Chase Card Services sent out an Electronic Service Request (a change of service) for my Chase Prime Visa Card.
They offer a ‘service’ whereby I can “pay over time” a balance due for just 1.72% for the amount I wish.They say it is not interest but a FEE. A percentage due on a balance IS interest, but by calling it a FEE I believe they can bypass usury conditions. It does appear as though the ‘fee’ is fixed and not variable, but it still sounds like interest to me.
I found details about the Chase “Pay over time” plan on Nerd Wallet. The key statement in the article is “The fixed monthly fee can become more expensive than interest as the balance on your plan gets lower over time.” As a minimum credit card issuers should have to up front provide the consumer with information on how expensive the plan will be compared to paying monthly interest on the purchase.
They count on customers not being able to math…. 1.72% per month sounds great, right? That’s like 25% APR (and you are correct, they call it a fee because that interest rate would be illegal many places)