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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 Apr 11, 14, 10:33 am
  #226  
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Originally Posted by Slickw View Post
Did you have a Chase checking account?
Yes.
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Old Apr 11, 14, 10:35 am
  #227  
 
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In my overly paranoid view, I think it would be best to move away all checking/savings activity from Chase or close it and bank at an institution whose CC portfolio doesn't interest you. No reason to give them more information than you have to.
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Old Apr 11, 14, 10:48 am
  #228  
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Do we have any consensus on shut down trigger behavior? It seems that it could be flagged for unusual spending in 2x or more categories, and also that it would get flagged for money laundering behaviors (high volume, quick payments, maxing out the credit line repeatedly in a billing cycle).

Some of the heaviest hitters that I know breezed through without a problem, using 5x categories that were maxed out.

I'm confused as to why a checking account would be a trigger... it would seem that they would want access to your interest free funds. Unless the double-take view into both MSing on Chase credit cards and dormant or MO funded checking accounts gives them too big a view on your finances.
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Old Apr 11, 14, 10:53 am
  #229  
 
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I've had 3k camped out in my Chase account for over a year now, and I only use the account to pay small balances on my Chase CCs. I suppose I could drop it and open an account at a local bank.
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Old Apr 11, 14, 10:57 am
  #230  
 
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Unscientific polling seems to indicate that the shutdown is initiated on the banking side. I can't seem to recall a shutdown of someone who did not have Chase banking relationship (of course someone will now post an example to prove me wrong...)

Whether it's the banking activities that triggers the review in the first place is a different matter. I know in my case, I was applying the good old advice of "don't sh*t where you eat", and was not depositing any MO's and/or CA's in nearly a year to my Chase account (and not that I had done much previously), but, it was nonetheless the bank accounts that were closed down first, and as a consequence the CC's followed about a week later.

Perhaps the 'trigger' is high UR balance... then they look into how you've earned those points, and if they don't like 'how', they'll then look for an excuse to to fire you as a customer, and, perhaps the banking side provides better ammunition to their cause?

Again, other than the observation that it seems it's those with Chase bank accounts that are getting shut down, this is all very much speculation here.
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Old Apr 11, 14, 11:33 am
  #231  
 
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I don't know for sure, but I suspect that many of these shutdowns are because of stricter KYC regulations on the banking side. JPMC and the other big banks are under increased pressure to make sure their clients are legit, and I know for a fact that the due dilligence process has gotten much more intense on the Private Banking/Private Wealth side.

These days, banks will literally cross-reference your name/SSN with databases from the SEC, OFAC, DOJ, FBI, etc. They'll even do Google searches on you. If something is off (pending felony criminal cases probably being among the worst red flags), that can be cause to drop you as a client. I'm not convinced this is some scheme to drop "unprofitable" credit card customers.

Many of you with JPMC banking accounts have probably received calls lately asking for additional information (income, net worth, etc.), which is also part of the "enhanced" KYC process. Not answering these questions could also be cause to drop you as a client.
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Old Apr 11, 14, 1:19 pm
  #232  
 
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Originally Posted by thehawk75 View Post
it was nonetheless the bank accounts that were closed down first, and as a consequence the CC's followed about a week later.
Got my CCs shut down, but not my checking account.
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Old Apr 11, 14, 1:53 pm
  #233  
 
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Originally Posted by hitman1420 View Post
Got my CCs shut down, but not my checking account.
Yet.
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Old Apr 11, 14, 4:23 pm
  #234  
 
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The closure risk seems to be clearly coming from the banking side 'risk prevention' depts and not the CC side. But once flagged it all falls.

What the different experiences tell me is that the 'risk prevention' group are running systematic soft pulls against an algorithm and identifying accounts for review. Low usage on Chase doesn't matter. (Mintcilantro and TheHawk's cases both back this up) It is what else they will see on your credit report:

1) Total CL to stated income.
2) # of lines extended.
3) Total credit currently used.
4) Frequency of new account creation.
5) Average lifetime of accounts.

All of which are easy to fall foul of when doing multiple AOR, or holding more cards than what is typical for most consumers (around 7, I believe). Any of these are considered irregular activity and represent risk. And they're being much stricter that ever before.

Based on learning from FT I don't bank with Chase and have no intention of starting, even with $2-400 signing bonuses on offer.


Originally Posted by thehawk75 View Post
What irks me on this whole thing is, aside for a few GC's at OM during their promotions (when I could even find any on the shelves), is I haven't even done any AOR with Chase in nearly 2 years. I've actually paid AF on the Marriott, IHG, IB/IP cards too.

And... no MO deposits to Chase accounts either. I am a heavy MSer, but, not with Chase. I've kept pretty much clean relationship with them. So, if they're ready to close down my account... for simply only using my cards in 5X categories with minimal MS in the last 8 months... then... I kind of have a feeling I'm just a number in a much larger purge going on.

