Sean,

Try filing a complaint with the OCC….I did and Chase called me and offered the 2% 5 year plan with out asking any questions, just to satisfy my complaint with the OCC, because they have to report back to them on how it was handled. I was just planing on taking out 401K money to make up the difference for a year until I was back down to what I had been paying. I took the offer since I figured that they would end up either closing my account or slashing the credit line anyway. I have read a few other blogs where after complaining to the OCC resulted in the same offer.

Paul,

You are correct about the Reg’s changing in Feb however there is a catch. The only money applied to the higher APR is the amount that you pay ABOVE your minimum payment due……

Clow,

You are right I didn’t read it all the way thru should have known there is a catch, well…that blows a big hole in my strategy.

Paul,

Don’t feel bad I was headed down the same track until i reread it!!

I was shocked when I receive my bill from Chase more than doubling my minimum payment due. I’m so thankful that I read Jordon’s step by step process while waiting on hold with chase (being switch to 4 different people). They were trying to offer me an option of raising my interest rate to 7.99% in order for them to give back the 2% of my minimum payments and only until Aug.2011 and close my account. Then I had them switch me over to the tel # given by Jordon 1-877-890-2941. It’s the “Balance Liquidation Program”. Basically, I claimed hardship, (I told them my hours were reduced at work) answer a few questions regarding monthly income, rent/mortgage, loans, etc. (It took about 10 minutes). They close my account, but reduce APR to 2% and then the minimum payment also reduced to 2% of balance due, actually lowering my minimum monthly payments. It was well worth the half hour I spent on the phone, even though they closed my account, It’s better than defaulting on the credit card, otherwise I would never be able to manage the monthly minimum amount due.

Thank you for this blog and to all the posters who have provided such credible information. What a way to screw customers over, way to go Chase! I do wonder what happens if you qualify for this option in regards to creditrating as well as if there is a prepaymment penalty for paying off more. I owe only little money on my Chase account, but like everyone have been struggling with extra payments over the last few months. 2% sounds like an incredibly good deal – for being able to turn ones back on Chase, unless they find a way to fee and dime you to death on the alternative solution? Any insights?

This offer no longer exists. I just got off the phone. Now they will adjust the minimum payment back to 2% but, AND A BIG BUT, the APR is now 7.99% until August 2011, then changes to current rates!! What BS. I have several accounts with chase, and I am pulling all of them. They just lost another customer (15 plus years!)

Chase is so full of it. I have two accounts. One with an old balance transfer low-rate check, and the other without. The raised the min payments on the former but not the later!! What a$$ holes! Seriously! If they raised the mins across the board, it wouldn’t infuriate me so much, but they selectively did so in order to diminish all their low rate balances as much as possible before the new rules come into effect in February. (where high rates get paid down first) I can almost _guarantee_ you that come February they will lower the minimum payments again back to the legal floor. SOBs. Not even Citi pulled this crap.

Marc Johnson :
This offer no longer exists. I just got off the phone. Now they will adjust the minimum payment back to 2% but, AND A BIG BUT, the APR is now 7.99% until August 2011, then changes to current rates!! What BS. I have several accounts with chase, and I am pulling all of them. They just lost another customer (15 plus years!)

The offer still exists. I called last Thursday and was approved at 2% apr for 5 years.

Thanks to each and every one of you and special thanks for the info on the special phone number. The crimals at chase increased my monthly payments from $200 to $500. their payments are automatically deducted from my checking acct. They lured me in with their great terms for balance transfers and then sucker punched me with this outrageous increase in my minimum payment…As a single retired senior citizen, this is crushing…..it is good to get feedback from others….again thank you

I’m going to call the Chase “hardship” line (877-890-2941) tomorrow, hoping to get the 2%, 5 yr loan. I’ve seen comments that when asked for debt and income not to state too much or too little – can anyone give me a guideline of what they are looking for? 50% dti ratio, 60% dti…less…more. Thanks so much – any feed back is much appreciated.
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I don’t know what they are looking for or if there is any rhyme or reason to what they are doing. When I called, I was offered a 2% minimum payment at 12% interest. When I declined that I was offered the same at 7.99%. I declined that and filed a complaint with the OCC. A few days later they called me and offered me the 2% loan. They are supposed to call back to verify within a week, meanwhile the person told me not to make any payments and my payment due online is $0.00. I am not one to whine and bitch about anything but this is a case where the squeaky wheel gets the grease. I am considering trying to pay the 5% minimum to avoid any negative repercussions from the closed account but that will be a big hit.

