Back in December of 2008, we commented on Chase’s new policy of charging a monthly fee on customers that were promised a fixed APR for the life of their balance transfer. We found the policy to be troubling, to say the least, as it essentially breached the promise advertised to these customers when they applied for their Chase credit card.
Recently, the state of New York has taken an active role in applying pressure to get Chase to change its policies. Attorney General Cuomo said:
“My office will not sit back and allow banks to promise one thing in its solicitations and agreements with consumers, and then when times get tough, change the deal, leaving consumers holding the bag. Truth-in-lending laws prohibit this very conduct. I am glad that Chase has now reconsidered its ill-advised decision and will now live up to the terms it originally offered and agreed to.”
The Attorney General was provoked to action by complaints from Chase’s customers.
Here at Wallet Blog, we are happy to see that, under pressure from its customers, Chase has come to see the error in their policy. Chase has ceased charging its monthly “Account Services” fee and will offer its customers a refund for the fees it has collected thus far.