Credit Cards: Credit Industry Credit Card Changes

Credit card issuers are fighting back the recent credit card changes by charging higher interest rates, higher credit card balance transfer fees and even charging a minimum monthly finance charge.

Balance transfer fees used to be capped at a certain dollar amount, then it was raised to a percentage of the transfer usually around three percent. Now most credit card issuers have raised the fee to five percent.

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Like millions of Chase Bank credit card holders, I recently received a letter in the mail from Chase about important changes to my credit card account. Chase came right out and  said why they are making these changes, here are the bank’s exact words:

“We are sending you this notice to let you know that we will be making some changes to your credit card account in response to market conditions, new federal laws and regulations and our increasing costs.”

Some of the credit card account changes include the following:

• Credit card balance transfer and cash advance transactions fees are raised to 5% of each transfer or advance.
• Chase has the right to decline any standard APR balance transfer transactions, including balance transfer checks on your account
• Placing limits on or stoping your ability to make cash advances and balance transfers
• Clarifying the ways in which credit privileges or account features can be closed or suspended by Chase
• Minimum monthly finance charge is now $1.50 if there is a finance charge for a given month

I can remember paying off a credit card one month and receiving a credit card bill the following month for interest charges of less than 50 cents. I wonder if Chase will raise the charge to a $1.50 instead of just zeroing out the balance. By the way, Chase says you have the option to cancel your account if you don’t like the changes but you’ll have to pay off the balance when doing so - some option.

Has your bank changed the terms on your credit card account recently? Let MonitorBankRates.com know about the change and we may post them. Contact us