How They Rig The Credit Card Game

Eventually, Chase charged Wannemacher $4,900 in interest, $1,100 in late fees, and $1,500 in over-limit fees. He was hit 47 times with over-limit fees, although he only went over his limit three times. After making $6,300 in payments since 2001, he still owed $4,400 as of last month.

Just before the hearing in which Wannemacher was to testify, Chase decided to forgive his remaining $4,400 in debt. Why did it take so long for someone at the company to see that the methods that resulted in the charges and fees imposed on his account were abusive?

"We blew it," testified Richard J. Srednicki, chief executive of Chase's card services division. "Our policies and procedures failed and we deeply regret it."

It's great that Wannemacher's remaining debt is going to be wiped away. But what about other consumers who have been similarly overcharged? Will Chase -- and other issuers -- also wipe out the excessive fees imposed on other customers?

"We look at any situation in which we have made a mistake," said Paul Hartwick, a spokesman for Chase. "We think that we are pretty fair and responsible in the way we deal with our customers."

Some credit issuers say they are ready to change some of the practices that have been criticized. Citigroup has announced it will get rid of its universal default practice. Chase Card Services has promised to eliminate excessive over-limit fees. The company will stop over-limit fees at 90 days.

These changes are good but they're not enough. Part of the problem is that far too many consumers won't be able to play the credit game wisely because the rules are so convoluted. In a report released last year, the Government Accountability Office found that while millions of consumers use credit cards, many are confused by their own credit card agreements.

"I don't believe that the average consumer understands it, believes it, thinks it's fair, and I don't either," said Sen. Carl M. Levin (D-Mich.), chairman of the Senate permanent subcommittee on investigations.

Granted, Wannemacher should have paid his bill and should not have gone over his limit. Clearly, as he even admitted, he wasn't prepared to handle the downside of the credit game. "Debt seems to invoke a feeling of hopelessness unlike any other problem I've encountered," Wannemacher told the Senate panel.

Just as with tag, if playing the game means you have to subject yourself to unfair and excessive treatment, it's time to stop playing.

· On the air: Michelle Singletary discusses personal finance Tuesdays on NPR's "Day to Day" program and online athttp://www.npr.org.

· By mail: Readers can write to her at The Washington Post, 1150 15th St. NW, Washington, D.C. 20071.

· By e-mail:singletarym@washpost.com.

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