There's no FREEDOM if you don't read the fine print!
Written: Jul 21 '09 (Updated Sep 05 '09)
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Pros: 1% cash back on purchases, no annual fee, reasonable rates, quarterly bonus rewards
Cons: High Fees, fine print TOO fine, rude customer service, misleading promo material
The Bottom Line: Beware of promotional "reward" mailings. Fees are hidden in the fine print! Don't expect good customer service either!
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| banker66's Full Review: Chase Manhattan |
Last year I was approached by Chase Credit Card Services to switch from their Classic Visa to their Chase Freedom Credit Card. After hearing the benefits, I was convinced to switch. All went well for the first few months and I really had no complaints. I was earning cash rewards and the statement was easy to read. Just recently though, I had an experience that left me disappointed and not very happy with the credit card.
About the Chase Freedom Credit Card
Perks:
I went with the Chase Freedom Credit Card because it had a very reasonable interest rate (I get 7.24% right now); no annual fee and a a $50 cash back (in bonus rebates) after my first purchase. They offer a 0% introductory APR. (Which will be "either 12 billing cycles from account opening for purchases or 3 billing cycles from account opening for purchases depending on our review of your application and credit history.") When I signed up, they said I would be earning 3% cash back on the top 3 categories of purchases I made and 1% of the rest of the purchases. Apparently THAT perk has been changed now. The new wording states "3% Cash Back in rotating categories: you will be eligible for quarterly bonus rewards offers." I don't even know what that means! I can redeem what I earned for cash or travel, gift cards or even statement credits. The cash back rewards never expire either. If you shop online through the "Ultimate Rewards Mall" at participating merchants, Chase says that you can earn up to as high as 10% cash back.
Fees:
According to the "Pricing and Terms", the minimum finance charge is $1.00. The transaction fee for balance transfers is 3% of the amount of each transaction, but not less than $5.00. Transaction fees for cash advances are 3% of the amount of the transaction, but not less than $10.00. Late payment fees are $15.00 on balances up to, but not including, $100.00; $29.00 on balances of $100.00 up to, but not including, $250.00; and $39.00 on balances of $250.00 and over. The Over-the-Credit-Limit fee is $39.00 and finally the International Transaction fee is 3% of the U.S. dollar amount of the transaction, whether originally made in U.S. dollars or converted from a foreign currency.
My Experience
As I mentioned earlier, I have been happy with this credit card and all was going well until I decided to take Chase up on an offer or "reward" as they called it. They sent me what they call "convenience checks" stating that since I was such a great customer and they appreciated my business that they wanted to "reward" me. All I had to do was write the check out to a creditor that wasn't affiliated with Chase and that particular balance would only be charged a 0.99% interest rate for the next five months or so. (it had to be posted by 7/31/09 and be paid off by 12/09.) I never paid too much attention to these checks in the past but this time I had one of those zero percent financing credit cards that was due to expire next month and I thought it was a great solution. I was so thankful that I was actually being recognized for my good credit and long relationship with Chase. (Not)
Here's What Happened
I replaced my French doors and another exterior door almost a year ago that I purchased from The Home Depot. I opened up a Home Depot credit card and did the 0% financing for 12 months. This August those 12 months is due to expire and if that happens and the entire balance isn't paid off, we get charged the entire finance charge from day one. Since my balance on the Home Depot card wasn't paid off yet, I decided to use my "reward" from Chase and write a "convenience check" to pay it off. Once the balance was transferred to Chase, I would only have to pay the low interest rate of 0.99% and had until December 2009 to pay it off. Awesome deal right? Wrong! When I received my statement the next month from Chase, I noticed a hefty "transaction fee" charged to my account. I called the bank and was told that a fee of 3% applies to the amount of each transaction from the offer. WHAT? Where did it say that? Oh yeah .. here it is .. in the FINE print. The VERY fine print. Regardless of my lack of knowledge of the fee, the fact that I have great credit and have been a customer and former employee for 20+ years, Chase would not even agree to reduce the fee. (3% may not sound like a lot but it is when you are talking about a large balance.) I even asked if they could remove the transaction fee and just let the purchase get charged the normal finance charge. NOPE. I agree that my lack of reading the fine print is my own fault but considering all the other factors, I would have thought that to keep a good customer, they would offer some negotiation. I also spoke with a supervisor who informed me that each payment I make from here on out will be applied to THAT purchase only until it is paid off since it has the lowest interest rate. While that 0.99% rate purchase is getting paid down, I not only got whacked with a large transaction fee but the rest of my balance from other purchases is being charged the higher interest rate and I can't even begin to pay those down until this one large purchase is paid off. 7.24% interest is good but not when you can't pay your balance down until you pay off the "lower" percentage transaction. In the end I am paying more out. Sound confusing? It is! Instead of "rewarding" me, they are penalizing me by charging me a whopping fee and by holding me hostage because if I pay the account off and close it now, they already got my fee. If I would have read the fine print, I never would have used that promo check and instead would have have just paid the Home Depot credit card off with a check from my Home Equity Line of Credit because at least then, I would have been able to write off the interest on my taxes. Lesson learned.
** UPDATE** 9/4/09
I'm even more upset with the Chase Freedom Card because my bill was due on a Sunday when the bank branches were closed. I paid the entire balance off the very next day (Monday) at the bank. I checked my account online today to make sure that my balance was zero as I am in the process of closing this account. Instead of seeing a zero balance, I see a $39 late fee and almost $8 in finance charges. I made a call to the customer service department that was listed on the back of my statement and spoke with a representative who was in Missouri. I explained my situation and again expecting that because I never pay late and that I am such a good customer who has all of my accounts with Chase, that they would graciously remove the late fee. I didn't even mention the finance charges. I was flatly denied and told that there was no supervisor that I could talk to. I was floored. I then called the phone number on the back of the card and reached a gentleman in India. He also denied the waiver and said that "because of economy, they were no longer allowed to give out any one time credits regardless of the situation." He said that what he could do for me was use MY cash reward that I earned to apply to the fees they charged me. How is using my rewards HIM helping ME? I then contacted my general customer service department who transferred me to yet ANOTHER credit card area but this time in Texas. I was flatly denied again. After two states and one country later, I finally got the name and address of someone supposedly in charge that I could plead my case to in writing. I have sent a letter and will update this review with the outcome. If the waiver is not granted, I plan to move all of my accounts to another bank. I just can't believe that such a large institution as Chase would rather lose a loyal, longtime customer than to waive a mere $39 fee.
Long Story Short
The Chase Freedom Credit Card is not a horrible credit card but sometimes customer service (or lack thereof) makes all the difference. There are many better cards out there and I recommend that you bypass this one. If you do go with or already have this credit card, not only be aware that if you have a problem, you will receive terrible customer service, also be very careful of the "reward" offers that they send you from time to time. They never really "reward" you and as the saying goes, if it sounds too good to be true, it usually is. If it can happen to a person that worked in the banking industry for over twenty years, I'm quite certain it's happening to many of you. As with any contract or form that you sign, take it from me, ALWAYS READ THE FINE PRINT and don't expect that being a good, loyal customer will get you anywhere!
**Another credit card you may want to avoid is the Sears Gold Mastercard. Read my review here.
Recommended:
No
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Epinions.com ID:
banker66
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Member: Laurie M
Location: Central New York
Reviews written: 48
Trusted by: 22 members
About Me:
I have been working on some projects but will be back writing more soon!
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