topic Re: Chase Closed My Accounts in Credit Cards

Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 03:32:16 GMT

Found out today chase closed my accounts(CSR & CF) due to a "returned payment" & "rapid increased balances". The return payment was due to me paying the same amount twice on my CSR account I forgot that I had already paid it days earlier. And the rapid balances are due to me leveraging my credit to invest in real estate. I've had CSR for a year and CF for about 9 months what should I do to get my account bank?

Re: Chase Closed My Accounts

NRB525 — Fri, 08 May 2020 04:08:30 GMT

Sorry to hear about the closures.

Increasing your amounts owed on credit cards to leverage real estate is a risky way to work. Taking large advances on credit cards will most likely result in adverse action as the banks take steps to reduce their risk by closing accounts and balance chasing existing balances. I am speaking from personal experience, though my balances were not increased to pursue real estate. The banks don't really care.

The only real way to get back the accounts is to reduce your credit exposure. Banks are really cranking on "risk averse" due to Coronavirus. You may have heard about this in the news.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 04:10:18 GMT

So you paid twice and second time you didn't have enough money to cover the payment?
Banks don't like returned payments. Some close accounts immediately, some restrict them and other banks will never give you CLI.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 04:23:51 GMT

Well I didn't take out a cash advance....but all in all I've always had big spend on these cards but have always paid them off in full on time! So if I'm not able to get the decision reversed does that mean I'm banned from chase for life? Cause those two were my everyday use cards, on top of that I had close to 150k in UR points.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 04:25:27 GMT

@Anonymous wrote:
Found out today chase closed my accounts(CSR & CF) due to a "returned payment" & "rapid increased balances". The return payment was due to me paying the same amount twice on my CSR account I forgot that I had already paid it days earlier. And the rapid balances are due to me leveraging my credit to invest in real estate. I've had CSR for a year and CF for about 9 months what should I do to get my account bank?

Its unclear from your comment whether you ran up the balance(s) on your Chase cards or on credit card(s) from other lenders.

You would typically have 30 days to reverse an account closure but I don't think that applies when the closure is initiated by Chase and not by the account holder. Chase also allows you 30 days to transfer your UR points to other partners.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 04:25:05 GMT

Yeah the second time I paid I didn't have the money in the account. Hopefully I can explain to them the situation and have the decision reversed.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 04:33:03 GMT

The spend was on my chase cards I filed for a reinstatement but I'm not sure what my chances are going to be to get reinstated the returned payment was a complete accident and I've always put lots of spend on the card.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 05:09:48 GMT

Have you been able to redeem your URs? If you are locked out, that would be my first ask. I don't know how successful you can be reversing. You do seem to have a good case, but not clear that issuers care ("OK, this time it was an accident, but maybe next time you really will be trying to stiff us". Or more likely, no response apart from "The decision stands")

Re: Chase Closed My Accounts

SweetCreditObsession — Fri, 08 May 2020 05:12:24 GMT

Wow, sorry this happened to you. I would try to try to contact them and see what it will take to get back in.

Re: Chase Closed My Accounts

Trikoret — Fri, 08 May 2020 05:21:43 GMT

It's probably to the returned second payment. Just tell them it was a duplicate payment. It's obvious the first one went thru and the second got declined. It's better to get declined then having a large credit balance.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 05:34:05 GMT

@Trikoret wrote:
It's probably to the returned second payment. Just tell them it was a duplicate payment. It's obvious the first one went thru and the second got declined. It's better to get declined then having a large credit balance.

That is certainly untrue! As this example shows. A double payment resulting in a credit is absolutely fine

ETA: now if you mean better declined than a large negative balance on the bank account, that may be true, as that can be nasty too.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 06:17:23 GMT

@Anonymous wrote:
@Trikoret wrote:
It's probably to the returned second payment. Just tell them it was a duplicate payment. It's obvious the first one went thru and the second got declined. It's better to get declined then having a large credit balance.
That is certainly untrue! As this example shows. A double payment resulting in a credit is absolutely fine

ETA: now if you mean better declined than a large negative balance on the bank account, that may be true, as that can be nasty too.

Yeah but banks aren't likely to close your checking account for overdrafting while credit card issuers are known to close a card for a returned payment.

I don't know how Chase looks at things OP but I will be very surprised if they reopen your account. A returned payment is one of the worst things you can do in a creditor's eyes. Even Capital One, one of the most lenient around, is known for closing even long time customers for a single returned payment.

