Chase another scam bank?

kitchenshockOctober 5, 2007

Got my HELOC statement today and I noticed that the rate was still 8.25%. I called the bank and asked them why they did not lower my rate when prime changed mid September. After all, they raised the rate mid month when prime went up, I would expect at least the same on the way down. The answer they gave me just floored me.

According to the gentleman that I spoke to, the bank does adjust rates immediately when they go up, but when they go down they do not adjust the rate until the end of the next full billing cycle. This would be Oct 30th in my case. I told him that this sounds like a scam to me. He said alls he can do is open a complaint and they would put through a request to have the rate lowered immediately. He said the bank is working on a bunch of them right now.

So I guess it works like this. If you happen to read your loan statement and notice the rate and call and complain, they'll do the right thing, but if you don't catch them, they'll scam you out of an extra half point of interest for 45 days. Talk about unethical.

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We have our HELOC through USAA. I noticed in our "offers" at the USAA website, that we were approved for a 6.8% HELOC. I called wanting the lower rate because our current HELOC is prime -1 at 7.25% and it hadn't changed. When I called she said that our rate was actually 6.75%. I checked and it was!

She told me the same thing your guy told you, that they adjust with the next billing cycle. Our billing date is the first of the month, so that's when our rate went down. It must depend on your billing cycle, although if they went down mid sept, shouldn't the rate have gone down at the end of Sept and not Oct?

    Bookmark   October 6, 2007 at 1:52AM
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Smells to me a lot like the way business is done.

As I've said elsehwere ... "ya don't ask, ya don't get" ...

... well, not right away, anyway.

It seems to me that the price of gas more or less follows similar principles.

Petroleum companies ... and banks ... don't figure that they are charitable agencies, handing out gifts.

Good wishes for a great weekend.

ole joyful

    Bookmark   October 6, 2007 at 4:46AM
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Joyful, I am not at all looking for a gift, just for the bank to comply with its own lending documents, which simply states that the rate of the LOC is tied to prime and interest will be calculated on the daily effective rate for the period.

sparksals, I could probably forgive them for adjusting it at the end of the current billing cycle, but waiting to adjust it in the next full billing cycle is just slimy. I would expect something like this from Countrywide but not JP Morgan Chase. I am just going to pay the loan off on Tuesday and then borow against it again once it becomes clear what the Fed is going to do at its next meeting.

    Bookmark   October 6, 2007 at 5:52PM
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