WTF?? Chase Cancelled ALL My Cards Today!!

secret traveler

secret traveler

Level 2 Member
Well - I woke up this morning and like I typically do I review my cards balances, points, etc. and much to my shock I saw that ALL my Chase cards were cancelled. Yep - All!! No warning, no email - nothing! CSP, Hyatt, United, IHG - poof - gone! I couldn't believe it. After I got over the shock I called Chase and asked them WHY??? They gave me some lame excuse about total credit limits, credit usage, etc. I had never abused the cards, always diversified and paid on time. They said they were sorry but there was nothing they can do to re-instate it. The bank had made the decision to close it. I had just gotten the Hyatt card and luckily had gotten the bonus 2 free nights added to my account before they closed it.

The guy I spoke to at Chase felt bad for me and gave me 5,000 UR points for compensation. He said I need to move all my UR points to the affiliate partners in the next 90 days. This sucks big time.

Anyone else out there that this has happened to??
 
FlyingExplorer

FlyingExplorer

Travel, Tastes, & Tennis
secret traveler, sorry about that.

It sounds like they closed them because of your usage with them - whether justified or not. Your usage doesn't sound like abuse to me, but apparently they saw a credit risk sicne they quote credit limit and usage. For the benefit of the rest of us, would you mind sharing some more details about your usage? For example:
Number of personal cards, number of business cards, total credit limit, maximum credit used at any one point in time, total, total spend put on your cards per year or month. Rough ranges would be sufficient.
 
secret traveler

secret traveler

Level 2 Member
The cards were Chase Sapphire, IHG, Hyatt and United Explorer. All the cards were personal. The Sapphire card was my go to card with $6500 CL. The other cards had very low CLs. The Sapphire card I would occasionally go 2X CL. So you see I didn't really abuse them.
 
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PNW-MSSER

Level 2 Member
secret traveler said:
The cards were Chase Sapphire, IHG, Hyatt and United Explorer. All the cards were personal. The Sapphire card was my go to card with $6500 CL. The other cards had very low CLs. The Sapphire card I would occasionally go 2X CL. So you see I didn't really abuse them.
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Sorry for your loss, Chase does not appreciate CL recycling and is pretty brutal in its actions and blacklisting. I would bet my money it was the 2x CL.
 
S

swazzie

Level 2 Member
Did the 2x CL (or monthly spend on all Chase CCs) exceed your monthly income? I wonder if that was a factor as well.
 
S

swazzie

Level 2 Member
Thanks for the info, @secret traveler. I regularly exceed the CL on my Freedom during a statement cycle due to loading Serve and meeting 5x spend. The original limit was 1.5K but recently got raised to 2.5K at my request so hopefully exceeding the CL is a thing of the past. I have several other personal Chase cards, too, which I don't exceed the CL on. However, that spend hasn't exceeded my monthly income, hence the question. Regardless, your story shows that we should never take this game for granted--it can turn on a dime.

I'm also sorry for the loss of your accounts and wish you the best going forward.
 
M

MilesJunkie

Level 1.66 Member
Wow. Really sorry for the closures!

How many other credit card accounts did you have that weren't with Chase? How many in 6 months? Year?

Could it be Chase doesn't like too many credit card accounts overall? Just thinking.

Again, sorry for the loss of your accounts. Feels like a kick to the gut.
 
InstinctX

InstinctX

Level 2 Member
I'm also sorry to hear about your loss of accounts. Pure speculation, I think this may be a proactive move by Chase and we may see other issuers following suit ... with the likelihood of interest rates rising soon, "transactors" (those who pay off their balances) will become less profitable, and the credit card divisions will rely on borrowers to grow their revenues & keep Wall Street happy.

Code: 
http://repubhub.icopyright.net/freePost.act?tag=3.7343?icx_id=1071929&urs=REPUBHUB&urt=
...improvements in the U.S. economy may soon change the calculus for card issuers. When interest rates rise, which many observers expect to happen in mid-2015, it will become more costly for the card companies to float short-term, interest-free loans to those customers who pay off their entire bills each month. Those customers, who are known as transactors and use their credit cards to accumulate rewards, have been the focus of intense competition among the card companies in recent years.

"I think rising rates could drive more attention to borrowers rather than transactors," said Christopher Donat, an analyst at Sandler O'Neill.

Higher interest rates are also likely to make lending more profitable, since the card companies are expected to hike the rates they charge to consumers by a larger margin than the rise in their cost of funds."
​
JPM Card division didn't have a good 4th quarter...
The poor results were largely due to a fall in net revenue along with an increase in provisions for credit losses. Considering the fall in revenue and an increase in expenses, it isn’t a good situation.

The CCB segment reported net revenue of $10.9 billion—a decrease of nearly 4% from the same quarter last year. Provisions for credit losses rose sharply from $72 million in 4Q13 to $950 million this year. This led to a net income of $2.2 billion. This was a sharp decline of 11%—compared to the same quarter last year.

​
 
V

Voyaging Doc

Level 2 Member
Sorry for that secret traveler. That's devastating. do you know how long it will take before you can start reapplying?

thanks for the info InstinctX. This certainly may parallel Amex's recent struggles. They didn't reach an agreement with costco which makes up some 8% of their revenue so costco may be dropping amex as their exclusive card, maybe because the profit margins are so low?
 
