May 15, 2014, 8:16 am
Last edit by: StartinSanDiego
This thread is now archived. Please follow the topic here: https://www.flyertalk.com/forum/chase-ultimate-rewards/1986148-chase-closed-my-credit-card-account-s-tales-speculation-2019-thread.html
If you feel your account has been unfairly closed, consider filing a complaint with the Consumer Protection Financial Bureau:
CFPB's complaint form: http://www.consumerfinance.gov/complaint/
When someone reports an account closure here, a lot of the same questions get asked. It might be useful to answer some questions in advance. This could help figure out what happened or how to proceed:
2013.9
2013.12 2014.6
http://www.flyertalk.com/forum/chase...ta-points.html
On 1/4/15, LivelyFL noted that 34 posts have referenced account closures (updated 1/25/15):
1, 55, 80, 108, 117, 129, 146, 165, 182, 212, 221, 222, 232, 235, 262, 272, 281, 326, 364, 410, 411, 428, 475, 477, 482, 513, 552, 586, 620, 648, 656, 662, 714, 718, 784 and 815.
Mortgasm provided more detail as follows:
001 - moarmiles little explaination - 'inconsistent spending'
055 - brettskyg chase gift cards tiny ms
080 - Artemk checking chase gift card, tiny MS, international wires, wall-mart BP
108 - TTnc4me (105 actually) no info
117 - rodsren
129 - Kybosh chase gift card checking
146 - mintcilantro - checking 6k/month MS, BB payments from another ss#, some MO/AP, 7new cards in 90days, short cycling
165 - newcomr - checking
182 - thehawk75 - heavy MSw/other banks,
212 - LRD - 2x spend of 20k /month (on two cards), checking
221 - iceman 77_7, no info
222 - jk2 no info
232 - hitman1420 checking , heavy MS activity (no number)
235 - clearlyanewb checking, MS activity (10k AGC and more), light credit history, 10 recent inquiries
262 - brc01 - shortcycling, some MS (18k/month over a few cards), 1
272 - rambo - 70% MS on 5 cards, WM BP of 16k/month on 5 cards
281 - prestonv - heavy MS - 20k/month on multiple chase cards, heavy WMBP (ink stayed open)
326 - pacupgo - false alarm, no shutdown
364 - edh101985 - tiny MS (bonus only) , 4 chase cards in 6 months,
410 - msetr - lots of freedom/ink ms
411 - standaman360 - international wires (business), million dollar balances,
428 - queensgambit - gambling transactions, UR point transfer from SO, 5 chase apps 3 new chase cc in 45 days, Blogger points coach
475 - dogloverjb - checking, international wires,
477 - ftomasz - 14 inquiries in 8 months, 5 chase, minimal MS, rapid upswing in credit, paying from multiple accounts
482 - liw5215 - Heavy MS, re-entered after 13 months
513 - thegasguru - checking, $3k/month MO to checking, NO MS, AP,
552 - LAXtoWorld - 3 cards in 30 days
586 - adavydov7 checking, $1k APs,
648 - CMHFlyerOH - checking, MO, 3k gift cards
656 - I can see for miles - Maxed UR 5x rewards on Freedom and Ink cards. Chased closed all accounts. Was approved for Ritz Carlton card 14 months later and did nothing unusual with it, other than lower CL from 30K to 10K to free up CL for possible approvals. Two subsequent Chase apps (Chase Ink and Marriott Rewards), on separate dates 3+ months later, were declined for a "previous unsatisfactory relationship ..."
662 - frogdog51 - Chase VGCs (Reapproved in 12 months)
677 - Subdawg - closed for piggybacking
714 - Mamibear - 'abuse' redcard MS
718 - maxswanson - MS, 11 chase cards, traded UR, (reapproved after 12 months)
752 - peaser - "reputational risk" associated with the business (decision reversed later)
757 - uncommonsensical checking, 3 Cashier's Check deposits with quick w/d (the w/d were to pay CHASE credit cards! ridiculous 'loss prevention' dept. gods). All CC's closed 2 days later. Tried EX Office- they seem to have zero power once the Mullah in loss prevention has issued a fatwa (my guess: some 27 year old with a god complex).
762 - knopfler - checking closed (all credit cards closed in both mine and Mrs. Knopflers accounts about three weeks after checking closure)
771 - milemonkey - 'reputational Risk" connected to Attorney General lawsuit
784 - unstable one: 2 cash deposits over 10k to chase checking
815 - dukerau - one time UR point sale, 77% spending is 5x,
If you feel your account has been unfairly closed, consider filing a complaint with the Consumer Protection Financial Bureau:
CFPB's complaint form: http://www.consumerfinance.gov/complaint/
When someone reports an account closure here, a lot of the same questions get asked. It might be useful to answer some questions in advance. This could help figure out what happened or how to proceed:
- Did you transfer UR points to someone with a different address? Different last name?
