Chase blacklist after Debt Management Plan

[Anonymous]

I recently finished a DMP May 2020.  One of the cards in the plan was a Chase card.  In July I applied for CS Preferred since my credit scores from all three bureaus were around or above 700.  I got denied, called recon and was declined a second time due delinquency with Chase.  However, this makes no sense to me due to the fact that I never missed a payment and the debt has been paid in full.  Has anyone else had this issue after a DMP?  If so, how did you resolve it?  Thanks.

[OmarGB9]

DMPs tend to let accounts default and then work out deals with the creditors. Meanwhile they collect their fee the whole time, but keep most, if not all, of the money that's supposed to be going towards your debts.

[Anonymous]

According to my credit reports there have been no late payments on the account.  DMP has been fully paid.

[Jnbmom]

DMP are viewed as a person having financial difficulties. You just paid off the program 3 months ago, chase isn't not going to grant you credit I would imagine since they were one of your creditors in the program .

I know you stated no lates reported, how are the accounts listed on your reports? Is their a DMP notation ? I know these programs reduce your rates with creditors, but did you pay the full amount you owed to them?

[Anonymous]

Full balance paid.  Account closed on report, but all payments on time.  Only thing that changed really was a little lower interest rate but was still around 12%.  The DMP notation is supposed to come off the report when the program is paid.  Right now 2/3 agencies have removed the notation.  Still waiting on Transunion.

[Jnbmom]

---

@Anonymous wrote:

Full balance paid.  Account closed on report, but all payments on time.  Only thing that changed really was a little lower interest rate but was still around 12%.  The DMP notation is supposed to come off the report when the program is paid.  Right now 2/3 agencies have removed the notation.  Still waiting on Transunion.

---

Well that's good, but given you entered the program although you paid off your debt which is great , chase will still probably consider you a risk unfortunately.

[Anonymous]

@Anonymous Was your original chase account closed prior to or as a result of the DMP? Were there any lates or did you default on the original account?

It's unlikely that you can turn this around immediately. You can ask for a second recon, but email or call in to the chase backdoor/exec office if possible. Also can you have them confirm the exact reason for your denial and whether this will prevent you from opening another account with them?

The only other option may be to move on for now. Chase tends to have a long memory.

[sjt]

---

@OmarGB9 wrote:

DMPs tend to let accounts default and then work out deals with the creditors. Meanwhile they collect their fee the whole time, but keep most, if not all, of the money that's supposed to be going towards your debts.

---

If the OP did a DMP with a non-profit credit counseling service, that would not be the case.

[sjt]

---

@Anonymous wrote:

I recently finished a DMP May 2020.  One of the cards in the plan was a Chase card.  In July I applied for CS Preferred since my credit scores from all three bureaus were around or above 700.  I got denied, called recon and was declined a second time due delinquency with Chase.  However, this makes no sense to me due to the fact that I never missed a payment and the debt has been paid in full.  Has anyone else had this issue after a DMP?  If so, how did you resolve it?  Thanks.

---

Couple of things:
1) Creditors usually don't report late unless you miss two payments in a row. A payment can arrive a day late and it would be considered late but not going to be reported to the CRA.
2) I think the main reason for the denial is that you just completed a DMP (congrats BTW). 

3) Even though Chase was paid back in full, it was done via a DMP and they probably gave you a large APR reduction.

Just give it at least 6 months before you apply for another Chase account.

[mrjerry]

My wife was in a similar situation. We reached out to multiple departments and finally was told to re-apply post 48 months from date of settlement.