Posted by William Charles on May 29, 2019
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Published on May 29th, 2019 | by William Charles

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Chase Changes: Binding Arbitration & JPMorgan Chase Bank, N.A Instead Of Chase Bank USA, N.A

Chase has made some changes to account terms, the two major changes are as follows:

  • All references to Chase Bank USA, N.A will now be JPMorgan Chase Bank. Some people have received alerts from Credit Karma/Credit Sesame saying that a new account has been added, but I think this is just a result of this name change. This is also showing up as JPMCB on those sites.
  • Chase has added a binding arbitration provision.  It looks like those are eligible for the Military Lending Act are automatically opted out of this provision. If you don’t want binding arbitration then you can reject this by mailing a rejection letter to Chase by 8/9/19

The other changes are as follows:

  • Addition of My Chase Loan & My Chase Plan. These are flexible financing offers
  • Minimum payment will now be $35.

Hat tip to reader @GOSavorLA & Travel With Grant



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anon
anon

my email about this also referenced a change of APR.
would my Promotional BT rates be affected? on existing balances as well?

anon
anon

did anyone else have language there about APR changes?

Edmond
Edmond

APR was only referenced in the “My Chase Loan APR” section of the email I received.

Jeff A
Jeff A

What does rejecting a binding arbitration agreement do? Are they just going to cancel our cards?

JuicyJosh
JuicyJosh

IME, rejecting the terms will end the account at expiration date.

you'll be fine
you'll be fine

Rejecting the agreement to arbitrate is not the same as rejecting the terms. They will not cancel your account.

JuicyJosh
JuicyJosh

Def not disagreeing. In other news the Chase name change looked that way on my Equifax yesterday. Looks weird now.

Nick
Nick

Curious about the same, and whether there’s other downsides of rejecting it.

Stacking Points

Does anyone know which issuers already require binding arbitration in their card agreements?

doc
doc

A better question would be; Which issuers don’t require arbitration?

scripta
scripta

Amex since Oct2012, Discover since Jan2015, Citi since Sep2015 (dates approximate).

I think Capital One and Barclays do not. Don’t know about others.

nick
nick

what exactly is binding arbitration?

Lrdx
Lrdx

When you have (legal) issues with them, you have to go through arbitration, and the arbitration’s outcome will be legally binding.

the law
the law

Except when your claim is below your state’s small claims court limit (because the law and the arbitration associations’ rules do not preempt your right to small claims). In that case you can pursue in small claims instead of arbitration. At least one bank (Citi) tried to fight this by moving a claim out of small claims and into arbitration — see emcdemc’s 5-year-long fight described here: https://blog.levelplayingfield.io/i-beat-citibank-and-so-can-you/.

The other, IMO bigger problem with not opting-out of binding arbitration is that you’re not just giving up your right to a jury trial, you’re also giving up your rights to pursue a class action.

Krista check my posts
Krista check my posts

Class action is given up either way. That is the reason companies choose arbitration to begin with.

scripta
scripta

WRONG — you don’t give up class action if you opt-out of / reject the arbitration agreement. Here’s a quote from the email: “Unless you timely reject the agreement to arbitrate, disputes with us may be resolved by binding arbitration. With arbitration, you cannot go to court, have a jury trial or initiate or participate in a class action for your dispute(s) with us.”

Zorn
Zorn

Does sending them one letter work for all of your accounts, or are you expected to send one per card?

slowbrake
slowbrake

Citi’s only applies to one account. Explicitly stated on a letter from 2016:

“Remember, opting out of the arbitration provision on this account doesn’t change the arbitration provisions on any other accounts you have with Citibank”

fjordlander
fjordlander

The terms state that you must include your account number when writing to reject the binding arbitration agreement, so I just listed out all my account numbers with Chase in my rejection letter. Hope it works.

Sevillada
Sevillada

Yeah, the problem is that it’s not clear what happens if you reject arbitration

Krista check my posts
Krista check my posts

Nothing. Any lawsuits are brought to court instead. Nothing will change with your card.

Liam Kelly
Liam Kelly

It is very clear. You are opted out of being required to use arbitration instead of the courts.

The law allows you to opt out of arbitration. No one can retaliate against you for it.

fjordlander
fjordlander

I hope you’re right. Chase CSRs seem to have no fucking idea and give answers all over the place.