Wow, well I called to try the loan thing and they offered me an APR of 12% versus the 4.99% we have now. Crazy! They are still offering the 7.99% for 2 years. Not sure which we’re going to take, but that 12% stunned me.

I want to say thank you to Jordan for posting the info to choose “alternate program”. Initially I thought, that is too good to be true, but I did call the number and found that it was true. Can you all hear the sigh of relief? I have been told there is no negative impact on my credit and the minimum payment can NEVER change nor can the interest rate (for duration of 60 months). Only way this would change is if 2 consective months’ payment were missed, then all bets are off. Thank you Jordan!!! And yes I AM rejoicing (just like your instructions directed me). Dana

We were also able to use this advice, although I didn’t find it until we had one mega-payment and another scheduled. It puts a big dent in my emergency fund, but starting next cycle our payment will go from over $700 to about $250. Information about this program was a lifesaver…thanks so much.

Jordan,

Your post about the alternative plan was a life saver. I have a very large balance on a Chase account that was supposed to be 3.99% for the life of the loan. I have been paying $500 a month on it for 3 years. Imagine my shock when I discovered the minimum was changed to $903.00!! What are they thinking???? Here I am, a person who is diligently paying off credit card debt and Chase has now made it impossible to NOT default. I felt ambushed. But because of your post and the persistent effort of my Googling crafty sister who discovered your post, I have lead to a very satisfactory outcome.

Thank you very, very much for sharing your discovery.

See the new Chase protest video at:

http://www.youtube.com/watch?v=LaCpi0m1wew&feature=channel_page

Sam,

Thanks for the advise on complaining to the OCC. I also complained to my state department of consumer affairs. I have not received a response just yet. How long after your complaint was filed, did Chase contact you?

I just called Chase and got put on the 60-month payment plan.. The best the guy could do is 6% even though I asked him several times if there were any options with lower interest. It’s higher than the fixed 4.99% I was paying before, but I had no other options.

I agreeded to 6% because it was better than the 7.99% for 2 years option and I could not afford the 5% monthly payment.

Like other posters said, take a minute and write down all your financial data so you’re ready when they ask. You want it to be reasonable but not too much so they will deny your request. Chase asks the questions to make sure you have at least a positive cash flow in order to make the payments.

Good luck and I’m so glad I saw this post and didn’t just keep paying the 5% minimum!!

I told ‘em I wasn’t applying for new credit so my financials were not relevant. My credit information is available to them and they can see I haven’t been late for a payment to anything in 20 years. I told ‘em I just want Chase to honor the agreement for which I paid a transaction fee.

I feel sincerely sorry for folks that were put in a difficult position over this. I’m harrassing Chase out of the principal of the whole thing.

I plan on paying the 5% minimum and carefully watching the class action lawsuit. I’ll send ‘em a check for $10 when the account balance is $200.

Thanks! You saved my ass. My monthly minimum was $310.00, then Chase raised it to $730.00. I was totally screwed. I called for this “Alternate Program” and got it. Now my minimum is $240.00.

Good for you Doug! That is exactly how I feel. Chase raised my minimum to 5% without any request for financial information. They should not need it now. A deal is a deal!

Incidentally, the Chase PR department is still using the same tired, old statement that Chase merely wanted its money back “in a reasonable period of time”. CNN aired the story some weeks back. Of course, the main stream media gave Chase a total pass. Nobody seems to want to ask the obvious questions, like why is Chase “willing” to wait longer, if they can charge the customer an outrageous interest rate?

Congress and the main stream media are not interested in exposing the truth or helping the little guy.

I sincerely hope everyone who takes the BLP “deal” fairs well, but I personally would never trust Chase for anything again. Remember how we all got into this mess – by trusting Chase to honor agreements. Good luck to all. Don’t forget to close all your Chase bank accounts, too.

P.S. Are major banks behaving like Super Villain organizations from all those spy movies?

http://www.youtube.com/watch?v=IpHN45Hvpr0

Thank you for posting this info! This offer has worked for me for two accounts and have received the 2% interest and 60 month pay for both accounts. We fell victim to using the access checks when the interest terms were 2.9%…..and never knew we’d have the minimum payments raised to 5%…eek!

For those of you who want this deal…you need to play the game. If they want financial info, just give it to them to save the $$$$. It’s well worth it! Digging your heals in and being pigheaded won’t get you anything but a 5% minimum payment.