- Did you sell UR points to someone?
- Approximately what percentage of your charges earned less than 5x points in the past 12 months?
- Did a Chase or non-Chase bank recently close one of your credit cards?
- Are you using up a large percentage of your credit line on all Chase and non-Chase credit cards?
- Is your total credit line with Chase much higher than with other banks?
- Did you apply for many credit cards or other forms of credit in the past 2 months? ("Many" may be hard to define.)
- If you have a Chase checking account how much did you typically deposit in money orders per month, if any?
- Did you recently start spending a lot more with Chase than in typical months?
- Is your monthly balance frequently close to your credit limit?
- Approximately what percentage of spending was on gift cards this year?
- How much of your bill do you typically pay using WM or KMart bill payment if any?
- Do you have a Chase mortgage or other account that might be profitable to Chase?
- Has your credit score or credit profile changed recently? As in: significantly more debt, more open credit lines, or a large drop in your credit score?
2013.9
2013.12 2014.6
http://www.flyertalk.com/forum/chase...ta-points.html
On 1/4/15, LivelyFL noted that 34 posts have referenced account closures (updated 1/25/15):
1, 55, 80, 108, 117, 129, 146, 165, 182, 212, 221, 222, 232, 235, 262, 272, 281, 326, 364, 410, 411, 428, 475, 477, 482, 513, 552, 586, 620, 648, 656, 662, 714, 718, 784 and 815.
Mortgasm provided more detail as follows:
001 - moarmiles little explaination - 'inconsistent spending'
055 - brettskyg chase gift cards tiny ms
080 - Artemk checking chase gift card, tiny MS, international wires, wall-mart BP
108 - TTnc4me (105 actually) no info
117 - rodsren
129 - Kybosh chase gift card checking
146 - mintcilantro - checking 6k/month MS, BB payments from another ss#, some MO/AP, 7new cards in 90days, short cycling
165 - newcomr - checking
182 - thehawk75 - heavy MSw/other banks,
212 - LRD - 2x spend of 20k /month (on two cards), checking
221 - iceman 77_7, no info
222 - jk2 no info
232 - hitman1420 checking , heavy MS activity (no number)
235 - clearlyanewb checking, MS activity (10k AGC and more), light credit history, 10 recent inquiries
262 - brc01 - shortcycling, some MS (18k/month over a few cards), 1
272 - rambo - 70% MS on 5 cards, WM BP of 16k/month on 5 cards
281 - prestonv - heavy MS - 20k/month on multiple chase cards, heavy WMBP (ink stayed open)
326 - pacupgo - false alarm, no shutdown
364 - edh101985 - tiny MS (bonus only) , 4 chase cards in 6 months,
410 - msetr - lots of freedom/ink ms
411 - standaman360 - international wires (business), million dollar balances,
428 - queensgambit - gambling transactions, UR point transfer from SO, 5 chase apps 3 new chase cc in 45 days, Blogger points coach
475 - dogloverjb - checking, international wires,
477 - ftomasz - 14 inquiries in 8 months, 5 chase, minimal MS, rapid upswing in credit, paying from multiple accounts
482 - liw5215 - Heavy MS, re-entered after 13 months
513 - thegasguru - checking, $3k/month MO to checking, NO MS, AP,
552 - LAXtoWorld - 3 cards in 30 days
586 - adavydov7 checking, $1k APs,
648 - CMHFlyerOH - checking, MO, 3k gift cards
656 - I can see for miles - Maxed UR 5x rewards on Freedom and Ink cards. Chased closed all accounts. Was approved for Ritz Carlton card 14 months later and did nothing unusual with it, other than lower CL from 30K to 10K to free up CL for possible approvals. Two subsequent Chase apps (Chase Ink and Marriott Rewards), on separate dates 3+ months later, were declined for a "previous unsatisfactory relationship ..."
662 - frogdog51 - Chase VGCs (Reapproved in 12 months)
677 - Subdawg - closed for piggybacking
714 - Mamibear - 'abuse' redcard MS
718 - maxswanson - MS, 11 chase cards, traded UR, (reapproved after 12 months)
752 - peaser - "reputational risk" associated with the business (decision reversed later)
757 - uncommonsensical checking, 3 Cashier's Check deposits with quick w/d (the w/d were to pay CHASE credit cards! ridiculous 'loss prevention' dept. gods). All CC's closed 2 days later. Tried EX Office- they seem to have zero power once the Mullah in loss prevention has issued a fatwa (my guess: some 27 year old with a god complex).
