Consumer Alert: For Wamu Mortgage Holders
This is a heads up for those of you who may have a mortgage with Washington Mutual. Those mortgages are in the process of transition to Chase. I accidentally found this issue, and there was no warning from either Wamu or Chase. I discovered by checking my mortgage online that the payment date of my mortgage had been changed from the 6th of the month to the 1st of the month.
Since my mortgage is paid automatically from my account, this is a big deal. Since I get paid between the 1st and the 4th of the month depending on weekends and holidays, it is entirely possible that the automatic payment of my mortgage could overdraw my account. If this date change also effects people who mail in their payments, then if you are not paying attention, you could potentially be late on your payment. I attempted to talk to Chase about this (good luck trying to figure out how to get to their mortgage folks - try this number 1-800-848-9136). I was informed that they could not find my mortgage in their system, but I should not worry about the date change.
When I asked what would happen on 6/1, the representative said "I don't know." I asked what would happen if the automatic payment of the mortgage from my account overdrew my account. She said "I wouldn't worry." I asked if I would be charged an over draft fee, and she said "I don't think so." I asked, Why wouldn't I be charged and overdraft fee, Her response, "I don't know."
So I tried a different approach. I asked her WHO would get the mortgage payment on 6/1. Get this "I don't know."
Failing there, I tried my Wamu branch again. (I had originally asked there and they sent me to Chase). The tried to find my mortgage. They couldn't find it either. After explaining the situation, the branch Rep said she would try to find out and call me back. I am still waiting.
I figure a lot of folks could get their tails caught in a ringer on this one. Late fees, overdraft fees, and the various consequences thereof.
Another possible complication. I also have an Amazon credit card - which is issued through Chase. Guess what. It is now showing up on my BANKING accounts. Since all of that is in the same system now, there is a potential for folks who have mortgages and credit accounts with Chase that a late mortgage payment could directly result in a change to your credit card interest. Realistically, that rate hike could happen with non-Chase accounts.
I will update this when and if I get any further information.
Since my mortgage is paid automatically from my account, this is a big deal. Since I get paid between the 1st and the 4th of the month depending on weekends and holidays, it is entirely possible that the automatic payment of my mortgage could overdraw my account. If this date change also effects people who mail in their payments, then if you are not paying attention, you could potentially be late on your payment. I attempted to talk to Chase about this (good luck trying to figure out how to get to their mortgage folks - try this number 1-800-848-9136). I was informed that they could not find my mortgage in their system, but I should not worry about the date change.
When I asked what would happen on 6/1, the representative said "I don't know." I asked what would happen if the automatic payment of the mortgage from my account overdrew my account. She said "I wouldn't worry." I asked if I would be charged an over draft fee, and she said "I don't think so." I asked, Why wouldn't I be charged and overdraft fee, Her response, "I don't know."
So I tried a different approach. I asked her WHO would get the mortgage payment on 6/1. Get this "I don't know."
Failing there, I tried my Wamu branch again. (I had originally asked there and they sent me to Chase). The tried to find my mortgage. They couldn't find it either. After explaining the situation, the branch Rep said she would try to find out and call me back. I am still waiting.
I figure a lot of folks could get their tails caught in a ringer on this one. Late fees, overdraft fees, and the various consequences thereof.
Another possible complication. I also have an Amazon credit card - which is issued through Chase. Guess what. It is now showing up on my BANKING accounts. Since all of that is in the same system now, there is a potential for folks who have mortgages and credit accounts with Chase that a late mortgage payment could directly result in a change to your credit card interest. Realistically, that rate hike could happen with non-Chase accounts.
I will update this when and if I get any further information.
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THE POWERS THAT BE!!! Well, but we had a contract!!!
It said we could do anything we damned well wanted to all on page 3, Section 4A, First Paragraph. And now the government is supposed to step in.
Socialism. THE ONLY WAY TO FLY!!!
May 29, 2009 3:39 PM | Reply | Permalink
Oh DD, don't get me going. When Chase bought out Wamu's mortgages for like 15 cents on the dollar, my blood pressure went over the moon. H E double toothpicks I would have paid them 20 cents. Why weren't those of us owning on those mortgages offered that deal!!!!!
Socialism, I just wish.
May 29, 2009 3:50 PM | Reply | Permalink
fiddle faddle. I am all discombobulated.
Should have been "owing" not "owning"
May 29, 2009 3:52 PM | Reply | Permalink
I haz Wachovia, but I'll look out for a similar deal
Keep in mind, the banks are posting healthy profits
Bastards.
