Q: I have had a Visa Business Card with JP Morgan Chase Bank for several years, with overdraft protection for my business and personal checking accounts. The company wants to up my rate from 14 percent to 21 percent retroactively for the overdraft protection. How do I deal with this? – James Poole, Fort Collins
A: You’re not alone, as many credit-card issuers have upped interest rates over the past several months.
It’s in part an effort to elicit more income from those who carry high balances and in part an effort to push problem cardholders — those on the brink of default — into going elsewhere.
Either way, card issuers understand they might lose customers but will recoup the difference with the higher rate.
You do have options, according to the folks at . First, contact the local Chase branch account officer or manager where the account was set up and request that the rate be reset to where it was.
If they won’t relent, you can threaten to close the account and take your business down the street — literally, if there’s a bank there. There’s too much competition today for that to be ignored.
Or you can live with the increase and avoid any overdrafts. If you do have them, make sure you get bank e-mail alerts as there is no grace period for interest on overdraft protection. It accrues immediately.
Also, some banks charge a $10 fee for an overdraft on top of the interest rate. Avoid those type of accounts.
David Migoya wants to get the answers to your consumer questions. E-mail consumertips@ denverpost.com or write to Consumer Shopping Bag, The Denver Post, 101 W. Colfax Ave., Suite 600, Denver, CO, 80202.
