Chase finally STOPS increasing interest rates due to low credit scores
The Chase press release:
PR - Chase Ends APR Increases Based on Credit-Bureau Information
Press Release
November 20, 2007Chase Card Services yesterday announced the expansion of Chase Clear & Simple, an ongoing program designed to help Chase customers better understand and manage their accounts, with the adoption of new, clearer pricing practices.
Chase is eliminating a practice, commonly used in the industry, of increasing interest rates for individual cardholders when their credit-bureau scores decline. This change is effective on March 1, 2008.
“Chase’s clear and simple approach has been developed to make us easier to do business with, helping us to build lasting, loyal relationships between ourselves and our customers,” said Gordon Smith, CEO of Chase Card Services.
“As the founder of a leading consumer advocacy organization that has specifically focused on the card industry for about 10 years, I would like to commend Chase on taking such a strong stance on such an important and controversial industry practice,” said Curtis Arnold, founder of U.S. Citizens for Fair Credit Card Terms and cardratings.com. “This is a major step forward for consumers. Chase’s Clear & Simple program is a bright spot in the card industry and illustrates just how serious Chase is about being a consumer-friendly card issuer.”
I’ve been documenting the Chase rate increases for years, see Chase increases rates after balance increases on other accounts
There was Pett v. Chase and I’m sure MANY other lawsuits. I just wonder whether Chase decide to change its rating practices because the litigation became too expensive or whether they realized that they were FORCING many people into default.
Maybe both.
But why WAIT until 3/08? Why continue to increase rates based on flawed credit scores?
Posted by Christine on 11/20/2007 at 12:55 PM
Credit - Collection - Economic News • WaMu 26% interest rate • (2) Comments • Permalink
I know this a blatant change of subject, but as one of many who read your posts on a daily basis, I wanted to wish you a HAPPY THANKSGIVING! 
Thank you, Happy Thanksgiving to all!