People are funny. Actually you need to call and ask for the “hardship” program and you don’t have to talk to Chase Proactive Services. You simply call and tell them you were told that if you were unable to pay the 5% increase that your accounts YES ALL are eligible for the 2% long term program-you don’t want to sound too well versed right ?- and you probably won’t need to give financial info. I don’t know what game you all think your playing but Chase has offered this plan as well as several others forever to the people that actually NEED it. Calling and yelling at Customer Service and telling them how your tax dollars pay their salary will get you nowhere. Or ranting about the stimulus money they got-that they returned-will just make the person on the other end of the line just as aggravated as you are since you are most likely the 20th person that has verbally assaulted them for the day.

If you are really “IN IT TO WIN IT” there is a 0% option too. There is also a 0% option that waives a chunk of fees-But shhhh don’t tell anyone. Keep in mind this may close all of your other credit card accounts with them. Or you can continue to call Pro Services and get the 2% that they are instruced to give all of you. It’s simple call, keep your sob story to a minimum and speak plain english. Don’t expect anyone to feel sorry for you because you get to keep your 1.87% rate but you need to pay more per month.

@Dana

or 5 payments within the 60 months

@John

John if you contact them and tell them you want to have your account enrolled in the 2% program they can adjust your account. It will not be for the full 60 months it will be 60 minus the months you had the 6%. Good deal either way.

@Rae

Complaining to the OCC might get you the result you want in 60 days. In the meantime you can just call Chase and get on the program. By the time they get to your complaint you will be taken care of.

@AC

You could have taken the 7.99% then filed a complaint and gotten the 2%.

And NO I do not work for Chase I have several family members that do and I have personally been on “BLP” paying 0% for a couple of years now-without giving them any financial info

You know I do good things for people and finally I guess Jason posted this doing good for me. Thank You. What got my eye was the step by step. I went from 500 per endless months to 150 for 60. I did not want to burn Chase but they where on there way. Thanks again now taking care of our 2 year old recovering from brain tumor cancer will be less stressfull.

I’m glad to see Chase is working with people that got put in a bad spot over the 5% minimum payment. However, that only makes them a little, tiny bit less less wrong. Before they ever pulled this 5% stunt, I bet they modeled the percent of people that would pay-off, percent that would pay 5%, percent that wouldn’t pay at all, and percent that would ask for help.

I’m not being pigheaded. I’m always professional when I communicate with them. My point is, for people that can make a stand without causing credit consequences, please make a stand. Don’t pay-off Chase quickly. This stunt was modeled as the best way to get people to pay-off quickly.

I don’t want Chase’s “help”. I don’t want to give them information that goes into their models. I want Chase to honor the agreement that was aggressively marketed for years. If that agreement doesn’t work for their business anymore, come-up with a fair resolution rather than modeling and gaming a couple hundred thousand people. If they would have sent out a letter asking/demanding that the “life of the balance” loans be paid back in 3-5 years and ammortizing a payment from that, I would have competely respected that. That’s not the choice Chase made.

Wow, this is excellent information. My neighbor has been complaining about this for months and she had called the # on the back of her card. I’ve printed this to give her..

THANK YOU SO MUCH FOR THIS!!! I just called this # and they lowered the payment with no problems at all.

They told me I have to call a certain # to find out if I qualified or not. They did not give me a straight shot answer right away.

The information here has really been great. It explains what was happening to me last July. Chase increased 2 of my accounts to 5% minimum payments. My hours at my job were in decline with 3 furlough days a month and no overtime. There was no way of making the payments.
I called Chase using the number on the back of the card and explained my situation. There response was to offer me the 2% minimum payment but with a much larger interest rate. Well I was so distraught that I agreed to it. After getting off the phone and thinking more clearly about it, I called back the next day and refused it. Since I did not make any payments on it I was able to do that but they said by opting out it probably would affect my 4.99% fixed promotional rate.
Well I had not heard of BLP (Balance Liquidation Program) until about a week after my phone call to them. They sent me in the mail a notice that the account is closed and that I now have 60 months at 2% interest to pay this off as long as I do not default on it. So what is different in my case is that it wasn’t really offered. It was just initiated without my approval. Suffice it to say I accepted it and am in better financial shape for it.
Thank You Jordan for initiating this post. I now have the knowledge to possibly get my other Chase accounts changed over. I also thank everyone for their response and filling in any gaps.