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Chase closed my credit card account(s) [Archived 2013-mid 2019]

Old May 15, 2014, 8:16 am
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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:
  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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Chase closed my credit card account(s) [Archived 2013-mid 2019]

Old Apr 1, 2014, 11:56 pm
  #166  
 
Join Date: Nov 2011
Location: SFO/SJC
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Originally Posted by UA Fan
With whom? What do you mean by the bolded?
Aor in early jan had these five cards:
chase fairmont
citi hilton reserve
us bank carlson biz
amex blue
barclays arrival

However the citi aa 100k card had not made a splash. When it appeared in late Jan, I applied and got approved. I applied for another in mid March and got approved as well.

So this resulted in 7 new cards in 3 months, which can be excessive and cause trouble. I took the chances b/c of citi aa 100k.


From my discussions with other FTers and the nature of the letter, it seems that chase had a beef with the AP deposits and quick pay person to person transfers and hence they decided to close my checking a/c. Once they decided to close checking, they followed suit and closed the CCs as well. That's why I still had access to UR transfer feature.

So I'd say activity in chase checking should also be avoided and instead conducted in CU or institution without strong CC portfolio
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Old Apr 2, 2014, 5:43 am
  #167  
 
Join Date: Nov 2009
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Originally Posted by newcomerR
Hi, a new lurker here. I was told by Chase Fraud Prevention (not operational loss) that they will close my checking account. From what I read above it seems likely that they will eventually close my credit cards too... Can someone please explain the sequence of typical Chase shut down event?

Specifically,
A) Is it 10 'calendar' or 'bank business' days after the checking account freeze that the checking account will be closed?
B) Do credit card freezes start on the day of checking account closure? Or some days later?
C) How many days do they give for me pay the card balances without interest?
D) UR points will not be redeemable at any point after card freezes - correct?

Thanks!
Not sure about details, but I would transfer UR points asap. My timeline was:

- got a letter about my checking account closure,
- waited about a week,
- submitted points transfer request
- few days later got a letter about credit cards

that transfer was never completed.
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Old Apr 2, 2014, 8:49 am
  #168  
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Originally Posted by newcomerR
D) UR points will not be redeemable at any point after card freezes - correct?

Thanks!
Transfer points out ASAP.
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Old Apr 2, 2014, 11:16 am
  #169  
 
Join Date: Sep 2005
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Originally Posted by mintcilantro
I had read all the warning posts and had moved majority of MS activitiy away from chase checking. What probably happened was my high office supply spend caught their eye and the manual review uncovered my MS.
That seems like a reasonable assumption.

Originally Posted by mintcilantro
I'll never know what happened but that's what I think. I think most people be careful of following activities
- AoR with too many cards. Unfortunately I opened 7 cards in last 3 months (due to citi aa 100k appearing just after my 5 app aor).
- pay off balances as soon as you can (I did this with chase but not with other issuers)
- spending more than CL esp in bonused categories
- checking account activity that can give any whiff of MS (AP, quick pay, cash/MO deposits, payments to multiple CCs)
- payments to Chase CCs in cash/MO or from accounts not in your name (e.g. BB that's not your own).


I think if you are doing only one or two of above, it will not likely cause problems. But if you get caught with multiple of those, you could get in trouble.
That seems reasonable, too.

The (my) bolded items above make me wonder...

1. Pay off "as soon as you can" - do you mean, make multiple payments to reduce your balance during your billing cycle (short cycling) - to allow yourself to effectively "go over" your CL? I have heard this may be a red flag.

I would make the distinction between paying multiple times during a cycle (paying down balance) and then quickly charging more (increasing balance) - which I think they may look worrisome to them - and simply sending an early payment or two so that when the statement closes, your balance is not a high percentage of your CL.

2. "Spending more than CL esp in bonused categories" - I think that having a consistent and disproportionate spend in high bonus category is already a red flag. If you do that AND exceed your CL (I assume by doing the "short cycling" mentioned above), then I would not be very surprised that bells go off in their Bad Cop division.

3. checking account activity that can give any whiff of MS (AP, quick pay, cash/MO deposits, payments to multiple CCs) - My question on this is the cash aspect. I do, occasionally, pay off a Chase CC at a local branch in cash (on the order of maybe $1000 in twenties). It had not occurred to me that they might sniff anything funky from that. I generally do not pay Chase CCs via Bluebird or other check payment services, and never pay from anyone else's accounts. I wonder how much risk the occasional cash payment is - I'm guessing that, by itself, not much.

I do not have a Chase checking account - I think I'm gonna keep it that way. The wife *does* have one though (we auto-pay our Chase mortgage out of that). Hmmm.

Ultimately, I think you're right, that it's a combination of things that probably got you, not any single item.