762 - knopfler - checking closed (all credit cards closed in both mine and Mrs. Knopflers accounts about three weeks after checking closure)
771 - milemonkey - 'reputational Risk" connected to Attorney General lawsuit
784 - unstable one: 2 cash deposits over 10k to chase checking
815 - dukerau - one time UR point sale, 77% spending is 5x,
Chase closed my credit card account(s) [Archived 2013-mid 2019]
Mar 19, 2017, 4:15 pm
#1336
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,760
I've been following this thread off and on for a while, and I believe some have claimed they had been cut off because they'll only use freedom for 5X promotional charges, CS for dinner, travel & nothing else (and as Hawkeye pointed out, probably something missing in their story). I think I will follow this thread more closely going forward. Maybe I'm just noticing some pushback on these "stories" from you and Hawkeye that make me believe what I do, is without risk. I don't churn and rarely cancel cards, but I generate a large amount of rewards using the Chase cards in their targeted categories.
Flyertalk has an entire forum dedicated to manufactured spending. In simplest terms it is using a credit card to buy something (typically a giftcard) that can be converted into cash and used to pay the credit card bill. Expenses are incurred in the process, and rewards are earned.
Card issuers consider this a credit risk because the cardholder may not use the cash to pay the bill. They consider it a regulatory risk because the pattern of transactions shares some elements with money laundering. They consider it a marketing failure because the cardholder typically does not continue to use the card after spending just enough to earn the new account bonus, or spends only in categories that generate bonuses.
Card issuers consider this a credit risk because the cardholder may not use the cash to pay the bill. They consider it a regulatory risk because the pattern of transactions shares some elements with money laundering. They consider it a marketing failure because the cardholder typically does not continue to use the card after spending just enough to earn the new account bonus, or spends only in categories that generate bonuses.
Last edited by Happy; Mar 19, 2017 at 4:21 pm
Mar 19, 2017, 5:12 pm
#1337
Join Date: Nov 2015
Location: St. Louis, MO
Programs: Southwest Companion Pass
Posts: 790
Chase encourages this type of behavior by allowing users to get multiple cards and then allowing them to transfer points to the card where they can receive higher value. I mean if you have the CSR, why would you book travel with the Freedom? And why would someone with the Freedom buy gas with the CSR when the Freedom is offering 5x points for gas? After all, a point is a point, and since you're going to transfer them all to the CSR anyway, it doesn't matter which card earns them. If Chase doesn't like this behavior, maybe they would be better off not allowing transfers.
Mar 19, 2017, 5:22 pm
#1338
Join Date: Jan 2003
Location: New York, NY, USA
Programs: UA 1K - 2.1MM, HH LT Diamond, IHG Diamond, Bonvoy LT Titanium, Hyatt Glob
Posts: 766
Chase encourages this type of behavior by allowing users to get multiple cards and then allowing them to transfer points to the card where they can receive higher value. I mean if you have the CSR, why would you book travel with the Freedom? And why would someone with the Freedom buy gas with the CSR when the Freedom is offering 5x points for gas? After all, a point is a point, and since you're going to transfer them all to the CSR anyway, it doesn't matter which card earns them. If Chase doesn't like this behavior, maybe they would be better off not allowing transfers.
Mar 19, 2017, 5:48 pm
#1339
Join Date: Mar 2009
Location: PHX
Programs: HHonors Lifetime Diamond, UA Million Miler Gold, Marriott Platinum
Posts: 1,142
Chase encourages this type of behavior by allowing users to get multiple cards and then allowing them to transfer points to the card where they can receive higher value. I mean if you have the CSR, why would you book travel with the Freedom? And why would someone with the Freedom buy gas with the CSR when the Freedom is offering 5x points for gas? After all, a point is a point, and since you're going to transfer them all to the CSR anyway, it doesn't matter which card earns them. If Chase doesn't like this behavior, maybe they would be better off not allowing transfers.
Mar 19, 2017, 11:07 pm
#1340
Join Date: Oct 2011
Posts: 4,166
Chase encourages this type of behavior by allowing users to get multiple cards and then allowing them to transfer points to the card where they can receive higher value. I mean if you have the CSR, why would you book travel with the Freedom? And why would someone with the Freedom buy gas with the CSR when the Freedom is offering 5x points for gas? After all, a point is a point, and since you're going to transfer them all to the CSR anyway, it doesn't matter which card earns them. If Chase doesn't like this behavior, maybe they would be better off not allowing transfers.
Mar 19, 2017, 11:49 pm
#1341
Join Date: Nov 2015
Location: St. Louis, MO
Programs: Southwest Companion Pass
Posts: 790
In fact I will go on to say I earn most of my UR points with the Freedom and Freedom UL. Those two cards greatly enhance the value of the CSR and without that ability, I would not see much of a reason to keep it.
