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Chase closed my credit card account(s) [Consolidated]

Chase closed my credit card account(s) [Consolidated]

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Old Dec 23, 18, 4:22 am   -   Wikipost
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Last edit by: liw5215
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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:
  1. Did you transfer UR points to someone with a different address? Different last name?
  2. Did you sell UR points to someone?
  3. Approximately what percentage of your charges earned less than 5x points in the past 12 months?
  4. Did a Chase or non-Chase bank recently close one of your credit cards?
  5. Are you using up a large percentage of your credit line on all Chase and non-Chase credit cards?
  6. Is your total credit line with Chase much higher than with other banks?
  7. Did you apply for many credit cards or other forms of credit in the past 2 months? ("Many" may be hard to define.)
  8. If you have a Chase checking account how much did you typically deposit in money orders per month, if any?
  9. Did you recently start spending a lot more with Chase than in typical months?
  10. Is your monthly balance frequently close to your credit limit?
  11. Approximately what percentage of spending was on gift cards this year?
  12. How much of your bill do you typically pay using WM or KMart bill payment if any?
  13. Do you have a Chase mortgage or other account that might be profitable to Chase?
  14. 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?
Related threads: 2013.1 2013.4 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,
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Old Feb 23, 18, 6:57 pm
  #1786  
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Originally Posted by Diplomatico View Post
And there's your answer. The attempt to "game the system" by reducing the annual fee to a level that prevents Chase from charging the card's annual fee.

"The CARD Act and implementing regulations provide that an issuer may not require consumers to pay fees (other than penalty fees) during the first year in which an account is opened which exceed 25% of the total initial credit line."

Chase Ritz-Carlton Annual Fee Waiver Trick ? TravelinPoints
Wow, thanks for posting this.

Goes to show people that you dont follow every trick the bloggers posted so to game the system to the extreme, without paying attention to what the current environment is versus when the time such trick is promoted.

Originally Posted by Ultraboost View Post
What was your partner's #/24 status (# of new accounts in past 24 months) and hard pulls in the last 6 months when they opened the Ritz card? AAoA and credit utilization ratio (for all accounts even non-Chase) would be helpful too so we can assess.
Did you see others' posts? The closure is more likely caused by their attempt to get the Ritz Carlton card AF refunded by lowering the CL to below the threshold that a card issuer can charge the hefty AF of Ritz card. I would bet the request to lower CL is done after they have gotten the lucrative benefits of the Ritz card, like the airline credit for example.

Last edited by Happy; Feb 23, 18 at 7:06 pm
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Old Feb 23, 18, 7:26 pm
  #1787  
 
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Originally Posted by Happy View Post
Did you see others' posts? The closure is more likely caused by their attempt to get the Ritz Carlton card AF refunded by lowering the CL to below the threshold that a card issuer can charge the hefty AF of Ritz card.
We have no idea what the reason was. This CL lowering practice is more common than you think and has never resulted in such a shutdown. This is why we're asking OP for more information. OP's partner's 5/24 status at the time of the Ritz application is very relevant.
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Old Feb 23, 18, 11:15 pm
  #1788  
 
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Not mandated by CARD Act!

Originally Posted by Diplomatico View Post
And there's your answer. The attempt to "game the system" by reducing the annual fee to a level that prevents Chase from charging the card's annual fee.

"The CARD Act and implementing regulations provide that an issuer may not require consumers to pay fees (other than penalty fees) during the first year in which an account is opened which exceed 25% of the total initial credit line."

Chase Ritz-Carlton Annual Fee Waiver Trick ? TravelinPoints
Chase not prevented from charging the annual fee. As stated in your quote (and in the Act itself), that provision only applies to the initial credit line. Chase is misinterpreting federal law to our benefit.
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Old Feb 24, 18, 6:56 am
  #1789  
 
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Letters for each card state,"Too many accounts opened,not enough credit info on file,too many requests for credit or/reviews of credit".Is a call worth the effort to attempt reinstatment?He was well under the app limit.No MS.
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Old Feb 24, 18, 7:19 am
  #1790  
 
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Originally Posted by iamfrugal View Post
Letters for each card state,"Too many accounts opened,not enough credit info on file,too many requests for credit or/reviews of credit".Is a call worth the effort to attempt reinstatment?He was well under the app limit.No MS.
There's nothing to lose if he asks, but don't set your hopes too high.
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Old Feb 24, 18, 2:12 pm
  #1791  
 
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Worth applying for a Ritz Card? Iím way over 5/24, Iím at 16 cards, 14 credit, 2 charge, with 11 of them opened since Jan 2017. My credit lines across total over $215K, and I do use a lot of my cards, though some were just for grabbing a bonus. The only two cards I still want are Ritz Carlton and Hyatt for now. Should I go for them or just lay low for a while? I want to grab the ritz card in case it gets discontinued when chase/Amex announce the new card products.
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Old Feb 25, 18, 6:23 am
  #1792  
 
