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Contributor
Posts: 86
Registered: ‎03-06-2007
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Re: Chase closing accounts

Any update from the OP on this?

 

Something doesn't sound, or smell, right.

Established Contributor
Posts: 888
Registered: ‎02-23-2017
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Re: Chase closing accounts

Without looking back, I think the last update was that someone at Chase didn't think this smelled right either and that the decision was being reviewed.

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Posts: 1,141
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Re: Chase closing accounts


longtimelurker wrote:

grillandwinemaster wrote:

baller4life wrote:

gdale6 wrote:

The moral of the story is its best to not have deposit accounts unless they are CDs with a bank that you are going to have a credit relationship with. A CU is ok they dont do these things normally. I learned this a long time ago pre myFico even existing. Sorry to hear this OP.


+ 1 gazillion! I am a FIRM believer in keeping your money separate from your credit relationships. I bank with Alliant and use them as my hub to pay all my bills. 

 

OP I am so sorry this happened to you. I have NEVER seen this as an account closure reason. Wow. These banks never cease to amaze me. That's why I love credit unions so much. #teamcreditunions


Ok, At the risk of sounding naive, why is it not a good idea to keep money and credit accounts at the same bank? 

 

My parents have had Wells Fargo for 30+ years. They've had two mortgages, a car loan, line of credit, and a Wells Fargo credit card in adition to various checking and savings accounts. 

 

Personally, I hate Wells Fargo with a passion and I don't do business with them if I can help it. But, they have had no problems. 


 

 

 Eggs in one basket.   If something spooks them, rightly or wrongly, you can suddenly lose all your banks credit cards and have to deal with loss of checking as well (which can then make you late when paying other issuers and everyone else).   With Chase, there are a few known triggers that can make them take nuclear options: transferring/selling UR points to someone other than the (very small) set of people you can transfer to, depositing "too many" money orders in the bank account which can then be traced back to spend on the chase credit card etc. 

 

Basically you don't want things linked unless there is a real advantage, which for some there is, such as payments from bank account to card instantly resetting available credit.   Depends on your needs.

 


The bolded part is why I don't, at this time, set up automatic payments on almost anything (except my smartphone bill, because I get a discount), but do one-time payments even though it takes a little more work.

Rebuilding credit since 12/14 Ch7 BK discharge. FICO 9/13/17:TU 658/EX 694/EQ 688 FICO 8 or 667 FICO 9 (Penfed), VS 3.0 9/13/17: TU 704/EX 684/EQ 697. $800 Amazon Prime Store Card, $951 Cap One secured Platinum MC, $1200 Walmart Store Card, $2000 Apple FCU Platinum Visa, $3000 Penfed Power Cash Rewards Visa, $3500 Cap One Quicksilver MC, $3600 Discover It, $4300 Overstock Store Card, $10k PenFed used car loan, $5k Navient student loan. In the garden as of 7/2/17 AND THIS TIME I REALLY MEAN IT!!! (unless I get a preapproval I can't refuse...)
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Re: Chase closing accounts


dlm0820 wrote:

Any update from the OP on this?

 

Something doesn't sound, or smell, right.


What do you mean, "Something doesnt smell right?"

 

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Posts: 531
Registered: ‎02-22-2017
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Re: Chase closing accounts

OP, any update from Chase on this? 

In the wallet:
Amex PRG ~ Amex BCE ~ Discover ~ NFCU Cash Rewards Visa Signature ~ NFCU Platinum Visa ~ NFCU Line of Credit ~ Chase Amazon Prime Visa Signature ~ PenFed Cash Rewards Visa ~ PenFed Promise Visa ~ Fairwinds Credit Union Cash Rewards Visa ~ CapOne QS1 ~ Lowes Store Card

Closed on mortgage 8/9/17!! Woot!
Contributor
Posts: 75
Registered: ‎09-10-2016
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Re: Chase closing accounts

No update as of yet. When I call the automated system it still states my accounts are closed, so not sure if they havent reviewed the case or are standing by their decision. If I do not hear anything by tomorrow, I will give them a telephone call. 

Contributor
Posts: 75
Registered: ‎09-10-2016
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Re: Chase closing accounts


NRB525 wrote:

KnightOwl101 wrote:
Correct. I updated my income couple weeks after the approval so I guess that triggered it. Hoping for the best but if not, it is what it is. Although I did plan to close out some cards so in a way, Chase helped me 😂 Smiley Wink

OP, sorry to hear about the closures, it would be a frustrating experience. 

 

Did you say you only used the checking / debit account about 6 times in a year? So does that mean you never had any direct deposit going there?  Were you paying monthly checking fees, or did the $6,500 Balance get those fees waived.?

 

I will guess that the combination of a checking account with no direct deposit (but a substantial static balance) got associated with high credit limits, including a recent boost with at least $5k for the Ritz card, putting OP near or at the internal limit for CL, based on the original stated income. When the OP updated the income soon after, the automatic algorithm used for risk calculations had no direct deposit cash flow history to compare to, a recent New Account plus Overall Credit Increase, started to try to recalculate what Chaees risk profile looked like, and ended up in a divide by zero kind of situation that made even $6,500 look like a kings ransom, then melted down and shut down all the accounts, automagically. 


