Chase Drops $10 Monthly Service Charge
Sometimes banks do listen to complaints from their customers.
On Friday, JP Morgan Chase announced that it is going to drop a $10 service charge that it added to certain credit card accounts earlier this year.
Chase is also refunding $4.4 million that it already collected. Chase said the reason for the reversal and refund is customer feedback.
Experts say that credit card issuers have been very active during the first few months of 2009–raising rates, adding fees, and lowering credit limits. When Chase added a $10 monthly fee, cardholders were angered and loudly objected. While issuers have the right to change rates and terms for any time and any reason, cardholders still have the right to complain, analysts say.
Experts suggest that cardholders ask their issuer to restore the original rate if your rates have been increased for no apparent reason. They also suggest that this is a good time to contact your Senators and House Representatives since both houses are currently considering several credit card reform bills.
Here are some other recent changes that issuers have made that are not very popular with consumers:
* Capital One increased the rates for new customers on 15 cards. It increased the rate for the Platinum Prestige card from 7.15% to 11.9% and the rate for the No Hassle Points card (excellent credit) from 8.15% to 13.90%.
* Citi changed its ThankYou reward structure on March 1. Previously, cardholders could redeem 20,000 Thank You points for any domestic flight up to $400 in value. In March, the structure changed to 100 points per $1. You now have to redeem 40,000 points for a $400 flight.
* Bank of America and Citi began charging a 3% fee for all transactions made outside the US in US dollars. The fee previously was not added when foreign transactions were made in US dollars.
*Starting May 1, Discover will charge a 2% foreign currency transaction fee.