Saturday, July 26, 2008

Chase and the Run Around

Just look around. It's everywhere, that friendly blue sign, "Chase Bank." The white logo like a circle of friends holding hands, always pictured with kids running through sprinklers, freshly mowed green grass, a dog wagging it's tail, and a new red brick home. You've seen them. They on every corner. Convenient, right? And they have all those great offers: $75 bonus if you sign up today, earn 3% back on gas and groceries, no annual fees!

DON'T GIVE IN!! I had a terrible banking experience with Chase, and after talking to others, I'm not the only one. There is a hidden fee for everything, and there is up to a six day turn around for processing checks, cash deposits, paying bills, or transferring money, which results in even more accrued fees.

1)I signed up with Chase when I moved to Houston. I told them I was starting a two-year Masters program and they recommended that I sign up for their Student Checking Account. It account is for ages 18-24. On my 24th birthday, they began taking automatic withdrawals from my account without sending any notification.

Chase's explanation: The account is valid until the day you turn 24, not while you're 24. I could avoid fees if I made 5 transactions on my debit card each month and had automatic deposits.

2)When I made deposits, even cash deposits and checks from Chase, it would take at least three days for the money to show up on my account and made available to me.

Chase's explanation: It takes time to process money and to make sure the checks are good. (Even cash?! Chase checks?!)

3)To make payments on my Chase Credit Card I made simple online transfers from my Chase Checking Account to my Chase Credit Account. The money would be taken immediately from my checking, but would not appear on my credit card until three days later.

Chase's explanation: That's just how it is.

4)Frequent late fees showed up on my account, not for $5, but for $40 each! I keep up with my accounts regularly, so I often couldn't figure out the reason.

Chases explanation: Don't pay early. Don't pay late. There is only a 10 day window to pay. If you leave too much time (remember the approx. 3 day processing time?) and your payment arrives on the day of the statement it won't count as payment on the statement. If you don't leave enough time and your payment happens to be processed after the statement date there is an automatic late fee.

5)Over Limit Fees of $40 each showed up on my account after I had made payment my account. My card was never denied at time of purchase.

Chase's explanation: If any purchase is processed putting you over your limit during the payment processing time it will accrue an a $40 over limit fee. There are no stops or alerts to prevent you from going over your limit.

Could they have devised a better plan for ripping people off? It seems especially designed to hurt students and people living on the edge of their income. It took me several trips to chase and over a week in order to close my accounts. They also have a crazy rule that you can only challenge extra charges and fees at the branch where you opened the account. Since I opened the account in Texas, but am living in Ohio, that's not really possible.

To add insult to injury I received a bill from Chase today for the credit card that I closed in July. A month after I closed they account they decided to reverse a refund on a late fee they had granted in June and had been charging more late fees on the reversal for the last two months. Unbelievable!! After another hour on the phone, I had better be done with Chase for ever, but I'm not getting my hopes up.

On a happier note, banking with Mountain America Credit Union is great! Money I deposit shows on my account instantly. Account transfers are made instantly. There are no hidden fees. Their late fee, if I were to accrue one, is only $5. Payments that are being processed appear instantly on my account. I cannot go over my limit because 1) I always know what is available, 2) and the card will not process if I'm going to go over my limit. That way, I'm alerted that I need to make a payment. Thank you Mountain America!!

1 comments:

Anonymous said...

Amen!! I love Mountain America as well. I never deal with a bank if I can help it. Thanks for the "heads up" about Chase.
[mom]