Consumer complaint received 2025-05-12 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem when making payments — Problem during payment process
Company: JPMORGAN CHASE & CO.
State: KY

Complaint narrative:
I have sent chase a few secure messages as well as called about issues making payments towards our mychase loan and our personal credit card purchases. In XX/XX/XXXX we balanced out our credit card ( {$0.00} ) and took out a {$4000.00} my chase loan with a monthly payment of ~ {$130.00}. The goal was for that to be the only amount due on the card- and if we made other purchases to keep up with paying them off, as we were under the information that any payments applied outside of the mychase loan monthly amount would be automatically applied to the highest interest rate purchases first ( so ... our credit card purchases at 20.24 % ). However, in XXXX we started making purchases on the card- and also made payments to pay off those purchases in addition to the mychase loan monthly payment. We continued to do this through XXXX until we realized that the purchase interest charges we were getting each month were not referring to the loan interest, but were an additional monthly charge we were receiving that was making our minimum payment go up. This purchase interest charge has varied from $ XXXX per month, and increased our minimum payment by about {$40.00} per month. In looking at our loan, the first payment we made was {$500.00} in XXXX ( our credit card balance was XXXX so this should have been correctly applied ). From then on we have made payments of 135 monthly ( now at 8 months/payments in XX/XX/XXXX ). {$4000.00} XXXX {$500.00} XXXX payment - ( {$130.00} minimum payment XXXX months ) = {$2400.00} remaining due. Now, I am aware this doesn't factor in the mychase loan interest/fee so the amount remaining due should probably actually be higher. However, as of today XX/XX/XXXX our remaining loan amount is around {$1700.00}. This means that over {$670.00} of our credit card purchase payments have been applied incorrectly to our my chase loan. And that has resulted in monthly purchase interest charges despite us making payments towards those purchases to keep them paid off. And now the only way to pay off our purchases ( we were told in our phone call to chase ) is to pay the interest saving balance in full- which has ballooned to {$1100.00}. The whole goal of the mychase loan was to have XXXX low monthly payment we could keep up with for a large purchase, while avoiding the highest interest credit card charges by making sure to pay off our smaller credit card purchases on time as we go. Now we are stuck with a loan being paid off faster than needed/planned and a large credit card payment ( the {$1100.00} ) that we can't pay off because we have ALREADY been paying those purchases off, and are now getting additional purchase interest charges monthly on top of it all. This means we will keep accruing a credit card balance and purchase interest charges every month until the mychase loan is paid off- since chase is applying all payments to the loan and not the minimum payment for the loan followed by highest interest rate charges first- keeping us locked in a cycle of increasing debt.

Company response to consumer: Closed with explanation