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bugheman
Posts: 25
Registered: ‎07-16-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?


creditwherecreditisdue wrote:

Upon reading some of the important provision of the bill take effect 90 days from enactment. That would be late August.

 

http://www.creditcardreform.org/pdf/credit-card-bill-2009.pdf

Message Edited by creditwherecreditisdue on 07-20-2009 08:28 PM

Something tells me - I haven't read the entire bill however it looks like there is a provision for banks to provide advance written notice when major changes to the account are performed (like closing it without notice). It seems to me that chase is jumping the gun and closing accounts before the bill takes place in order for them not to appear to be on the bad side of things. When you go to "reapply" or ask for consideration they then can open you a new account on new terms and create what extra profit opportunities out there they can following the "new" chase rules instead of rolling over the previous terms. I'm not an advocate of any bank, however My wife and I recently had to close a chase checking account 3 years ago due to bad service (not just at one branch, multiple occasions across the country as well as poor phone service). The WAMU card was a great deal, even had credit monitoring until chase came along. Things started to go downhill after that.

 

 

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creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?


bugheman wrote:

Problem with utilization

My 2 credit cards are used for business - although there is a hight utilization on each card they are all paid off every month (or at least 80% of that based upon a  business reimbursement run) . This was made aware to both my CC banks when I applied for the card. 

I understand the rule, still shady for them do so so.


Shady for who to do what? If you mean cancel a card it is unfortunate, but they can do it. And they are going to do it. They will still be doing it after all the provisions of the new law are in effect. They will just do it in a way that conforms to the new law as opposed to the current law.


 

bugheman wrote:

 

Creditwherecreditisdue - you must work for a bank.


What on earth are you talking about? I posted a legitimate link to the actual law as passed (which the cc industry views as poison) and have said all over this forum that Chase's actions are absolutely base, heartless, cruel and reprehensible. How on earth do you get to the above?

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?


bugheman wrote:

creditwherecreditisdue wrote:

Upon reading some of the important provision of the bill take effect 90 days from enactment. That would be late August.

 

http://www.creditcardreform.org/pdf/credit-card-bill-2009.pdf

Message Edited by creditwherecreditisdue on 07-20-2009 08:28 PM

Something tells me - I haven't read the entire bill however it looks like there is a provision for banks to provide advance written notice when major changes to the account are performed (like closing it without notice). It seems to me that chase is jumping the gun and closing accounts before the bill takes place in order for them not to appear to be on the bad side of things. When you go to "reapply" or ask for consideration they then can open you a new account on new terms and create what extra profit opportunities out there they can following the "new" chase rules instead of rolling over the previous terms. I'm not an advocate of any bank, however My wife and I recently had to close a chase checking account 3 years ago due to bad service (not just at one branch, multiple occasions across the country as well as poor phone service). The WAMU card was a great deal, even had credit monitoring until chase came along. Things started to go downhill after that.


The bill was passed to move up the effective date for many provisions of the FRB regulations and close down the window of opportunity for "free and easy" AA that existed. Nonetheless Chase are still trying to get done what they can before it is made slightly harder for them to do so. That is what their attorneys and MBA's have advised them to do. They are not your friends now, never have been and never will be.

 

I was well aware of the fact that Chase was a dreadful place for an individual to bank 25+ years ago. I didn't choose to do business with them now. Like an indenturee I was sold to them. Are they worse than either of their two predecessors, Providian and WaMu? Not really. WaMu treated most of the accounts they obtained from Providian as cash cows and if they changed the terms on any of those accounts it was invariably for the worse. Providian were the OG's of the CC industry and were sanctioned severely for their transgressions. The only difference is that the economic circumstances have changes. Carrying large portfolios of subprime CC's is no longer good business for money center banks. So Chase continues in the tradition of those who came before, abusing their cardholder base to exact any benefit they can. Doesn't surprise me one bit.

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pattycake
Posts: 760
Registered: ‎04-30-2007
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?

I've actually been lucky with Chase - they have always treated me well.  I was with a local bank called Valley National (Arizona only), which was purchased by Bank One, and now JP Morgan Chase.  I've gotten good service through all the transitions, but maybe because I have been a heavy use customer, with checking, savings and credit products.  I didn't use them for a mortgage, though, because their rates are too high.  

 

I hope the banking industry starts to get competitive again so they can start to treat others well again.   

pattycake's FICOs: 6/2/10 - TU: 708; EX: ???; EQ: 749
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?

* * * For calculating util * * *

Divide your balances by your total credit limits, not by the amount of available credit.

Of course, if they lowered your CL, you'd have to use that lowered figure.

So, if you have a $4K balance on a $10K card (I hope not!! :smileysurprised:), your util is $4K / $10K, or 40%.

Some people think it would be $4K / $(10-4)K, which would be $4K / $6K --that's wrong.

Don't use the available balance as the denominator; use your CL. --hth
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?

If the account is closed include the balance when calculating the top part of the fraction. Do not include the CL in the bottom part. Only include revolving TL in this calculation. No installment loans or mortgages.
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sheilaw
Posts: 1
Registered: ‎07-21-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?

First off credit card companies are business who wants profit not an NGO. It will always be in your contract that they can close your account anytime for any reason because it is their card and they are extending credit with terms and conditions.  They extend credit to you so that they can earn profit.  As a lending company it is always wise to look at your ability to pay your accounts.  Yes it is true that they should have looked and take into consideration your payment history with chase alone.  But if I were chase who is out to make profit I will also consider the risk if this person can pay his debt in the long run. Thus, information from your credit report factors in like available credit is low, you have many active accounts, you have many accounts with high balances.  Cause if I were chase  I will pause and say, with the economy right now, will this person be able to have the capacity to pay considering that he owes debt left and right.  So they rather close the account than taking the risk of bad debt. Why would they notify you beforehand and allowing you to utilize the credit before thus making your balance even higher.

 

come to think of it, it is a sound business decisions. 

 

solution, simple  go to another credit card company but believe the same practices would still be applied maybe not now but soon.  

 

with the new law, I think credit card companies will even be stricter in approving credit cards, I think in the long run the new law have more negative effects that helping us. I believe this closures and credit line decreases is one effect of the new law...

 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?

With regard to their current program I think Chase might be cutting their lawn with the tractor on autopilot and the blade set a little bit too low.
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Revike
Posts: 720
Registered: ‎05-04-2007
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?

[ Edited ]

There's no provision in the new regulations requiring notice of impending closure. At best, it might be considered as part of the 6-month studies that the FRB is supposed to undertake between February and August 2010.

 

Even if notice is eventually required, the banks will always be able to suspend your account at any time, without prior notice, and that will never be regulated (for obvious reasons).

 

AmEx has done essentially the same thing as Chase over the past 5-6 years (apparent random suspensions of good customer accounts, sometimes followed by closure). The only difference was that AmEx flagged accounts individually, whereas Chase has targeted a large group at once. Both banks have relied on poorly-written risk algorithms, which has antagonized the affected customers ...

Message Edited by Revike on 07-21-2009 07:44 PM
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: QUESTION FOR THOSE WITH CANCELLED WAMU/CHASE?


Revike wrote:

Both banks have relied on poorly-written risk algorithms, which has antagonized the affected customers ...


Exactly what I was trying to say above in slightly plainer English.


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