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Chase BK Denial

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Chase BK Denial

I recently applied for a Chase United Club card as I received a targeted offer from United.  I received a message after the application stating they need to evaluate the application further.  An automated email message also came that essentially said the same thing.  Today I received the thank you but no thank you letter that states:

  • Our decision was based on the following reason(s): Your credit report reflects a bankruptcy

I thought that was odd as my bankruptcy was discharged in 2004 and is no longer on my credit report.  I did work with Freedom Financial when I had issues again back in 2011-2 due to a job loss, and those accounts were settled for less than full amount and are listed on my report as such.  One of those creditors at that time was Chase. I contacted the recon line, the rep put me on hold and came back with all these accounts that they said they are owed on with outstanding balances (that were part of the discharged bankruptcy).  The rep told me that if I felt this information was erroneous I can contact their Recovery Department and he gave me their number.  

 

My question is:

1. I do not have a bankruptcy listed on my credit report (any of them) yet Chase is showing that I do.  What data are they getting that would still have derrogatory public records listed past the time limit (it says they pulled data from Equifax)?  

2. Should I even call recovery or are they just going to hound me to pay the full balance when it was already discharged and/or settled?

 

I'd appreciate any advise and guidance.

 

Starting Score: EQ 557 EX 551 TU 583
Current Score: EQ 630 EX 633 TU 662
Goal Score: 730
Message 1 of 3
2 REPLIES 2
Senior Contributor

Re: Chase BK Denial

Even though your bankruptcy is no longer on your credit report, Chase uses its internal records based on your prior history with them, their affiliates, and any other bank(s) they may have acquired to evaluate your credit application.  I would guess based on what you stated that you are blacklisted from applying for credit from Chase until either you pay your past obligations or allow more time to elapse.





Message 2 of 3
Valued Contributor

Re: Chase BK Denial

My question is:

1. I do not have a bankruptcy listed on my credit report (any of them) yet Chase is showing that I do.  What data are they getting that would still have derrogatory public records listed past the time limit (it says they pulled data from Equifax)?  

 

While it may not be listed it might be in their records from an acquisition of another bank during the 2008 crisis.  Though it's been over 10 years there may be a flag related to the 2011-2012 issue as well.  While they're not required to issue a card under your current information and history if they weren't included in either scenario it's worth investigating on your part.  Make sure everything is in order and then try calling again for recon.  If it still fails then call recovery as directed and see if they can purge the flag that's causing the issue.

 

2. Should I even call recovery or are they just going to hound me to pay the full balance when it was already discharged and/or settled?

 

You're discharged which means they have no legal ability to collect the funds if they were included in BK that was discharged.  They can't collect on an account that was settled for less than owed either.  SOL for the these have already passed and the prior agreement for settling for less than owed is legally binding.  

 

 

**Solicitations from co-brand parties like United aren't a pre-approval, they're simply an advertisement for the product.  There's no pre-screening done before they send them out. 

500K+ TCL / 800+ FCOs
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