Home equity robbery
Sorry, I stole the title from this chase-sucks.com post because I couldn’t think of a more appropriate one.
Basically, the story is that a Chase customer has a loan to which they decide to start making extra principal payments to, and do so according to the procedure set by Chase. But instead of applying the payments to principal, which would reduce the loan balance, Chase decides that the extra money is to pay interest payments ahead of schedule.
It’s official, Chase has no morals.
Bad bad Chase | admin April 25, 2010
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By none, April 28, 2010 @ 9:43 pm
It’s not paying future interest, it’s paying accrued interest. In all reality, it is a legit practice that all banks apply payments. The difference is that most allow you to only apply the additional toward the principle by having a line on the payment slip indicating the “extra principle.” Because Chase is taking away humans from their workforce, they are not able to take additional principle through the mail. However what you can do is mail the minimum interest only payment through the mail and then walk into a branch and make an additional principle payment…It is possible.