Thank you for your comment, much apperciated. Also, when I opened the account, I originally put in 2500, and I authorized 10% of each check to go in that checking account. So, each month I take home about 4k. (Sometimes more due to overtime. Anywhere from 4k-5600.) So each month that checking account would at least get 800. Which 800 x 12= 9600. So with that theory I can understand the income problem but if they came to me before closing the accounts, I could easily fax over my pay stubs and balance on my other checking/saving account. 

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Registered: ‎03-10-2017
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Re: Chase closing accounts

Chase just closed all of my accounts today. I do not bank with Chase. I first opened a Freedom and then a Freedom Unlimited. Just recently, I applied and was approved automatically for the CSP (although I never received the card)! 

 

I just got off the phone with first CS then a LO and they stated periodic review of my profile caused the closure of everything. Too many inquiries and too many new cards. 

 

What I don't understand is why do they issue them just to close them? I have 1 new inquiry since being approved for the CSP. 

 

This is going to hurt...badly! 

 

I had just started feeling really good about coming back from the dead credit wise. I had worked so hard to get a "real" credit card and was extremely responsible with the cards. No where near the 4500 cl. My utilization was 16% with them. 19% overall. 

 

This just seems like really bad business to me. 

Contributor
Posts: 75
Registered: ‎09-10-2016
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Re: Chase closing accounts

[ Edited ]

Sorry to hear that. I completely understand what you're going through. Keep calling and make a stop up at your local branch to fight this. Many times, being annoying is a good thing. Annoy the business and they are more likely to work with you so they do not have to communicate with you any longer. In all honesty, build up your case and present the facts. Know all angles (Which you do because they told you the reasons why the accounts were closed) and come up with a defense for all and push your argument. Best of luck to you and let us know how it goes. 

 

-Allen

Established Contributor
Posts: 1,141
Registered: ‎02-07-2017
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Re: Chase closing accounts


poshshop wrote:

Chase just closed all of my accounts today. I do not bank with Chase. I first opened a Freedom and then a Freedom Unlimited. Just recently, I applied and was approved automatically for the CSP (although I never received the card)! 

 

I just got off the phone with first CS then a LO and they stated periodic review of my profile caused the closure of everything. Too many inquiries and too many new cards. 

 

What I don't understand is why do they issue them just to close them? I have 1 new inquiry since being approved for the CSP. 

 

This is going to hurt...badly! 

 

I had just started feeling really good about coming back from the dead credit wise. I had worked so hard to get a "real" credit card and was extremely responsible with the cards. No where near the 4500 cl. My utilization was 16% with them. 19% overall. 

 

This just seems like really bad business to me. 


Very sorry to hear about that. There seems to be quite the rash of these closures going around, both at Chase and Bank of America. Let's see if we can try to figure out more accurately why they closed you down. Some questions come to my mind (others may think of moreSmiley Happy

 

They cited number of inquiries and number of new cards - how many of each have you had in the past six months or so?

 

Which card had the 4500 CL, or did all of them have the same CL? How long had you had the other two cards (Freedom and Freedom Unlimited)?

 

What other CC's do you have, if any, and how long have you had them? What are their CL's and balances? (One very important thing to keep in mind - you may know about this already, in fact - is Chase's so-called "5/24" rule; if you want a Chase CC, no more than five total new accounts, including other Chase CC's, may be opened in a twenty-four-month period. More than that and you're liable to be denied.)

 

Did you make a habit of PIF'ing or (as it appears from this post) did you carry a balance?

 

Did you try to pay more than the minimum payment each month?

 

Did you make payments to your account more than once a month?

 

Did you ever engage in any spending patterns known to raise red flags with issuers, such as "manufactured spending" (MS)?

 

If possible, I'd suggest escalating the issue to Chase's Executive Office - look for phone numbers/emails in that department. Some banks, such as BoA, have specialized sections within their executive department dedicated to urgent customer service.

 

Don't give up hope. Remember, the OP in this thread has gotten at least one Chase official to concur that their closures were done in error.

Rebuilding credit since 12/14 Ch7 BK discharge. FICO 9/13/17:TU 658/EX 694/EQ 688 FICO 8 or 667 FICO 9 (Penfed), VS 3.0 9/13/17: TU 704/EX 684/EQ 697. $800 Amazon Prime Store Card, $951 Cap One secured Platinum MC, $1200 Walmart Store Card, $2000 Apple FCU Platinum Visa, $3000 Penfed Power Cash Rewards Visa, $3500 Cap One Quicksilver MC, $3600 Discover It, $4300 Overstock Store Card, $10k PenFed used car loan, $5k Navient student loan. In the garden as of 7/2/17 AND THIS TIME I REALLY MEAN IT!!! (unless I get a preapproval I can't refuse...)

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