Thanks for sharing the data points (and I hope you find solace over in the Citi world).
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Old Apr 2, 2014, 1:20 pm
  #170  
 
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Seems we haven't (and will probably never) figure out the association with having a Chase checking account. I have this $400 offer from chase to open a checking and savings account sitting here on my desk. I feel like its a siren luring me into the account closure rocks that I must resist.
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Old Apr 2, 2014, 1:22 pm
  #171  
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Originally Posted by exmike
Seems we haven't (and will probably never) figure out the association with having a Chase checking account. I have this $400 offer from chase to open a checking and savings account sitting here on my desk. I feel like its a siren luring me into the account closure rocks that I must resist.
$400? Wasn't it $150?
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Old Apr 2, 2014, 1:34 pm
  #172  
 
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Originally Posted by UA Fan
$400? Wasn't it $150?
$200 for a checking account, $200 for a 15k deposit in to a savings account for 90 days. I'd hop on it in an instant if not for this thread. Of course, my MS on chase cards is very very moderate.
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Old Apr 2, 2014, 3:01 pm
  #173  
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Originally Posted by exmike
$200 for a checking account, $200 for a 15k deposit in to a savings account for 90 days. I'd hop on it in an instant if not for this thread. Of course, my MS on chase cards is very very moderate.
That is a lucrative offer. Our area only ever saw a $100 and then $125 for $10K saving account. One bonus per calendar year. Been doing this the 3rd year now.

I cannot see paying other CCs out from a Chase checking account is an issue - UNLESS your checking account is always just an in and out conduit, without any "meaningful" balance ever sits there for more than a couple days. That I suspect would raise issue as it has all the looks of laundering. While checking account by definition is "Demand Deposit" Account, meaning you can withdraw any time at will, thanks to the Patriot Act that the banks are required to watch a myriad of account activities to sniff out money laundering, banks really DONT like to see a lot of rapid in and out in a checking account.
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Old Apr 2, 2014, 3:16 pm
  #174  
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Originally Posted by Happy
That is a lucrative offer. Our area only ever saw a $100 and then $125 for $10K saving account. One bonus per calendar year. Been doing this the 3rd year now.

I cannot see paying other CCs out from a Chase checking account is an issue - UNLESS your checking account is always just an in and out conduit, without any "meaningful" balance ever sits there for more than a couple days. That I suspect would raise issue as it has all the looks of laundering. While checking account by definition is "Demand Deposit" Account, meaning you can withdraw any time at will, thanks to the Patriot Act that the banks are required to watch a myriad of account activities to sniff out money laundering, banks really DONT like to see a lot of rapid in and out in a checking account.
How about opening a checking account, signing up for direct deposit and then transferring it to my main bank? I also just got the $150 offer and it's tempting to open one.
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Old Apr 2, 2014, 3:38 pm
  #175  
 
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@mintcilantro:
Have you checked your credit reports to see when was the last time Chase did a soft pull? If you can share that info and the days it took since the soft pull to account closure, it might help others.


Originally Posted by skibum7732
they can perform soft pulls anytime they want and most cc issuers do this periodically
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Old Apr 2, 2014, 3:52 pm
  #176  
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Originally Posted by UA Fan
How about opening a checking account, signing up for direct deposit and then transferring it to my main bank? I also just got the $150 offer and it's tempting to open one.
They may still call you about why you do the transfer out, why not do the DD at the bank you transfer out. If you have a very good reason for that, you should be fine. (This is based on personal experiences and the checking account actually is pretty idle other than paying Chase CC and very occasionally other CCs. Checking account was opened 3 or 4 years ago on the 25K CO bonus offer.)

Banks are subject to the "know your customer" requirements. You really need to substantiate your activities should you be called to the carpet.
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Old Apr 2, 2014, 3:56 pm
  #177  
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Originally Posted by Happy
They may still call you about why you do the transfer out, why not do the DD at the bank you transfer out. If you have a very good reason for that, you should be fine. (This is based on personal experiences and the checking account actually is pretty idle other than paying Chase CC and very occasionally other CCs. Checking account was opened 3 or 4 years ago on the 25K CO bonus offer.)

Banks are subject to the "know your customer" requirements. You really need to substantiate your activities should you be called to the carpet.
I would love to not do DD to Chase, the reason I need to do DD is to avoid the monthly fee. And I would only do $500 and send the rest of the paycheck to my main account. That way Chase won't know how much I make.
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Old Apr 2, 2014, 4:00 pm
  #178  
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Originally Posted by UA Fan
I would love to not do DD to Chase, the reason I need to do DD is to avoid the monthly fee. And I would only do $500 and send the rest of the paycheck to my main account. That way Chase won't know how much I make.
Then in this case, just let the $500 sit there and only do transfer out or pay Chase cards once every few months when it adds up to $1500. $500 a month sitting idle is not going to break you finance I assume. Chase has thousands of our money in each of our accounts (both me and husband have our own individual biz/personal checking and saving accounts there though saving accounts are only for the cash bonus each calendar year.)
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Old Apr 2, 2014, 6:31 pm
  #179  
 
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Originally Posted by UA Fan
I would love to not do DD to Chase, the reason I need to do DD is to avoid the monthly fee. And I would only do $500 and send the rest of the paycheck to my main account. That way Chase won't know how much I make.
Ally Bank ACH to Chase. Then pay off some chase bills every month. Works for me.
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Old Apr 2, 2014, 9:23 pm
  #180  
 
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Originally Posted by rambo
@mintcilantro:
Have you checked your credit reports to see when was the last time Chase did a soft pull? If you can share that info and the days it took since the soft pull to account closure, it might help others.
It would be interesting to know if anything shows on his ChexSystems report and if so compare with the credit reports to see which was pulled first.
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