Wednesday, May 28, 2008

Bank backs off from credit card policy: Chase Will No Longer Increase Rates Based on Credit-Bureau Information

By Chase-JP Morgan - Nov. 2007
WILMINGTON, DE (November 19, 2007) - Today, Chase Card Services announced the expansion of Chase Clear & Simple, an ongoing program designed to help Chase customers better understand and manage their accounts, with the adoption of new, clearer pricing practices.

Chase is eliminating a practice, commonly used in the industry, of increasing interest rates for individual cardholders when their credit-bureau scores decline. This change is effective on March 1, 2008.

"Chase's clear and simple approach has been developed to make us easier to do business with, helping us to build lasting, loyal relationships between ourselves and our customers," said Gordon Smith, CEO of Chase Card Services.

"As the founder of a leading consumer advocacy organization that has specifically focused on the card industry for about 10 years, I would like to commend Chase on taking such a strong stance on such an important and controversial industry practice," said Curtis Arnold, founder of U.S. Citizens for Fair Credit Card Terms and "This is a major step forward for consumers. Chase's Clear & Simple program is a bright spot in the card industry and illustrates just how serious Chase is about being a consumer-friendly card issuer."

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