With the success of our recently discovered income source, all of a sudden we have a healthy chunk of extra debt destroying powers. Since we have a variety of potential targets, we sat down recently to decide which target was most deserving of the full wrath we could focus on it, and made plans accordingly.
Since none of our debts vary all that much in interest rates, we thought we’d take the Dave Ramsey route and go smallest to largest. So, looking at the latest State of the Debt, that would mean knocking out the medical debt, followed by the HELOC, followed by the Low Energy Loan, followed by the Chase card, and then finally the mortgage.
But upon checking the balances of our various accounts online this afternoon, the order has been altered a bit. I noticed that Chase was ten bucks higher than YNAB said it should be. Wanting to fix what was likely an entry error on my part, I investigated further. Only to discover a mystery Account Service Charge for $10. Being as I had no idea what it was for, I sent off a quick email inquiring about it. I received this back:
As your credit card company, we value your business. It’s important to us that we address your questions regarding the terms associated with your account. Thank you for sharing your concerns with us.
We consistently review our business practices to ensure that we provide valued services and remain competitive in the business. As noted in your Cardmember Agreement, we may change the terms associated with your account and will notify you of the change in writing in accordance with applicable law.
Our records indicate that a Change in Terms notice was sent to you in November 2008, which advised of the addition of a $10.00 Account Service Fee and a change to the required minimum payment for your account, effective as of your January 2009 billing statement. Please note that the Annual Percentage Rate (APR) on your account is not changing and you may continue to take advantage of the promotional APR currently in effect on your account.
First off, Chase doesn’t send me a thing. I am enrolled to receive electronic statement, and haven’t received a single piece of paper from them since the last time they sent me a new card because the last had expired.
Nevertheless, searching out past statements just to see what I have apparently agreed to, I find a pdf of my Change in Terms Notice. Along with my Bose Sound Offer and my Holiday Rewards craptacular junk jewelry offer, which I had to check out because who knows what else they may have decided to sign me up for, as they can pretty much arbitrarily change the agreement to whatever strikes their fancy. (And in case you were wondering, nope, no Bose radio is on the way, nor any overpriced costume jewelry!)
And here is the gist of the Changes to my Terms, my emphasis added:
We’re sending you this notice to advise you of some new changes to your credit card account. These changes will take place automatically and will be effective with your January 2009 statement.
Here’s a summary of the key changes:
- A new Account Service Charge of $10 per month will be applied to your account.
- Your minimum payment due will increase from 2% to 5% of the ending balance on your monthly statement. As a result, your required monthly minimum payment will increase.
Important: Your APRs will not be impacted by these changes.
The key factors we considered when making these changes include the current APRs and revolving balances associated with your account.
The minimum payment jump of 3% doesn’t bother me so much. Only, quite honestly, because we can afford it now. Six months ago, it would have caused some serious hardship. There is a world of difference between a $324 minimum payment and a $850 one!
But the $10 a month Account Service Charge? That’s just petty. And pettiness deserves, well, a swift kick to the nether regions.
If you have any questions regarding these changes, please contact us by calling the customer service number on the back of your card.
Hello, Chase CSR? Please close my account. Immediately. I’ll scrape together the cash to pay it in full by the end of the month.
Oh, and bite me.