Re: Chase Closed My Accounts

Iusedtolurk — Fri, 08 May 2020 08:02:53 GMT

@Anonymous wrote:
@Anonymous wrote:
@Trikoret wrote:
It's probably to the returned second payment. Just tell them it was a duplicate payment. It's obvious the first one went thru and the second got declined. It's better to get declined then having a large credit balance.
That is certainly untrue! As this example shows. A double payment resulting in a credit is absolutely fine

ETA: now if you mean better declined than a large negative balance on the bank account, that may be true, as that can be nasty too.
Yeah but banks aren't likely to close your checking account for overdrafting while credit card issuers are known to close a card for a returned payment.

I don't know how Chase looks at things OP but I will be very surprised if they reopen your account. A returned payment is one of the worst things you can do in a creditor's eyes. Even Capital One, one of the most lenient around, is known for closing even long time customers for a single returned payment.

That's pretty harsh closing an account down for just one returned payment.

A host of things could happen causing that to occur.

Why even advertise the returned check fee if you are going to just shut the account down. (rhetorical)

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 08:34:16 GMT

Nothing spells credit risk like a bounced payment.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 08:48:17 GMT

Yeah but if they're really paying attention to account they can clearly see I made the same payment of the amount that I had already made days before

Re: Chase Closed My Accounts

TSlop — Fri, 08 May 2020 11:54:58 GMT

@Anonymous wrote:
Yeah but if they're really paying attention to account they can clearly see I made the same payment of the amount that I had already made days before

I'd call them. If that is the sole and only reason why it was closed, it should be easily explained. I'm not sure how willing Chase would be on re-opening the account, but at least you would have made your peace and explained the returned/double payment.

Re: Chase Closed My Accounts

VPExecutive — Fri, 08 May 2020 12:09:33 GMT

@Anonymous wrote:
Found out today chase closed my accounts(CSR & CF) due to a "returned payment" & "rapid increased balances". The return payment was due to me paying the same amount twice on my CSR account I forgot that I had already paid it days earlier. And the rapid balances are due to me leveraging my credit to invest in real estate. I've had CSR for a year and CF for about 9 months what should I do to get my account bank?

I could understand this action if Chase posts the payment and restores available credit immediately, and you abused this feature to exploit overcharging on your credit card. Otherwise, I don't see the reason why one returned payment should warrant an account closure. If I ran a bank, I would simply charge a returned payment fee of $35 and move on, but Chase has the right to do what they want with their money.

Chase is known for being pretty firm. I doubt your account will be opened again, but I wish you luck.

Re: Chase Closed My Accounts

Anonymous — Fri, 08 May 2020 18:52:15 GMT

You guys need to think like a bank.

The returned payment unwittingly revealed to Chase that the OP did not currently have cash on hand, while at the same time he/she is running up debt on their Chase-issued credit cards. So Chase decides that the risk of OP being unable to repay the credit card debt is too high and closes the accounts to prevent the accumulation of more debt (at least on their cards).

Re: Chase Closed My Accounts

recoveringfrombk7 — Fri, 08 May 2020 13:42:19 GMT

Best of luck OP. Hope to hear that this gets resolved and your accounts reopened.

Re: Chase Closed My Accounts

Namaste7 — Fri, 08 May 2020 14:09:22 GMT

@Anonymous wrote:
Found out today chase closed my accounts(CSR & CF) due to a "returned payment" & "rapid increased balances". The return payment was due to me paying the same amount twice on my CSR account I forgot that I had already paid it days earlier. And the rapid balances are due to me leveraging my credit to invest in real estate. I've had CSR for a year and CF for about 9 months what should I do to get my account bank?

It's not uncommon for mistakes to happen, especially if you used a zero-based acount to handle your bill payments. Did you catch the error first and did you call them in advance to discuss the situation?

@Anonymous- We all have the discretion to manage our accounts and cash as we see fit, but you should always do so with the lender risk evaluation in mind. Having a safeguard in place when Plan A fails is crucial (i.e., in your case, the duplicate payment submission). It may be helpful to turn on all bank account alert settings. In the rare occurrence this happens again, you may be able to transfer the funds in the account so that the initial or second payment attempt clears. Alternatively, using a secondary backing account (e.g., a savings, money market, another checking account, line of credit or other assets) may be the best approach to safeguarding unanticipated payment situations.

While Chase did not disclosure it, your credit behavior may have been TOO aggressive given your account age. As far as getting your account back, did you pay down (or off) your existing balances as a measure of good will?