Denied By Chase
 

My wife had credit trouble many years ago before we were married. Several C/O but she never did a BK and had no judgements, etc. Since it has been over 7 years, all of derogatory stuff seems to have fallen off her CR. Her credit score is over 700+ with all 3 bureaus. A few months ago she applied and got a new CITIBANK Card with a healthy CL of over 5k.

Last week she applied for a Chase card but was denied. The reason in the letter states "delinquency or other derogatory status on exisiting accounts with us'.

My question is, is she forever out of luck with Chase bank in regards to any CC with them in the future? Is she on a permanent black list?

Thanks!

She needs to go and talk to Chase. If they had to write off any debt then she is probably out of luck with them. Given today's environment, why would they want to extend credit to her?

Also, a $5K CL and a 700 score is not too healthy, especially if you don't have other significant CLs.

thanks for reply. after doing more digging on FT and other websites, I found the number for Chase reconisderation and had my wife call. they said basically "the amount you owed, did not pay and we wrote off years ago" is keeping her from getting any Chase card. they said unless some payment is made towards those old accounts or that a BK is written into the memo of those accounts (my wife did not file BK fyi), she will probably never get a new Chase card. the CSR did say to keep trying/applying sometime in the future as the Chase credit criteria sometimes changes.

oh well, at least we know now!!

Glad you know understand what happened.

I can fully understand Chase's position and would anticipate just about any bank would take the same stance.

IMHO, nope. 'Cause any other bank won't know about the unpaid debt to Chase. Chase apparently maintains internal records of wife's old debt, but, it can't lawfully be on her credit report after seven years.

Again, IMHO, be really careful about paying any amount on old debt which can allow creditor to sue you for far more than old debt (interest, legal fees etc.). Reviving old debt is very, very dangerous.

My intent, although not worded properly, was any bank that had to write off a debt would take the same stance and deny her a new card. Not that other banks would know about the Chase situation.

What I dont understand it, if the wife filed BK then the bank would forgive her? Because this is the wordings from OP's post about the situation:

<<they said unless some payment is made towards those old accounts or that a BK is written into the memo of those accounts (my wife did not file BK fyi), she will probably never get a new Chase card.>>

So she would be better off to file BK years ago? And what is the meaning of C/O?

May I know this # please?

C/O meant charged off the account.

My wife did not file BK (which in hindsight might have been better long term) and it seemed like the Chase rep implied that if a notation of BK in her file would have "possibly" meant she might get a new card eventually. I am thinking that Chase would think "once she has filed BK she can't do it again anytime soon, so we will give her a card again".

i think the number was 888-270-2127

Just because something is no longer on her credit report, does not mean that the original lender does not have record (as you've found out)...and yes, they can still come after her and the fees alone would be hefty. When you file BK, you have in fact 'settled' as far as the law is concerned...but even after BK, the original lender will probably still say no. Also, there's a little rule the the Credit Bureau....every time you make a payment on a debt, the 7 years will start ticking again...really makes one want to be honest, eh?

this is absolutely untrue, at least under U.S. law.

perhaps i wasn't clear. IF you have a debt at the credit B. and you don't make a payment for 6 1/2 years, and then you DO make a payment, the clock will start again. My point was that the CB makes it difficult to be honest.

making a payment on a charged off debt does not reset the DFOC ( date of first delinquency ) which is the key date for a tradeline to report on a consumer credit report. Now this of course does not mean some data furnishers will not improperly report to the consumer's credit report; but illegal reporting can be dealt with.

good to know. A friend of mine went through all of this many many years ago, and she figured it was best just not to pay the debt when she was finally able. She said the NC credit B. said the clock would start again.