Consumer complaint received 2019-10-03
Company: JPMORGAN CHASE & CO.
State: NC
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Fees or interest
Sub-issue: Unexpected increase in interest rate

Complaint:
This letter is the letter sent to notify Chase Bank of the error in the interest rate charged on my account. 
Sometime around mid-XXXX XXXX, I received an Opt Out notification from Chase stating the interest rate ( was 9.24 % ) would increase unless I requested to opt out of the new agreement. I contacted Chase, requested to opt out and keep the current 9.24 % rate. I was advised at that time if I opt out, the account would be closed. I agreed to close the account and retain the current interest rate of 9.24 %. The account was closed at the interest rate remained at 9.24 % as agreed. 
XX/XX/XXXX The XX/XX/XXXX payment of {$130.00} was returned in error. I contacted Chase and explained the error and Chase credited all associated fees and interest back to my account. 
o Statement Closing Date XX/XX/XXXX Payment ( {$130.00} ), Returned Payment ( {$130.00} ), Late Fee ( {$39.00} ), Returned Check Fee ( {$39.00} ) o Statement Closing Date XX/XX/XXXX - Late Fee Reversal ( {$39.00} ), Returned Check Fee Reversal ( {$39.00} ), Interest Charge Reversal ( XXXX ), Interest Charge Reversal ( XXXX ) o No other transactions occurred on this account except automatic payments made and interest charges added. 
Statement closing XX/XX/XXXX - Interest increased to 14.24 %. I contacted Chase and the issue was escalated. 
Statement closing XX/XX/XXXX - Interest rate increased to 19.24 % Statement closing XX/XX/XXXX Interest rate increased to 19.49 % Statement closing XX/XX/XXXX Interest rate increased to 19.74 % Statement closing XX/XX/XXXX Interest rate increased to 19.99 % Statement closing XX/XX/XXXX Interest rate increased to 20.24 % Statement closing XX/XX/XXXX Interest rate increased to 20.49 % Statement closing XX/XX/XXXX Interest rate increased to 20.74 % Statement closing XX/XX/XXXX Interest rate increased to 20.99 % Statement closing XX/XX/XXXX Interest rate increased to 21.24 % Statement closing XX/XX/XXXX Interest rate increased to 21.49 % As you can see, the interest rate was increased 11 times since my opt out. My current interest rate should be 9.24 % not the current 21.49 %. 
This letter is to request my account credited for {$2200.00} over charge in interest the past 4 years. A spreadsheet is attached detailing the month by month over charge. 
**************************************************** Chase Response XXXX : Hello XXXX, We received your message disputing the interest charges on the account ending in XXXX. 
XXXX, your account had a variable annual percentage rate ( APR ) based on the U.S. Prime Rate. Hence, the periodic increase in the APR. Please note that there was not an error with the APR on the account, and the account didn't qualify for a courtesy refund. 
We appreciate your understanding in this matter. 
Here 's what you need to know about variable APRs : - The APR may increase or decrease each month if the

U.S. Prime Rate changes. - If the APR increas
es, you will pay a higher interest charge and may pay a higher minimum payment. 
Here 's how we calculate your variable APR : - We add a margin to the highest U.S. Prime Rate published in the Money Rates section of The XXXX XXXX XXXX two business days ( not weekends or federal holidays ) before the closing date shown on your billing statement. 
- We apply the new rate the first day of your billing cycle in which the Prime Rate changed. 
- The Prime Rate is simply a reference index and is not the lowest interest rate available. 
- If the XXXX XXXX XXXX stops publishing the Prime Rate we will select a similar reference rate. 
We value your relationship with us, and we hope that the information we provided is helpful. 
Your Cardmember Agreement explains your full account terms. 
Please contact us anytime with questions or concerns. We are here to help and are committed to providing you excellent service. 
Thank you for choosing Chase. 
******************************************************* XXXX Response : Date : XXXX XXXX To : Chase Card Services Subject : Re : Fees/Interest Charges Message : Did you even read my letter? Yes, the rates are variable. However I received a letter from Chase to " opt out '' which included closing the account and paying the remaining balance until paid at the 9.24 %. Also, I did not say there was an " error with the APR ''. Please forward this to someone that is knowledgeable on the regulatory requirements of the Credit Card act including " opt out ''. I am forwarding this letter to the BCFP ( formally CFPD ) also because clearly Chase system is not designed to accommodate the opt out changes. 

********************************************** Chase Response Date : XXXX XXXX From : Chase Card Services Subject : Re : Fees/Interest Charges Message : Hello XXXX, Thank you for contacting Chase with your concerns about the increase in the Annual Percentage Rate ( APR ) on your Chase Ink Cash Business account. I am sorry as your inquiry wasn't completely answered by our previous email. 
XXXX, your inquiry has been escalated. I understand that you rejected the change in terms and your account was closed on XX/XX/XXXX. With your business card, when you do not make your minimum payment by the due date, the default APR apply. The default APRs would apply to all outstanding balances and future transactions on your account. 
Certain situations, such as late payments, a past due status, an over-limit condition, a returned payment, or any other default reason contained in your Cardmember Agreement ( CMA ) may cause your account to move to a higher APR ( even after account closure due to rejection of change in terms ). If your APR changes, we'll notify you by mail, and the new rate will start 45 days after we send you a notification. So, if you miss any payments or if the account is past due, your APR can increase on a business card. This is where a business credit card is different when compared to a personal credit card. 
Our records show that because of late payments in the year XXXX, your purchase variable APR was increased from 9.24 % to 14.24 % and then to 19.24 %. Subsequent increase in the Prime Rate by the Federal Reserve has resulted in a further increase in your APR and it is currently at 21.49 % variable. So, please be assured that the interest which we have charged you over the years is correct and has been calculated according to the terms of the business cardmember agreement. 
I hope I was able to clarify this for you. If you would like to discuss this further, please call us at the customer service number mentioned below. Thank you for your business with us. 
Thank you, XXXX Chase Email Servicing XXXX XXXX : XXXX

Company response to consumer: Closed with monetary relief