I'd recommend any who have a high UR point balance and have done 'any' MS (no matter how small) to consider sending a great number of those UR points to a safer home.
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Old Apr 11, 14, 4:24 pm
  #235  
 
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My shut down is similar to many here. My full post (and thread) is here.

PMs have been sent. To answer general questions, I had had checking/savings earlier (closed savings 6 months ago, checking 2 months ago) but what triggered the shutdown was a soft pull after a fraud alert (spend on a mostly unused card during CVS feeding frenzy).

I've had 2 conversations with Chase, and they haven't closed the door completely. Any feedback would be appreciated, and I can report full details here if necessary.
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Old Apr 11, 14, 4:38 pm
  #236  
 
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There is definite increase in focus due to KYC.

In general there is only a small relationship between the banking side and UR/CC. They are managed quite separately.

Originally Posted by thehawk75 View Post
Unscientific polling seems to indicate that the shutdown is initiated on the banking side. I can't seem to recall a shutdown of someone who did not have Chase banking relationship (of course someone will now post an example to prove me wrong...)

Whether it's the banking activities that triggers the review in the first place is a different matter. I know in my case, I was applying the good old advice of "don't sh*t where you eat", and was not depositing any MO's and/or CA's in nearly a year to my Chase account (and not that I had done much previously), but, it was nonetheless the bank accounts that were closed down first, and as a consequence the CC's followed about a week later.

Perhaps the 'trigger' is high UR balance... then they look into how you've earned those points, and if they don't like 'how', they'll then look for an excuse to to fire you as a customer, and, perhaps the banking side provides better ammunition to their cause?

Again, other than the observation that it seems it's those with Chase bank accounts that are getting shut down, this is all very much speculation here.
Originally Posted by bribro View Post
I don't know for sure, but I suspect that many of these shutdowns are because of stricter KYC regulations on the banking side. JPMC and the other big banks are under increased pressure to make sure their clients are legit, and I know for a fact that the due dilligence process has gotten much more intense on the Private Banking/Private Wealth side.

These days, banks will literally cross-reference your name/SSN with databases from the SEC, OFAC, DOJ, FBI, etc. They'll even do Google searches on you. If something is off (pending felony criminal cases probably being among the worst red flags), that can be cause to drop you as a client. I'm not convinced this is some scheme to drop "unprofitable" credit card customers.

Many of you with JPMC banking accounts have probably received calls lately asking for additional information (income, net worth, etc.), which is also part of the "enhanced" KYC process. Not answering these questions could also be cause to drop you as a client.
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Old Apr 11, 14, 4:38 pm
  #237  
 
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Originally Posted by rdover1 View Post
The closure risk seems to be clearly coming from the banking side 'risk prevention' depts and not the CC side. But once flagged it all falls.

What the different experiences tell me is that the 'risk prevention' group are running systematic soft pulls against an algorithm and identifying accounts for review. Low usage on Chase doesn't matter. (Mintcilantro and TheHawk's cases both back this up) It is what else they will see on your credit report:

1) Total CL to stated income.
2) # of lines extended.
3) Total credit currently used.
4) Frequency of new account creation.
5) Average lifetime of accounts.

All of which are easy to fall foul of when doing multiple AOR, or holding more cards than what is typical for most consumers (around 7, I believe). Any of these are considered irregular activity and represent risk. And they're being much stricter that ever before.

Based on learning from FT I don't bank with Chase and have no intention of starting, even with $2-400 signing bonuses on offer.
So the banking side is able to check your credit report?
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Old Apr 11, 14, 4:47 pm
  #238  
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Originally Posted by ClearlyANewb View Post
My shut down is similar to many here. My full post (and thread) is here.
Hmmm-- interesting reading. It seems rare to get so much info from a CSR. It does make sense that a fraud alert triggers -a soft pull-triggers an account review.


Hope you get your accounts re-instated.
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Old Apr 12, 14, 2:20 am
  #239  
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Originally Posted by ClearlyANewb View Post
My shut down is similar to many here. My full post (and thread) is here.

PMs have been sent. To answer general questions, I had had checking/savings earlier (closed savings 6 months ago, checking 2 months ago) but what triggered the shutdown was a soft pull after a fraud alert (spend on a mostly unused card during CVS feeding frenzy).

I've had 2 conversations with Chase, and they haven't closed the door completely. Any feedback would be appreciated, and I can report full details here if necessary.
I would guess that the use of MO's in the branch to pay your cc bill was likely a culprit
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Old Apr 12, 14, 7:28 am
  #240  
 
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Originally Posted by skibum7732 View Post
I would guess that the use of MO's in the branch to pay your cc bill was likely a culprit
Sorry for being unclear. I never went that route, although I had plans for it once I had maxed out other avenues (and easy CVS routes died). We'll see what happens.
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