May 29, 2009 9:00 PM | Reply | Permalink
The owners of the credit cards are thus connected, yet isolated from one another by time and space, and subject to usury both collectively and individually by a banker on a computer in the bank tower who remains unseen.
Should we all stop paying at once?
May 30, 2009 4:52 AM | Reply | Permalink
Now that would be an interesting piece of resistance. Good idea strato.
May 30, 2009 9:33 AM | Reply | Permalink
stratofrog: I absolutely agree. What firgure has the stature to organize such a campaign? And how quickly will he/she be put in jail for helping people "break a contract"?
I do think this is the wave of the future for an enterprising young activist. Medical Costs thru Insurers and Hospitals should also be stopped until Single-Payer is at the table, and/or wins the day.
May 30, 2009 12:41 PM | Reply | Permalink
This is an excellent post! And it proves how the consumer has no protections!
Here's what I'd recommend. Phone them again. Find a way to record the entire conversation. Keep that - because it's your only proof when they overdraw the account and try to assess an overdraft fee.
This is simply reprehensible! If I knew a way to help, I'd do so! This really has me steamed on your behalf! You're trying to be a responsible person. And they're tying you in knots!
Thanks for this! At a minimum you at least have a mortgage with a known entity!
My advice. Pay this off as fast as you can! (if you can....)
May 30, 2009 9:59 AM | Reply | Permalink
Remember that you should, depending on state law, notify the other party that the call is recorded. Broadly you can simply rely on the bank's own notification that they may record the call, but there are likely to be a couple states in which this is not acceptable.
May 30, 2009 11:02 AM | Reply | Permalink
Thanks for the advice. My reason for posting this is that it truly is a heads up. My guess is this is happening A LOT and folks are going to get caught in it. There was no notification about this except for repeated assurances of a smooth transition from WAMU to Chase and that everything would stay the same. HA as DD would say.
Being a cynic, I have tried to keep an eye on what was going on with my accounts and most of it has been opaque until this week. This week they started the transition from WAMU's online access to Chase's. So now we are getting the "big reveal" and I must say that the mortgage change and the merging of my bank accounts with a spurious credit card account surprised me (unpleasantly).
I'll wrangle this out with them, but my guess is that a number of folks are going to have charges showing up not knowing what the heck happened. If they are like many, they don't carefully check their accounts, and they may end up "late" or "short" for a while until they get some much more serious notice. By then, it will be very difficult for them to straighten out. Potentially, "banks" could pocket a lot of big buck out of this little "switch" in terms - and similar little "oversights".
May 30, 2009 11:56 AM | Reply | Permalink
The fact that the Amazon card showed up should not be a surprise.
Since it is issued by Chase, it is really a Chase credit card carrying an Amazon brand. The same would be true for the Continental Airlines card and many others. Chase, CitiGroup, BofA and US Bank have brand deals with hundreds or thousands of organizations ranging business to clubs, alumni associations, etc. Typically the organization makes some money off the branding deal, e.g. a share in the fees, in return for selling the card, but the terms and conditions are really set by the banks.
May 30, 2009 12:20 PM | Reply | Permalink
Yeah, I knew that the Amazon card was through Chase. I was just surprised to see it pop up with my bank accounts.
May 30, 2009 8:01 PM | Reply | Permalink
Maybe you could find a local Chase Mortgage office by plugging your zip into this search page.
http://mortgage.chase.com/pages/other/lo_search.jsp
May 30, 2009 12:09 PM | Reply | Permalink
The only thing for us left to do, is end our borrowing relationship with Chase, and all other usurious banks.
Keep the mortgage, but kill all other credit lines and pay off all debt. This is the only way not to get screwed by CC Companies.
May 30, 2009 12:31 PM | Reply | Permalink
We have a Chase mortgage as well as Amazon\Chase credit cards. They are seperate accounts and one does not affect the other.
Chase has a generous grace period on mortgage payments. I have taken advantage of it a time or two. You should be able to change your automatic payment date to fit your payday and not incur any late charges.
I looked at my mortgage statement. It is due on the 1st and I have 15 days grace before it's considered late.
It IS a pain in the rear to get ahold of a live person at any mortgage company and Chase is no different on that point! :-(
May 30, 2009 1:32 PM | Reply | Permalink
I imagine they are not different than other big banks. What I had problems with was their changing the date without notification. I don't get a monthly bill from them, nor do I have a payment book. According to the teller I originally spoke with at the branch, she intimated she had heard this had happened to "some people." Grace period or not, I assume that they will attempt to withdraw the payment on the "due date." I imagine that ultimately the account will get "some where" where I can talk to someone. Apparently that is not the case now.
May 30, 2009 8:08 PM | Reply | Permalink