Karl Grube — Wed, 19 Mar 2008 23:35:29 GMT

CREDIT CARD COMPANIES IN AMERICA

I have had excellent credit for the past twenty years. In fact the credit card companies, American Experess, JP Morgan Chase, and Bank of America have sent me letters extending my credit limits. And then it all came to a crashing halt!

We missed a house payment due to a computer glitch at our home mortgage bank. The new escrow amount was finally straighten out, 8 months later with all penalities and fees removed. MidWestern Financial Credit Union Bank of Ann Arbor refused to take the one late payment off our record. They would not admit any culpibility. J P Morgan Chase and Bank of America jacked up my credit card rates under the “Universal Credit Default” clause which allows on late payment from a spouse with joint ownership of an asset such as a mortgage to be used to raise all credit cards to the maximum of 24.95% plus penalities yielding 32% total. (Michigan)

After months of discussions and letter writing to the credit card report services and to Bank of America and JP Morgan Chase settlement finally evolved. Bank of America agreed with me and returned my rate to its original lower amount. The Credit reporting Services agreed with me and took the blips off my record. On the other hand, J P Morgan Chase sued me for the full amount pluse $2,000 in additioanl fees. We settled one week before trial with J P Morgan taking $6,000 less than the original amount owed. J P Morgan Chase wrote off the entire $25,000, that’s a savings of 35% from their corporate taxes, the lawyers got there juicy cut, and I got a lesson in legalized loan sharking, outrageous usury, and unethical behavior. OF COURSE it will take 3 years to repair my credit. Our congress and the President imposed these new credit card rules in 2005 as part of the Bankrupcy Laws Reform. (some reform?) In my opinion, it is unconstitutional at both the State and Federal levels, but this takes thousands dollars to buy the lawyers necessary to right the ship of justice. Signed: “Discusted Senior Citizen”

The Washington Independent - U.S. news and politics - washingtonindependent.com: Comments by Karl Grube