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Originally Posted by iamfrugal View Post
Letters for each card state,"Too many accounts opened,not enough credit info on file,too many requests for credit or/reviews of credit".Is a call worth the effort to attempt reinstatment?He was well under the app limit.No MS.
Thanks for this, however, two of us asked you what his 5/24 count was. That information would be helpful particularly given the text of each letter. Also, what does "well under the app limit" mean? Also, "No MS" on just the Ritz card, or "No MS" at all?
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Old Feb 25, 18, 6:28 am
  #1793  
 
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Originally Posted by matrixwalker2012 View Post
Worth applying for a Ritz Card? Iím way over 5/24, Iím at 16 cards, 14 credit, 2 charge, with 11 of them opened since Jan 2017. My credit lines across total over $215K, and I do use a lot of my cards, though some were just for grabbing a bonus. The only two cards I still want are Ritz Carlton and Hyatt for now. Should I go for them or just lay low for a while? I want to grab the ritz card in case it gets discontinued when chase/Amex announce the new card products.
Based on which thread you chose to ask this question in, it's clear you understand the risks. Shutdowns after Ritz/Hyatt apps don't seem to be anywhere near widespread, but they are happening.
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Old Feb 25, 18, 7:56 pm
  #1794  
 
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Originally Posted by iamfrugal View Post
My partner just had all of his Chase accounts shut down a few days ago. The only thing that was done ,IMO, to cause it was reducing a recently opened Ritz Carlton cc credit line to $1500. Apparently a letter is on it's way to explain the details of the shutdown. Replies to secure messages were vague and nothing was revealed.He held only a few fee free cards with Chase and no MS or large amount of UR points. Just bad luck or? Comments?
How recent was the application? This may have just been a chase anti-bustout shutdown. Did he recently have any cards' statements close with large balances?
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Old Feb 26, 18, 11:26 am
  #1795  
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Most of the thousands of us have a [redacted] ton of credit line spread over several banks; we could "bustout" if we had a mind to. I opine that the bustout calculation that banks supposedly apply to its customers is little better than witchcraft. Speaking of which (note the play on words there ), bustout shutdowns are like burning someone you suspect of being a witch. If you're right, you get rid of a witch. If you're wrong, meh. Yeah, bustouts happen. But there's no accounting for how many shutdowns stop a bustout―or abuse a customer with no such intention. Meanwhile, Chase says "meh."

Last edited by StartinSanDiego; Mar 6, 18 at 9:18 am Reason: vulgarity
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Old Mar 4, 18, 12:41 pm
  #1796  
 
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I could bust out too, with $215K of credit limit plus a no limit Amex Plat. Only problem is there isn’t enough [redacted] I’d actually want to buy to go bust out. Largest end of month balance I’ve ever had was $10,500 but that included over $9000 of reimbursable expenses.
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Last edited by StartinSanDiego; Mar 5, 18 at 8:27 am Reason: Redacted vulgarity
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Old Mar 4, 18, 5:14 pm
  #1797  
 
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Originally Posted by matrixwalker2012 View Post
I could bust out too, with $215K of credit limit plus a no limit Amex Plat. Only problem is there isnít enough crap Iíd actually want to buy to go bust out. Largest end of month balance Iíve ever had was $10,500 but that included over $9000 of reimbursable expenses.
LOL, I assure you that your Amex Plat DOES have a limit. While I understand your thinking and the wording, "no pre set spending limit" I promise you there is a point they would shut you down or not approve a charge.
These cards also have means now to track your spending and credit usage in virtually real time. If you go from $0 balance to $100k overnight and try accessing that remaining $115k to "bustout" you may be shocked to find stuff getting declined.
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Old Mar 4, 18, 11:21 pm
  #1798  
 
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Originally Posted by HawkeyeFlyer View Post
LOL, I assure you that your Amex Plat DOES have a limit. While I understand your thinking and the wording, "no pre set spending limit" I promise you there is a point they would shut you down or not approve a charge.
These cards also have means now to track your spending and credit usage in virtually real time. If you go from $0 balance to $100k overnight and try accessing that remaining $115k to "bustout" you may be shocked to find stuff getting declined.
Good thing there isn't enough [redacted] out there in the world that I actually want that would make me want to bust out

Last edited by StartinSanDiego; Mar 5, 18 at 8:28 am Reason: Redacted vulgarity
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Old Mar 5, 18, 8:19 am
  #1799  
 
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Is it usual for Chase to frequently SP credit on a new cardmember and if so, at what point does Chase stop pulling SP so frequently?
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Old Mar 5, 18, 8:48 am
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Originally Posted by SteveT View Post
Is it usual for Chase to frequently SP credit on a new cardmember and if so, at what point does Chase stop pulling SP so frequently?
Yes they almost always do soft pulls on new customers for 3-6 months. For most customers they continue to do them 1-2 times a year. It may slow down but anything may trigger a new SP.
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