Have a travel related question? Post it here, and I’ll do my best to answer it as quickly as possible.
While anyone can comment on regular blog post, registration is required in order to post a question in this space. Creating your account is free, and you'll be able to see when your question is answered, as well as like comments from other users. And of course, you'll earn status points for offering helpful answers!
This space is intended to be more of a community as well, so please jump in and share tips!
New penalty APR on Chase Freedom
I just got mail and email from Chase that they’re making changes to the cardmember agreement on my legacy Freedom card. The eye popping change was this one:
[I]Revised Terms as of 4/10/2021
Penalty APR and When It Applies Up to [B]29.99%[/B]. This APR will vary with the market based on the Prime Rate.
We may apply the Penalty APR to your account if you:
• fail to make a Minimum Payment by the date and time that it is due; or
• make a payment to us that is returned unpaid.
How Long Will the Penalty APR Apply?: If we apply the Penalty APR for either of these reasons, the Penalty APR could potentially remain in effect indefinitely. [/I]
30 percent is no joke, of course it doesn’t say what the premium on the prime rate will be, and that’s on top of the late payment fee.
I pay on time and don’t carry a balance, so the only time I’d be worried about this is like an instance that happened recently where I made a return and the merchant (or their payment service) took forever to post the refund. I forgot about it, the due date came and went and it still hadn’t posted, so of course Chase applied a late payment penalty and interest. Explained what happened and they reversed those charges, and the next day the merchant posted the refund. So it was a hassle, but fine in the end, but makes me wonder if Chase is signaling it will become less customer friendly by adding new penalties to cardmember agreements.