Ben
Ben

Chase’s Twitter account answers this and the “will you close my account” questions: https://twitter.com/ChaseSupport/status/1135961244760977409

Harry Nguyen
Harry Nguyen

Does the my chase plan only work for loans or credit card as financing like the amazon credit card? Thanks

Ann
Ann

It gives you a loan inside your credit card account. https://www.paymentsjournal.com/installment-lending-chase-takes-credit-cards/

akjohnny
akjohnny

i just got email about changes for a Disney visa I already closed with them a month ago…

Ann
Ann

Explanation of the name change, from FicoForums:

“They collapsed an internal unit/entity (Chase USA – aka Chase Card Services) to the top of the house (JPMorganChase Bank – f/k/a JPMCB Card Services). Chase USA had the remnants of the First USA/BankOne previous legacies.”

Pepe
Pepe

The question then is: is it better to reject it or not?
I’ve several cards from Chase and only got this email for my newest account. They mentioned also a change on APR as someone mentioned before.

Matthew H
Matthew H

I reject binding arbitration agreements at banks all the time and have never had an issue with it. I’d be curious to see more data points on doing it with credit cards since they tend to be happier to close accounts for no reason.

anthony
anthony

So what are the benefits of opting out of arbitration?

Matt
Matt

You preserve your rights. Unknown if Chase will close your account for doing so, however.

Troy
Troy

Then you (and with others….e.g. Class Action) could potentially demonstrate justification for a claim of retaliation. Sounds like its time for the public to gather together and CLEARLY REMIND Chase who the customer is here. This could provide an avenue for up and coming points player (like CapitalOne) to garner massive market share with people fed up with Chase and its BS (arbitration, 5/24, etc….)

Half Cack
Half Cack

In the US as to my understanding, it is impossible to give up your rights under any circumstances. ?

Anonymous Mole
Anonymous Mole

The date is August 7th now, send it in by August 6th.

Nicholas
Nicholas

I called Chase just now. The CSR confidently informed me that rejecting the Binding Arbitration clause will NOT close the account. I said to her jokingly “I dont want to give up my rights, but I also dont want to have all 7 of my accounts closed.” Her response was “we dont want that (closing accounts/losing customers) either.” Might call again a few more times to get some more DPs.

Terry
Terry

Sounds like we will have to pay $35- a year for the J.P Morgan Chase Amazon Card. Did we currently pay an annual fee already or is that part or separate of the Amazon Prime annual fee? I can’t remember…

Ann
Ann

Huh? There has never been an annual fee for an Amazon credit card. You get 5% back on Amazon if you are a Prime member, 3% back if you are not a Prime member.

I think you are completely misunderstanding the line about $35 in the image above – it is saying that **the Minimum Payment amount** on each month’s bill will be no smaller than $35 now, when before, their calculations would sometimes end up making it smaller than that. That Minimum Payment amount just happens to be stated in a part of the documentation entitled “Cardmember Agreement Rates and Fees Table”.

Ann
Ann

New free service set up by a competing bank to make it easy to send in Chase opt-out letters: https://www.chaseoptout.com/

Half Cack
Half Cack

I was kidnapped, not literally, by the most brilliant scammer of all time. I am being held hostage, made to turn over all high value accounts I have. Scammer then maxed out cards knowing I couldn’t pay. I can not say one word to anyone about anything. I can not sue in small claims, he is paying payments, a certain loss for me. With the first card he got, I took a legal chance and paid the Amex account off in full. Legal, because I made him account manager. One does not have the other knowing anything he does. Six Amex reps assured me that the electronic cash transfer was safe. Account pain in full. Then NBT took the money back. I could not afford the payments on 7000$ much more the 88,000$ due now. I have to opt out. I never had any wins in arbitration. The card owns the bank, the arbiters work for Amex. My reason for opting out, he has lost his mind, I had a card issued in his name and never used mine again on each account. I need to be in criminal court. He made the mistake of my kindness as a sign of weakness. Not even going into the book of add on’s, he is my accountant, tax lawyer, tax preparer, owns two Block Advisor locations, had all my identity information, “best friend” and chose a move he got caught for, 600,000$ stolen from the IRS. 17 years ago, his father and partner, took the blame, went to Fed prison for him. He did not learn his lesson. To opt out means real court, real crime and real time. For me, it’s not to sue the cc companies or join a class action suite. It’s to get him to crimsoned court. List, not including add on’s, elder abuse, kidnapping, not physical but just the same, holding me a hostage for over a year by maxing out all cards he has but I had the sense to make him an additional user, all charges and payment in his name, credit card fraud, no ability to pay, extortion, fraud, recording calls where it is legal for me in my state, a state and fed felony in his, etc. This is the first public outing of this situation. Amex is the culprit. All was finished and done, account fully paid off. Then for some unknown… Read more »

Half Cack
Half Cack

I tried to correct the spelling and grammatical errors but it would not let me. Sorry to those who have to read through.

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