First, yes, it does hurt your credit quite a bit to have an account showing on your report as closed by creditor, not closed by consumer. That is why the law was changed years ago--before the change the reports did not show who closed the account and a consumer closed account was rated the same as a creditor closed account.

The OP's experience suggests that the long standing advice to keep accounts open to help your credit score may be getting out of date--due to the danger of banks closing your account just because of the problems they created.

If OP tries to get Chase to do something, it would be useful to report back on what luck, if any, he or she had.

Could also try disputing the report via Fair Credit Billing Act procedures.