We’ve all seen the Chase Ink credit card that Chase Bank has been promoting for the last year or so. In fact, it almost seems like it’s the only credit card they’re actively promoting – as it turns out, that’s no accident. Apparently, they found a loophole in the new credit card legislation that was recently passed, the Credit Card Accountability and Responsibility and Disclosure Act of 2009, or Card Act as it is known. This law was passed in an effort to better regulate credit card issuers that have been preying on consumers with fine print for years. Unfortunately for the banks, these new rules reduce some of the profits that the credit card industry has enjoyed for years through unethical business practices. However, as is normally the case, the banks have smarter lawyers than we have legislators so they have already found significant loopholes in the new law.
Apparently the legislation was written in a way to make exceptions for what were termed “professional cards” – business credit cards that have historically been targeted at small business owners. Aside from the unethical nature of allowing the banks to still prey on small business owners in the same fashion that regular consumers were just protected from – it appears that there is nothing that prevents the banks from issuing these cards to non-business owners.
Enter the Ink Card From Chase and a massive marketing campaign behind it targeting anyone that wants to apply (In the first quarter of 2010, 47 million “professional card” offers were mailed out, a 256% increase from the same period last year, according to research firm Synovate). Since the Ink Card From Chase is classified by Chase Bank as a “professional card”, none of the new rules apply so they can still financially rape consumers with 29.99% interest rates, raise rates on a whim, apply new APR’s to prior balances, etc.
“By pushing professional cards to consumers who otherwise wouldn’t want them, card issuers can get around some of the provisions of the Card Act,” says JV Burr, editor of the Michigan Standard News website.
Chase Bank has wasted no time in finding yet another way to scam the American consumer, so next time you see a commercial for the new Chase Ink credit card, you’ll know why they’re pushing it so hard all of a sudden. If you’ve been a victim of Chase Bank and their new Chase Ink Credit card scam, come share your story in the forum with others so we can stop this deceptive practice by these criminals at Chase Bank.