Home Madrid Economy Chase Bank to restrict cash payments on credit cards and loans after restricting cash deposits a year ago: Money Matters

Chase Bank to restrict cash payments on credit cards and loans after restricting cash deposits a year ago: Money Matters


Q: I was at Chase recently and paid my credit card bill in cash. No problem. Then I attempted to pay my wife’s credit card bill and was declined. They said Chase’s policy is now that only people whose names are listed on a consumer account are allowed to make payments. It’s absurd !

How can a bank decline a payment that is about to be made in US currency? I believe that no one can refuse payment of an invoice when it is denominated in legal tender. Other than that, if I try to pay a relative’s bill, for whatever reason, if it’s not pre-authorized, will it be denied?

What is the reasoning behind this?

Washington, Middleburg Heights

A: Overview: The problem wasn’t that you tried to pay your wife’s credit card bill. It’s that you tried to use cash.

Hunt a year ago changed its cash deposit acceptance policy in a checking or savings account of a person who is not the owner or authorized user of an account. This therefore applies if you want to make a cash deposit to a checking account belonging to a relative or friend who may need the money as soon as possible. So, for a year, to deposit cash into a consumer account, people must be either the owner of the account or an authorized user on the account and provide identification. This policy does not affect commercial, cash or investment bank accounts.

Now Chase is expanding its policy to apply to restricting cash payments on credit cards, mortgages, auto loans and safe deposit boxes.

The new policy is rolling out in March in select Chase markets, including Greater Cleveland, spokesman Jeff Lyttle said. It is not yet in force anywhere. So you shouldn’t have been banned from making this payment yet.

The bank has changed cash deposits to combat possible misuse of accounts, including money laundering.

Although there was confusion as to when this new policy took effect, you could have successfully made the payment to your wife’s credit card account if you had paid by check.

This policy is unusual but, since Chase is the largest bank in the country, I wouldn’t be surprised if we started to see more of it in this age of sensitivity to financing terrorists and other illegal causes.

Q: My bank (PNC) has been trying to convince me to get a debit card for a long time. I took your items to the bank and they finally stopped pressuring me.

However, the bank charges me a $10 per year fee for my ATM card. If I had a debit card it would be free. I understand why they charge me a fee, but I also think they are discriminating against me by charging me this fee.

What do you think?

HH, Ashland

A: This is a policy that PNC has had for several years, and it is not the only local bank that charges customers who want an ATM card instead of a debit card. KeyCorp and FirstMerit are others who charge a nominal monthly fee for the “privilege” of having an ATM card instead of the debit card they like to shove down your throat.

I doubt PNC’s 83 cents per month fee will break you or be a boon to the sixth largest bank in the country. It’s meant to tick you off enough to persuade you to just accept the debit card and be done with it. The hope is that you can then use that debit card from time to time, which generates revenue for the bank through merchant interchange fees.

Key and FirstMerit fees are in the same range – around $1 per month. Again, not an onerous amount, but just a deterrent.

I think the fees are stupid, insulting and unfriendly, but they are not discriminatory. If these fees bother you enough, you should shop around for a new bank that doesn’t charge these fees. Of course, the new bank might have other fees that you don’t like. You just need to decide what is important to you.

Q: Maybe your banking experience could help me in a bad situation.

I made a purchase with a Bank of America credit card that I rarely use, then forgot about it. The purchase was around $250. About seven months after this purchase, I received a letter from BofA requesting payment for the purchase. I had received no communication from BofA prior to receipt of this letter, and they had canceled the account several months earlier.

I called to let BofA know that I would be making a payment with interest to close the case, but because BofA had never contacted me (even though they confirmed they had my phone number and email address). -mail). I said it was unreasonable to pay the full accrued interest and penalties. My recollection is that I paid $500 for the $250 purchase.

Recently, I found out that BofA reported it to the credit bureaus, which significantly reduced my credit rating from excellent to good.

I’m in the process of applying for a new home loan, so this downgraded credit rating is hurting me. The BofA account balance is $150. Is it better to pay and move on, or is there a way to clean up my credit score without postponing payment? Is there a watchdog agency I should report BofA actions to?

LC, put away

A: I find it odd that you haven’t received a letter or a phone call about a month, two or three month overdue payment. But stranger things happened.

Of course, not receiving an invoice does not eliminate our responsibility to pay an invoice when we have every reason to expect it. You admit having messed up by forgetting your purchase.

That said, it would certainly have made your life easier if you had remembered this purchase after only a month or two, or if BofA had reached you much sooner.

Even with the letter after seven months, I would have urged you to try to negotiate a lesser amount – assuming you had been a good customer for several years.

If that didn’t work out, you should have at least been able to negotiate keeping that off your credit report if you paid the full amount owed, including late fees and interest. (If you had this conversation with BofA, you obviously should have gotten the name of the person you spoke with for your records.)

Looks like that didn’t happen. I don’t know why you paid $500 but not the full $650 if that’s what was owed. (But boy, that sounds like a ton of late fees.)

If you didn’t pay the full amount requested by BofA at the time and the charges were legitimate, that wasn’t smart. You probably could have kept that off your credit report if you had paid the full $650.

I see no way for you to improve your credit rating without paying that extra amount owed. If I were you, I would contact you by telephone and I would have the conversation that you should have had the first time: admit that it is an oversight. You are a long-time customer with a good payment history. You will pay what is due. Can BofA remove this late payment from your credit file?

It would be better to get it in writing. At least get the name of the person you’re talking to. You’ll probably have to upgrade to a supervisor level anyway.

If you choose not to pay the remaining $150, your life could get worse. A charge (a payment never made) is much worse than a payment 90 days past due. This will continue to plague you for years and will cost you much more than $150 as you will be hit with higher interest rates.

You can certainly file a complaint with the Consumer Financial Protection Bureau. Call 855-411-2372 or go to: www.consumerfinance.gov/complaint.

Additionally, I recommend signing up for text or email alerts for any credit card accounts you have. You can still receive paper invoices by post if you wish. But you would also have a safety net if an invoice gets lost or you forget it. Most credit card companies offer to send email alerts when you have a new bill and also seven days before your payment is due, in case you forgot.

Murray is the personal finance editor of The Plain Dealer. Due to the volume of requests, she cannot help everyone who contacts her.

To join: [email protected]
On Facebook: MurrayMoneyMatters
On Twitter: @teresamurrayPrevious columns in line: cleveland.com/moneymatters