Chase Possible Adverse Action.

[ThomasJNewton]

A friend had a loan he made to another friend repaid and used that to pay off his Chase and one other card. He had been at 75% on the Chase card and 90% on the other one (on and off over the last year). He waited until the other card reported a zero balance (he is an authorized user on two other cards, one with a zero balance and the other at about 5%), before he made the payment on the Chase card. Chase reported the zero balance, raising his  Experian FICO to  819, his Transunion FICO to 813 and his Equifax FAKO to 794.

However, the payment was made several days ago, and while they have not adjusted his credit limit down, the have only made $6,000 of the $19,000 available. Curious what people think. Are they just waiting to ensure the payment really clears, or are they likely planning adverse action on the card?

I presume they will do something within a few more days, but have not seen this before, so I have no idea what to tell him.

[Kforce]

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@ThomasJNewton wrote:

A friend had a loan he made to another friend repaid and used that to pay off his Chase and one other card. He had been at 75% on the Chase card and 90% on the other one (on and off over the last year). He waited until the other card reported a zero balance (he is an authorized user on two other cards, one with a zero balance and the other at about 5%), before he made the payment on the Chase card. Chase reported the zero balance, raising his  Experian FICO to  819, his Transunion FICO to 813 and his Equifax FAKO to 794.

However, the payment was made several days ago, and while they have not adjusted his credit limit down, the have only made $6,000 of the $19,000 available. Curious what people think. Are they just waiting to ensure the payment really clears, or are they likely planning adverse action on the card?

I presume they will do something within a few more days, but have not seen this before, so I have no idea what to tell him.

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It could be either but I think they are just waiting for the payment to clear. 

Lets hope I am correct.  

[DeeBee78]

If he does not have a history of making large payments from an established payment account, it will be funds verification. Chase doesn't want to be on the hook if your payment fails. If I was an algorithm and I saw someone that has been making low payments with high utilization suddenly make two large payments, I'd flag it for hold as well. 

I've had this happen with Citi. The held my funds for 30 days refusing to update my available credit, but showing a $0 balance. When I made my first payment on my Navy Federal card, they didn't release the available credit for 10 days. 

[pizzadude]

How much was the amount of the payment to Chase, it was $19K or close to that?

I agree with others, my guess is they're taking extra time to make sure it clears

[ThomasJNewton]

It was about $11,500. Previous payment was about $7,000, earlier in the month. Last month it was also about $5,000-$6,000 or so. Same account as he usually uses. 

[FicoMike0]

I'll have to make a note the next time I pay my prime card, I don't recall how quickly the cl comes back. The only one I've actually noticed is amex, they restore the cl while I'm still in the app. Then again, my amex balance is never over $1000, cl is $27,000. Different ballpark.

[ThomasJNewton]

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@FicoMike0 wrote:

I'll have to make a note the next time I pay my prime card,

My experience with Chase is they either restore the credit right away (meaning as soon as the payment is made) or the morning after the payment posts (if made before 20:00 PM Eastern time - between 20:01 and 23:59, all bets are off). :-)

My friend's card is still in limbo, no adverse action, but no restoral of his remaining credit. He has more than enough credit with his other cards, so it is not a crisis, but still kind of annoying needing to keep track of it. :-)

[zerofire]

I would not be too concerned. Chase is usually rather fair. Last time they wanted to reduce my credit they also offered an opt out. They did that twice. Most likely the amount paid is just too much through a method that is reversible. Chase is just waiting for the funds to properly lock as transferred to credit the line. I know that my bank does electronic transfers for my bills especially those that are at banks. The electronic transfers clear overnight since the receiving bank knows that I cannot yank the money back.

The biggest way to figure it out is by looking at how they paid. The slowest way is via check from some rare institution that nobody knows. That would cause an easy 2 week hold.

[ThomasJNewton]

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@zerofire wrote:

Chase is usually rather fair.

That has not been my experience, particularly on this topic. I have seen them balance chase people in this circumstance on many occasions, but nice to hear they do not always do that.

Last time they wanted to reduce my credit they also offered an opt out. They did that twice.

I presume those times were for lack of use, rather than concern about credit risk.

Most likely the amount paid is just too much through a method that is reversible. Chase is just waiting for the funds to properly lock as transferred to credit the line. I know that my bank does electronic transfers for my bills especially those that are at banks. The electronic transfers clear overnight since the receiving bank knows that I cannot yank the money back.

Well, this was an ACH transfer and this is one week, so I will guess we should know today if that is the issue.

The biggest way to figure it out is by looking at how they paid. The slowest way is via check from some rare institution that nobody knows. That would cause an easy 2 week hold.

As I mentioned, it was an ACH transfer and he had confirmed the funds cleared the next day. In today’s world, even an out of town check clears in less than a week, as no bank physically transfers a check anymore, but just turns them into ACH transfers.

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[ThomasJNewton]

Good news! After a week, Chase restored his credit limit, so no adverse action. :-)