Chase Bank, the card issuing arm of J.P. Morgan Chase & Co., has retracted a $10 per month fee it placed on more than 180,000 card accounts.
Controversy arose when Chase added the fee to accounts that had a balance transfer. Previously, Chase offered cardholders promotional rates for balance transfers or other loan amounts, usually for a one-time transaction fee, about 3%, according to media reports.
But in November, Chase notified more than 300,000 cardholders that the previous terms had been changed. Beginning in January, Chase said, it would charge a flat fee of $10 a month, or $120 a year.
"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," said New York Attorney General Andrew Cuomo.
Chase is sending letters to consumers telling them it will stop adding the $10 monthly fee. Cuomo said consumers will save about $22 million in the next 12 months.
Chase spokesman Joseph Evangelisti told reporters that the company "decided to discontinue this practice because of customer feedback."
--dmorrison@cutimes.com
Controversy arose when Chase added the fee to accounts that had a balance transfer. Previously, Chase offered cardholders promotional rates for balance transfers or other loan amounts, usually for a one-time transaction fee, about 3%, according to media reports.
But in November, Chase notified more than 300,000 cardholders that the previous terms had been changed. Beginning in January, Chase said, it would charge a flat fee of $10 a month, or $120 a year.
"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," said New York Attorney General Andrew Cuomo.
Chase is sending letters to consumers telling them it will stop adding the $10 monthly fee. Cuomo said consumers will save about $22 million in the next 12 months.
Chase spokesman Joseph Evangelisti told reporters that the company "decided to discontinue this practice because of customer feedback."
--dmorrison@cutimes.com