Mar 20, 2017, 1:57 am
#1342
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
Mar 20, 2017, 8:11 am
#1343
Join Date: Nov 2010
Location: Traveling some where hopefully
Programs: AS, AA Gold, and Hilton
Posts: 1,954
Never said they did care. In order to make any sense out of what I said, you would have had to read the comment of the person I was responding to. Basically he said that Chase didn't like people who use cards to charge to bonus categories only. I was saying that Chase encourages that by allowing transfers from cards like the Freedom, or Freedom UL to the CSR which will allow you to get extra value out of your points.
In fact I will go on to say I earn most of my UR points with the Freedom and Freedom UL. Those two cards greatly enhance the value of the CSR and without that ability, I would not see much of a reason to keep it.
In fact I will go on to say I earn most of my UR points with the Freedom and Freedom UL. Those two cards greatly enhance the value of the CSR and without that ability, I would not see much of a reason to keep it.
So using bonus categories is not the problem. Opening and closing accounts for the bonus with no additional spend and transferring UR's to others is a problem.
WM and gift cards are not on my list of things I do.
Mar 21, 2017, 4:56 pm
#1344
Join Date: Jan 2007
Programs: PC Pl, UA 1K, CC Gl
Posts: 2,235
If Chases closes your account for unauthorized points transfers, then what happens with your spouse account and your other relatives accounts?
Mar 21, 2017, 6:52 pm
#1345
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
Mar 21, 2017, 7:00 pm
#1346
Join Date: Nov 2015
Location: St. Louis, MO
Programs: Southwest Companion Pass
Posts: 790
Actually I have heard that once Chase shuts someone down, they will also shut down all the accounts of people who live at the same address. I don't have any experience with this so I don't know if it's true or not.
Mar 21, 2017, 7:32 pm
#1347
FlyerTalk Evangelist
Join Date: Aug 2009
Location: ZOA, SFO, HKG
Programs: UA 1K 0.9MM, Marriott Gold, HHonors Gold, Hertz PC, SBux Gold, TSA Pre✓
Posts: 13,811
However, if there is no solid evidence other than the same address (and all are individual accounts), would you believe that Chase will risk that for a potential lawsuit. In fact, there was one class action partially related to the account closure.
As HawkeyeFlyer said:
While I do believe some accounts were closed incorrectly, most of them did short cut the system and got caught by Chase.
Mar 23, 2017, 6:21 am
#1348
FlyerTalk Evangelist
Join Date: Aug 2002
Location: Intermountain West
Programs: Too many to list
Posts: 12,082
It's really quite simple. With the exception of about $5,000 in spending in the dining and travel categories, the rest of my spend goes on my Freedom when I can earn 5x points in bonus categories, or Freedom UL where I can earn 1.5 points for everything else. If all this additional spend was on the CSR, it would only be earning 1 point/$. And since I'm able to transfer these over to the CSR, I'm still able to take advantage of what that card has to offer except I have a lot more points to work with. Take that away, you might as well have a 2x cash back card.
Gang,
This thread is about account closures. If you want to discuss benefits of certain cards let's do it in the appropriate thread. Thread drift helps no one. Thank you.
Mod hat off-
Mar 24, 2017, 10:11 am
#1349
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,954
Mar 26, 2017, 7:41 pm
#1350
Join Date: Mar 2017
Posts: 7
My CSP account was closed a few days ago, citing too many recent inquiries + meeting the 4K minimum spending requirement in around a week or two. I did put two legitimate expenses though, and paid it off immediately after. I made a rookie mistake.
Am I just ....ed for the bonus though? Shows that I'm earning 9K points next statement. I haven't even had the card for a statement period before the account was closed, lol
Interestingly enough, the documentation that I sent via mail for the CIP (with LLC proof) was enough to get me approved for the CIP a few days later. What should I do in regards to that? I heard that as soon as Chase closes one of your credit accounts, they'll just close all of them over a later sweep.
Obviously if I get the points honored from the CSP, then I'll just put 5K worth of charges with the CIP asap hoping they'll honor that bonus as well as the threshold was reached. If not, I'll just call Chase up and cancel the card before an imminent shutdown. I bet that if I kept the card and slowly reached that 5K, it would be closed before then....
Sucks that I blundered this hard with Chase, I hit amex pretty hard with no issues whatsoever
Am I just ....ed for the bonus though? Shows that I'm earning 9K points next statement. I haven't even had the card for a statement period before the account was closed, lol
Interestingly enough, the documentation that I sent via mail for the CIP (with LLC proof) was enough to get me approved for the CIP a few days later. What should I do in regards to that? I heard that as soon as Chase closes one of your credit accounts, they'll just close all of them over a later sweep.
Obviously if I get the points honored from the CSP, then I'll just put 5K worth of charges with the CIP asap hoping they'll honor that bonus as well as the threshold was reached. If not, I'll just call Chase up and cancel the card before an imminent shutdown. I bet that if I kept the card and slowly reached that 5K, it would be closed before then....
Sucks that I blundered this hard with Chase, I hit amex pretty hard with no issues whatsoever