InstinctX

InstinctX

Level 2 Member
AmEx typically it charges merchants 2.89% plus 10 cents trans. fee. To renew Costco, it probably wouldn't make economic sense for AmEx... (this is Costco after all with their "no frills" to drive down costs: Costco makes us use their random cardboard boxes LOL)

In the bigger picture, about 80% of the AmEx's revenue comes from swiping the cards and only 20% from interest income on pending balances [LA Times]

Very cool infographic:
Code: 
http://www.wsj.com/articles/costco-says-split-with-amex-related-to-cost-1423849047
 
ctbarron

ctbarron

Level 2 Member
Sorry about the closure. Chase seems to be on the warpath over the last several months.

My two thoughts. How old is each account with Chase? Did you get them all in a short time frame? Also, any bank accounts at Chase where you deposited MO's?

Make sure you get those UR points out quickly.
 
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nickelfish1

Level 2 Member
I'm sorry to hear this.

Did you fund a any of the recent CU' s with any Chse card?

Has anyone ever sued Chase, or gone thru the Att General, to get a card back or to find out exactly why the cards were closed? Or do people just accept the closures and that's it?
 
VDebs

VDebs

Level 2 Member
InstinctX said:
I'm also sorry to hear about your loss of accounts. Pure speculation, I think this may be a proactive move by Chase and we may see other issuers following suit ... with the likelihood of interest rates rising soon, "transactors" (those who pay off their balances) will become less profitable, and the credit card divisions will rely on borrowers to grow their revenues & keep Wall Street happy.
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There's some reason for optimism. And by "optimism" I mean that China's slow motion train wreck and Grexit will probably ensure that all that Fed taper talk is itself tapered off. We're not moving away from ZIRP. Interest rates are here to stay at zero for pretty nigh well forever. It's a constitutive feature of late capitalism. That and chronic underconsumption causing perpetual crisis.
 
Yeshu

Yeshu

Level 2 Member
Sorry about the closure of your account. As a general rule, go slow with Chase and Amex. They offer the best credit cards and it is best to nurture a relationship with them. And as other have mentioned, with Chase (or any credit card provider, for that matter), don't cycle your CLs. And try to pay after your statement hits and not before that.
 
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PNW-MSSER

Level 2 Member
nickelfish1 said:
I'm sorry to hear this.

Did you fund a any of the recent CU' s with any Chse card?

Has anyone ever sued Chase, or gone thru the Att General, to get a card back or to find out exactly why the cards were closed? Or do people just accept the closures and that's it?
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I have only heard of cases wherein Chase tells you to pound sand post closure, they are too big and any perceived risk is immediately taken care off by the largely immune risk department.
 
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mensday

Level 2 Member
Both my wife and I are still blacklisted after 7 years. I try once a year for both accounts and always get a letter stating denied due to an unsatisfactory relationship with the bank. I had used the cards for balance transfers that were deposited into CDs and money markets when rates were high. What concerns me is now I am wondering if the information is now being shared. It appears we are both now blacklisted by Barclays. Just tried to apply for a card for my wife and me and both were declined "due to past bankruptcy, charge off or other issue with bank." Not sure why we would be banned from Barclays as we did not abuse their cards and no blemishes on credit reports ever.
 
secret traveler

secret traveler

Level 2 Member
I did use my Chase card to fund a CU as well as other endeavors. Never had a problem, in fact my credit score has been increasingly gone up from all my cards and activity. The thing that pisses me off is that there was no warning. No strike one or two - just straight to strike three - you're out!!
 
niehlin2

niehlin2

Level 2 Member
Sorry for your loss. Do you have a chase bank account? From what I read, Chase closes credit cards first followed by bank account. If you do have a bank account close it yourself ASAP before Chase takes the action.
 
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taxicabnumber

Level 2 Member
Sorry to hear about your loss. My take on this is in part that banks (at least Chase/Amex, i.e., the ones that are on top of their shit) are becoming less and less forgiving of CL cycling (also seen with Amex/the OBC debacle; when I collected that OBC data and ran a bunch of regressions/correlations, the only variable that came in significant in pretty much any of them was a dummy variable for "did you regularly exceed your CL")...
 
James from BNA

James from BNA

VR Jacket Guy
secret traveler said:
GREAT NEWS!! I got ALL my Chase cards re-instated!

I contacted the executive department at Chase and had them review my case. Based on their review they are re-instating all my cards. I am back in the game!!
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Did they give you any more hints on why you were canned and what you can do to toe the line going forward?
 
secret traveler

secret traveler

Level 2 Member
I asked them why they cancelled the cards in the first place and they said they didn't really know if it was a human or system review that cancelled it. I couldn't get any more details than that.

I think the lesson here for all of us is always try to go to the real decision makers and don't take "no" for an answer if you know you haven't done anything wrong.
 
plane2port

plane2port

Level 2 Member
Interesting that they don't even know why they cancelled your cards. Seems like there would be some notes in your files from someone. But I am thrilled your got your cards back!
 
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