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  • Chase Announces Clear and Simple Initiative to Simplify Credit Card Use

    Chase Expanding Its Progressive Roster of Customer-Friendly Tools

    WILMINGTON, Del., Mar 05, 2007 (BUSINESS WIRE)

    Today, Chase Card Services announced a new Clear and Simple Initiative, which will make it even easier for Chase cardmembers to better understand and manage their accounts. These customer-centric programs tools, information and services are intended to help Chase's millions of cardmembers continue to enjoy a positive relationship with Chase Card Services while maximizing the benefits of their credit card.

    "Through extensive research, we listened to what consumers had to say, and more than one in five tell us that when choosing a new credit card, easy-to-understand terms and rules was a very important selection criteria for them," said Carter Franke, marketing executive, JP Morgan Chase. "More than half of consumers also believe that a credit card company should be proactive in contacting them with advice if they make late payments, exceed their credit limits or exhibit other behavior that could get them into financial difficulty."

    "The Clear and Simple Initiative will help our cardmembers maintain healthy credit, learn the benefits of responsible credit use and avoid fees. This is good for our customers and good for us," said Carter Franke, chief marketing officer, Chase Card Services. "Chase customers are already among the most responsible and knowledgeable credit users in the country and we provide them with great value in the form of low rates and rewards. Still, we want to give our customers enhanced tools to be even smarter users of credit."

    As part of its ongoing focus on providing the best products and services to its customers, Chase Card Services will be announcing a series of consumer-friendly actions in the coming months.

    "We want to build long-term relationships with all of our customers," said Franke. "We continually review our practices and policies and make adjustments to improve their value."

    The Clear and Simple Initiative is organized around three central themes that guide Chase's programs and policies.

  • Tools to Empower Customers:

    • Chase offers many tools designed to help cardmembers pay on time, specifically through automatic payments and "free alerts." Chase soon will take an additional step by offering customers a cash incentive for signing up for automatic payments, "free alerts" and paperless statements. This promotion is intended to help customers stay up-to-date with their account and avoid late and over-the-limit fees and preserve their low interest rates.

    • Chase's "free alerts" provide cardmembers with quick and convenient reminders about important account information, such as upcoming payment due dates. These alerts are sent by phone, text message or e-mail.

    • Beginning this week, Chase will expand its program of proactively contacting customers who appear to be experiencing financial difficulty and recommending options to address their needs.

    • Chase will soon implement online "payment calculators" to help customers understand how their payments impact their account balances over time. Chase already sponsors "MyMoneyManagement.net," a comprehensive Web site that offers consumers a variety of tools - including financial calculators - to help them manage their credit. Chase is also exploring ways to make minimum payment calculations available by phone.

    • Chase will continue to offer its customers the ability to choose the payment date that best meets their financial schedule. Cardmembers can select their payment dates online and by phone.

  • Financial Literacy and Education:

    • Chase's ongoing support of financial literacy was expanded just last week as Chase announced a $3.9 million grant program for local credit counseling organizations across the United States.

    • In the coming months, Chase will enhance its programs focused on teaching its cardmembers about the importance of responsible financial behavior. These education initiatives, crafted with input from various groups, will be distributed online, through podcasts, chat rooms and in print.

    • Chase has developed specific programs to address the needs of students to complement Chase's already robust and relevant financial literacy programs.

  • Clearer Disclosure of Terms and Conditions:

    • Over the last few months, Chase has provided easy-to-understand supplemental information to all customers to help them better understand how to manage their account to avoid fees and preserve their best interest rate. By the end of the second quarter, Chase will have mailed this information to more than 30 million customers. Chase tailors its pricing to its individual customers, and among the major issuers offers some of the lowest effective annual percentage rates in the industry.

    • Chase is aggressively researching additional ways to make credit card disclosures clearer to consumers so they better understand the terms and conditions of their accounts. Chase plans to announce recommendations in the near future.

    • In an industry-leading step, Chase is reaching out to consumer advocacy groups, think tanks and academics for their input to develop sound policies and programs that will help customers understand how to be responsible users of credit.

    • Chase is working with the Federal Reserve to establish best practices for disclosure.

    "Chase has always had policies and procedures designed to provide the best products and services to our customers," Franke said. "The Clear and Simple Initiative is just another example of how Chase is constantly evaluating our approaches to increase value for our customers."

    About Chase

    Chase is the U.S. consumer and commercial banking brand of JPMorgan Chase & Co. (NYSE: JPM). Chase has 154 million credit cards issued and serves consumers and small businesses through more than 3,000 bank branches, 8,500 ATMs and 280 mortgage offices as well as through relationships with 15,000 auto dealerships and 4,300 schools and universities. It also serves more than 30,000 commercial banking clients, including corporations, municipalities, financial institutions and not-for-profit entities. More information about Chase is available at www.chase.com.

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