Banned from Chase Bank Deposit Accounts

[Anonymous]

If this were to happen to me (a bank either bans me from having deposit accounts or cuts my CL on a credit card) I would assume that is their way of saying the relationship is at an end. If they cut the CL on my card, I would have to assume that they will also Balance Chase me down to Zero. If they end my deposit relationship I would have to assume that the CL cut on my credit card will be thenext step and it would be coming soon. Do one or the other to me and I am gone immediately.

This is what financially ruined me in the 2008 crash. I had $300K in lines, all UTD with no late payment ever. My Util was at about 15% and being paid down rapidly. It would have been at 0% in 5 months if I had been left alone by the banks, but that was not to be. My largest account who shall remain anonymous all of a sudden brought my CL down from 500% of my balance to 105% of my balance, running my Util up to 95% and dropping my FICO by 80 points. When the score dropped all others followed suit, and all of them imposed the penalty interest rate (basically quadrupling my minimum payments). As I paid them down they Balance Chased me (pay $200 towards the principle and immediately lose $200 in CL), so I said "to heck with you" and stopped paying altogether, figuring if my credit was to be trash I might as well know the reason. They ended up writing off over $100K a I was then and am now basically uncollectable (non-attachable income and a Trust to prevent attachment of anything else). To say I don't trust banks is an understatement and I never keep my assets and liabilities in the same bank.

[Green456]

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@Revelate wrote:

Bring a backup card then.  

Give up what was taken away with a *shrug* but cutting off the relationship altogether hurts you more than them.

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Closing a line of credit does not hurt me at all. My utilization is 0-1% per month. Closing off a relationship with a bank means nothing to me. I will just re-open with another and get new account bonus. There is no such thing as "banking relationship" with national banks. Like you said everything is computerized.

There is no reason to keep back up card which can be potentially closed, locked or balanced chased while you are abroad. It defeats the purpose.

There is plenty of banks and credit unions around. Chase is not the only player around and to be honest their credit cards became substandard after their fee increase. 

[Revelate]

The market changes over time. I perhaps didn't explain clearly the point I was trying to make: closing down your options just holds you back, not the FI's in question.

Ultimately everyone can do what they want, but unilaterally shunning a particular lender just strikes me as short-sighted.

[tcbofade]

You're not wrong, @Revelate , but humans aren't computers either.

We have some many options out there that if ONE FI takes whatever AA against me, I'm certainly going to consider ALL of my other options before giving any more business to that lender.  In my case, Barclays.  No harm, no foul, and they didn't destroy me, but an untimely slashing of credit line caused a card to report maxed out and several phone calls resulted in a lot of "it isn't their problem".  

They've almost completely reinstated the original credit line, and it's almost completely paid off.  That card won't ever be swiped.   I've got too many other options.

[Anonymous]

You mentioned that you closed a Chase account years ago. What are the circumstances that made you close your account?  It sounds like your account was too new to trigger closure and EWS would have been pulled on account opening so I doubt it was that. It was probably something from your previous account. 

[difringe]

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@Revelate wrote:

There are a few people recently arguing that if the lender whacks you to just stick that middle finger up in the air at them and walk.

Spite is never a good reason to do something: the FI does not care, so you shouldn't either.  Give up what was taken away with a *shrug* but cutting off the relationship altogether hurts you more than them.

I really don't understand what people find so offensive about any sort of AA, it's not personal or a reflection on you necessarily it's just something in the data stream that the algorithms flagged.

I understand this; logically speaking this is the correct response. I think what happens (hasn't happened to me yet but I know how I would react) is you don't even get an explanation for whatever AA they enact. I think ppl understand they aren't owed an explanation, but it's similar to when you apply for a job and get rejected with nothing more than a 'thanks but no thanks.' Doesn't give you an opportunity to really appeal or to learn from whatever mistake you made so you don't do it again. It's gotta be incredibly irritating to go from multiple accounts with a FI to banned for life. I've got cards with multiple FIs, but I'd still be pretty irritated if one of them just dropped me. I'd probably also be worried about other FIs seeing that AA and deciding they don't want any parts of me either.  All over something that you don't even know about

[Green456]

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@difringe wrote:

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@Revelate wrote:

There are a few people recently arguing that if the lender whacks you to just stick that middle finger up in the air at them and walk.

Spite is never a good reason to do something: the FI does not care, so you shouldn't either.  Give up what was taken away with a *shrug* but cutting off the relationship altogether hurts you more than them.

I really don't understand what people find so offensive about any sort of AA, it's not personal or a reflection on you necessarily it's just something in the data stream that the algorithms flagged.

I understand this; logically speaking this is the correct response. I think what happens (hasn't happened to me yet but I know how I would react) is you don't even get an explanation for whatever AA they enact. I think ppl understand they aren't owed an explanation, but it's similar to when you apply for a job and get rejected with nothing more than a 'thanks but no thanks.' Doesn't give you an opportunity to really appeal or to learn from whatever mistake you made so you don't do it again. It's gotta be incredibly irritating to go from multiple accounts with a FI to banned for life. I've got cards with multiple FIs, but I'd still be pretty irritated if one of them just dropped me. I'd probably also be worried about other FIs seeing that AA and deciding they don't want any parts of me either.  All over something that you don't even know about

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Fortunately not everybody uses EWS.