Hey there, Steve here—and if you’re holding a fancy Chase card with travel perks or big rewards, don’t swipe again until we decode the legalese. This isn’t just about points. This is about protecting your wallet from traps that could drain it dry.
Let’s break down the agreement (form COL00094) like a friend would—one who’s seen behind the curtain of every card trick in the book.
🧾 Quick Summary
Issuer: JPMorgan Chase Bank, N.A.
Card Type: Premium travel/rewards card
Form Identifier: COL00094
Fees: Up to $550 annually, and up to $75 for authorized users
Intended Use: Day-to-day purchases, My Chase Loan, Chase Pay Over Time, sometimes balance transfers
⚖️ Legal vs. Plain English Chart
| Legal Term | Plain English Translation |
|---|---|
| Purchase APR | 19.24%–28.49%, based on Prime Rate (currently 7.5%) |
| Balance Transfer APR | Same as purchase APR, if allowed |
| Cash Advance APR | 29.24% with no grace period ❌ |
| Penalty APR | Up to 29.99% if you pay late or bounce a payment 🔥 |
| Grace Period | At least 21 days to pay without interest—on purchases only |
| Minimum Payment | $40 or 1% of balance + interest and fees, whichever is higher |
| Payment Allocation | Minimum pays off lowest-interest balances first; extra goes to highest |
| Late Payment Fee | Up to $40 ⚠️ |
| Returned Payment Fee | Up to $40 ⚠️ |
| Rewards Forfeiture | Yes—miss payments or close the account and you could lose everything 🔥 |
| Arbitration Clause | Yes—unless you opt out in writing within 60 days ❌ |
| Inactivity/Closure | Chase can shut your account down at any time |
| Dispute Process | Must write to Chase to trigger legal protection—calling won’t cut it ⚠️ |
🚨 Red Flag Roundup
❌ Mandatory arbitration (class actions banned unless you opt out)
🔥 Penalty APR sticks even after you fix the issue unless you make 6 on-time payments in a row
⚠️ Cash-like purchases (crypto, lottery, wire transfers) trigger instant interest and fees
🔥 Chase can close your account and take your points if you slip up
❌ “We can change this agreement anytime” means rates, perks, or even credit limits can shift
🧪 What If…? Real-Life Scenarios
😬 What if you miss one $25 payment?
You could be hit with a $40 late fee and watch your interest rate jump to 29.99%. That higher rate might last forever.
🏧 What if you take a $100 cash advance?
You’ll owe $10 right away in fees, and interest starts that same day. You’ll pay more in fees than interest unless you pay off fast.
💤 What if you don’t use the card for 6 months?
Chase can shut down your account without notice, and your rewards? Gone.
Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.
🔁 What if you only pay the minimum for a few months?
You’ll barely make a dent in your balance while interest piles up. And if you’re enrolled in a Chase Pay Over Time plan, those fees don’t go away just because you stop using the card.
💰 Rewards Risk Section
You don’t truly own your points. Chase can take them away if:
- You’re late on payments
- Your account is closed (by you or by Chase)
- You default or enroll in a hardship program
Chase Pay Over Time and My Chase Loan balances don’t earn rewards. Some “eligible purchases” are excluded, like cash advances or gambling-related transactions.
Minimum redemptions, blackout dates, or restrictions may apply depending on your specific reward program.
🟡 Consumer-Friendliness Score: Use With Caution
This card offers premium perks—but behind the velvet rope are stiff fees, interest traps, and rules that can change. The arbitration clause and rewards forfeiture risk make this a card you should handle with care.
🛟 Cardholder Survival Plan
If you’re struggling to pay:
- Call Chase ASAP and ask about hardship programs
- Always pay at least the minimum—avoids default and massive damage
- Document everything in writing to trigger Fair Credit Billing Act protections
- Monitor your credit using free tools like Credit Karma
- Avoid cash advances unless it’s a dire emergency
- If it spirals? Learn about your legal rights. Consider talking to someone like Damon Day for a real plan
📌 What to Look for in a Better Card
✅ 21+ day grace period
✅ No penalty APR
✅ Low or no fees
✅ Rewards you actually control
✅ Helpful, transparent customer service
✅ Clear rules for interest and payments
✅ No forced arbitration
✅ Verified Facts Table – Chase Agreement COL00094
| Key Term | Plain English Summary | Page(s) |
|---|---|---|
| Purchase APR | 19.24% to 28.49% (variable, tied to Prime Rate) | p. 1 |
| Balance Transfer APR | Same as purchase APR if available (not always allowed) | p. 1 |
| Cash Advance APR | 29.24%, starts immediately—no grace period | p. 1 |
| Penalty APR | Up to 29.99%, applies after late or returned payment; may remain indefinitely | pp. 1, 9 |
| Grace Period | At least 21 days on purchases only, if full balance is paid | pp. 1, 8 |
| Minimum Payment | $40 or 1% of balance + fees/interest; varies by usage | p. 1 |
| Payment Allocation | First to Chase Pay Over Time obligations, then lowest APR; excess to highest APR | p. 9 |
| Late Payment Fee | Up to $40 | p. 1 |
| Returned Payment Fee | Up to $40 | p. 1 |
| Annual Fee | Ranges from $0 to $550, up to $75 per authorized user | p. 1 |
| Foreign Transaction Fee | 0% to 3% depending on card version | p. 1 |
| Cash-like Transactions | Crypto, gambling, wire transfers, etc. treated as cash advances | p. 3 |
| Flexible Financing (Chase Pay Over Time) | Fixed monthly fee or APR; excluded from grace period interest protection | pp. 5–6 |
| My Chase Loan | Converts credit line into a structured loan with same APR as purchases | pp. 5–6 |
| Rewards Forfeiture Clause | Points can be lost for default, closure, or inactivity | pp. 4, 7 |
| Dispute Process | Must write to dispute charges and trigger legal protections | pp. 11–12 |
| Arbitration Clause | All disputes handled via binding arbitration unless rejected within 60 days | pp. 13–16 |
| Military Lending Act Protections | Active-duty servicemembers not bound by arbitration; max APR = 36% | pp. 2, 13 |
| Account Closure | Chase may close or suspend your account for any reason | p. 4 |
| Inactivity Policy | No specific time period given, but closure for inactivity is allowed | p. 4 |
| Billing Method | Daily balance method (including new transactions) | p. 10 |
