JPMorgan/Chase, Loansharking and Getting even

I got an inconspicuous letter from Chase today. I almost tossed it out as one of those all too frequent "New offer!" letters, but on whim, read it. They were telling me they were going to up my rate from the current reasonable rate of something like 12% to 29.99%.

Why were they doing this? I normally pay my credit card off every month, using it as 25-day float and to rack up points/miles/whatever. Well, recently, I've allowed a balance to build up on it. Amazingly, 2 months later, I get the 29.99% letter. Pretty sneaky.

Below is my response to their attempt to stick it to me.


25 Oct 08

To: Chase Cardmember Service
PO Box 15098
Wilmington, DE, 19850-5098

From: Steve Goldsby

Subj: I'm declining your rate increases for account xxxx xxxx xxxx xxxx


To Whom It May Concern:

I am in receipt of your Change in Terms notice wherein you notify me of pending rate increases.

The purpose of this letter is to exercise my right to opt out the change in APRs. I understand that my card will be closed and will no longer be available for use.

I have been a Chase customer since 1997, and during the years I’m sure I have been a profitable customer for Chase. Therefore, it is unclear why Chase would attempt to raise my APR to 29.99%. Are you kidding me? I can get better rates from the payday loan joint down the street. You’re killing the golden goose.

Maybe your data-mining tools pegged me as a bad customer. Who knows? In any case, as my ex-wife’s attorney will tell you, I’m rich so I’ll just pay this thing off. The last thing I need is some multi-billion dollar conglomerate trying to gouge me.

I also happen to be one of those customers that holds a grudge and tells all his friends when he has a bad experience with a business.

Hope you choke on WaMu.

I’ve increased the margins on this letter so it is suitable for framing, should you wish to provide it to Jamie Dimon as a gift.


Sincerely,



Steve Goldsby