Rare

nomiiiii

On reddit.com/r/churning main page, look for "Shutdown Reports" link in the sidebar.

jedaero

blitzen

jl7895

In June 2016 I applied for and received a Chase Sapphire Preferred card. Since I had just moved from Canada to the US in 2015 and had not-so-extensive US credit history (my Canadian credit is excellent), I didn't receive an approval on the spot, but was approved after someone called in to check my details.

After receiving my card, I made a major purchase on it (~$8900 for vehicle repairs, at the official BMW dealership) in order to, yes, take advantage of the "50k points after spending $4000+ in the first 3 months" offer that the card was known for. The transaction was declined on the first attempt, but went through without issue after the mechanic tried it a second time.

The next day, I tried using the card again to discover that Chase has shut down the credit account. When I called customer service (I was unaware of the reconsideration line at the time, I might have been forwarded there but I'm not sure whether it was the same department), the CS rep informed me that the card was cancelled due to me not having long enough credit history, which triggered some sort of red flag. I gently pointed out that my credit history was checked as part of the approval process, and apparently they had no problem issuing the card to me with a 21k credit limit at the time, but to no avail. I decided not to push the issue too hard for the time being, and try again after I've built up some more credit history. Naturally I dutifully paid off the outstanding balance on the card even after the account was closed, and besides converting the points I rightfully earned to United miles after the Chase account was closed, I can't think of any possible angle from which I might be considered to have "burned" them.

Fast forward to today, almost exactly two years later. I applied for an Amazon Prime Signature Visa, and received the rejection in the mail stating that my application was declined due to "Previous unsatisfactory relationship with this bank". Since I now have pretty decent credit history (750 FICO, no missed payments or derogatory marks of any sort), and having learned of the reconsideration line, I figured I would give Chase another shot. I called into the reconsideration line, and was told they can't reconsider this particular application due to the reason it was declined; apparently the "previous unsatisfactory relationship" reason is automatically rejected for reconsideration. I asked if it was possible to look into a general Chase restriction against me, and they said they'll escalate and look into it further. A few days later I received a call and was told that due to having had a closed account in the past, the system automatically declined the application with this reason. Also, they can't look up whether the previous account closure was justified, since the information related to that account is no longer in their system. Lastly they told me that they can't do anything for this application or about the general restriction, but I was free to apply for another Chase credit card at my discretion. Which is clearly ludicrous because according to them, all applications will automatically be rejected with no chance for reconsideration due to an issue they can't resolve, and comes with a credit inquiry ding to boot.

So I seem to be stuck in a strange situation where there's no recourse to correct a situation I had no control over, and which was a result of neither abuse nor ill intent. If anything it was a mistake on Chase's part to approve credit for me, and then after the fact finding me unqualified for it when I actually tried to make use of it. To blacklist me due to their own mistake, and then offer no recourse for resolution, seems blatantly anti-consumer. This is also a story I've heard often enough during my research into this issue that I have to wonder how they're able to get away with having such broken systems that customers can end up in this ridiculous situation, and at the same time refusing to acknowledge that there might be a problem on their side and straight up stonewall customers who seek resolution.

What can I do at this point, besides informing people of Chase's unsatisfactory behaviour? Is there a higher authority to appeal to, another number to call, magical words to open up another part of the reconsideration rep's script, or even some way to talk to a person who can apply reason to the situation rather than what is essentially an automated phone script?

So far it seems like the only thing left to do is file complaints with the FTC and CFPB. There were some mentions that having a Chase bank account with a decent balance may help, but given how Chase seem to treat its customers I'm reluctant to even establish that relationship with them.

garykung

First - this is the master thread:

https://www.flyertalk.com/forum/chas...dated-145.html

Second - you may have a better luck if you consult with a lawyer than CPFB. CPFB might work in some extent. However, without knowing the detail (as you don't know anyway), it is difficult to tell what exactly happened and what can the CPFB referral do.

mia

jl7895's post has been moved into the thread helpfully linked by garykung.

Have you applied for a card issued by any USA bank other than Chase, and what was the outcome?

It's maddening when bank's abruptly reverse the decision to issue a card, but it's not illegal. Chase can decline to do business with anyone, and their decision need not be justified (provided it is not based on a prohibited reason).

freakflyer

Did you at least get your points for hitting minimum spend? And sad that they may have lost a good long term customer.

Happy

Dont waste your time with CFPB which has not effective in the past and basically is being disbanded under the current administration.

In your situation it may be worthwhile to write directly to the Chase Executive Office, and if you like, copied all the high ranking executives who oversee credit card business. You can find the names in Yahoo finance, just look up JPM stock symbol and the company profile - all the worthy officers names and offices are listed there.

joe_miami

It's not normal banking behavior for a person to apply for a credit card and then charge $8,900 to it on Day 1. That, plus the thin if non-existent credit history, obviously triggered a review.

The time to address this was two years ago, with a letter to the executive office, but that's still the way to go now, if you want to be a Chase customer again. If not, there are hundreds of other banks out there. Why waste your time on a grudge? Chase offers great benefits to its customers; no one is going to boycott Chase because some guy who charged $8,900 on Day 1 had his card closed after a review.

Good luck.

joe_miami

Lawyering up is horrendous advice. Chase and other banks can close accounts for just about any reason. A former customer who shows up with a lawyer is going to remain a former customer.

garykung

Avoiding politics, the problem with CPFB is, like its predecessors, has no mechanism to help consumers informally resolving any disputes in between, while at the same time, CPFB is working on its own agendas in enforcement, i.e. ignoring the complaints.

davidlhanson

A little over a month ago, I applied for and received a Chase Sapphire Reserve card. We had been planning some trips to southeast Asia and after I learned about CSR, I decided it would be a good idea to get one before I actually bought the tickets.

I charged over $12,000 for 2 business class seats on Delta 2 days after receiving the card. The charge was initially turned down by Verified by Visa. I called Visa and convinced them that I, and not someone else, had made the airfare purchase. Visa then approved the purchase and it went through. Then 15 minutes late someone from Chase security called to also verify that it was me who made the charge.

A month later I made a $13,000 for another business class trip to Asia for my wife and I. It was instantly approved.
I think that it could be normal behavior to charge large amounts initially because it make no sense to pay $450 for the card if you are not going to do substantial charging of travel expenses. I have been a Chase credit card customer (IHG, Marriott, Freedom, Amazon) for at 12+ years - never a late payment and every balance paid in full each month.

joe_miami

I'm guessing you weren't a brand new Chase customer with a very short credit history.

krazykanuck

there is no guessing! the OP literally wrote, it's even in your own quote: