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Chase Shut Downs & Credit-Card Account Closures: Data, Tales & Speculation 2019-on

Old Sep 6, 2019, 9:04 am
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Last edit by: StartinSanDiego
Chase Shut Down thread: (Archived version found here: https://www.flyertalk.com/forum/chase-ultimate-rewards/1526572-chase-closed-my-credit-card-account-s-consolidated.html]
There is a general Shut Down thread in the Manufactured Spend forum, found here: https://www.flyertalk.com/forum/manufactured-spending/1948543-2019-shutdown-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/
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
What happened?
When someone reports an account closure here, people are curious as to both the background on the Chase relationship and any/all potential shut down triggers. Please answer any relevant questions to give details. This could help figure out what happened or how you could proceed:
  1. Background: Do you have both Credit Cards and Banking accounts with Chase? Tell us your history at Chase. What do you feel the trigger could have been? Does anything unusual (from the bankers perspective) go on in your accounts? How long have you had a banking relationship with Chase? Please explain.
  2. Ultimate Rewards: Did you transfer UR points to someone with a different address? Different last names? Did you sell UR points to someone?
  3. Potentially suspicious activities: Do you use multiple sources to pay your credit card bills, such as Walmart Bill Pay? Do you ACH using multiple accounts? Did you recently wire transfer large amounts into or out of your Chase accounts?
  4. Bonus Earnings: Approximately what percentage of your charges earned less than 5x points in the past 12 months?
  5. Other possible Triggers:
  6. Did a Chase or non-Chase bank recently close one of your credit cards?
  7. Are you using up a large percentage of your credit line or cycling the credit lines on all Chase and non-Chase credit cards?
  8. Is your total credit line with Chase much higher than with other banks?
  9. Did you apply for many credit cards or other forms of credit recently? 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? Do you mimic a "bust out" profile? (Someone maxing out credit prior to filing bankruptcy)
  10. If you have a Chase checking account how much did you typically deposit in money orders per month, if any?
  11. Did you recently start spending a lot more with Chase than in typical months?
  12. Is your monthly balance frequently close to your credit limit?
  13. Did you abuse the Chase Refer a Friend system?
  14. Did you use/abuse Chase's new checking/savings sign up bonus incentives?
  15. Did you bounce a check for a credit card payment?
  16. DId someone at your address get shut down also?
  17. Do you have a Chase mortgage or other accounts at Chase? Are they in good standing?
  18. Did you dispute or return items on your credit cards? How many times?
  19. Have you recently needed back office help on your accounts, which may have triggered a review or called attention to something?
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Chase Shut Downs & Credit-Card Account Closures: Data, Tales & Speculation 2019-on

Old Jan 20, 2020, 8:59 pm
  #181  
 
Join Date: Jan 2017
Posts: 126
Originally Posted by Happy
I believe one can request a Chex report just like the credit report - the poster can pull his report and find out if there is any derogatory remarks on it. If the accounts at the regional bank were closed by himself when he returned home, instead of closed by the bank, there should not be blemish mark on the Chex.

What is more worrisome is the Early Warning System report. That is where the poster should check to make sure.

<<EWS was created more than 25 years ago as a joint effort by several major banking institutions, including Bank of America, Capital One, Chase, and Wells Fargo. Today, its network includes about 2,500 financial institutions, government entities, and payment companies. That means that when you apply for a bank account, the bank may pull your EWS report and may deny your application if it finds negative EWS items.>>

https://letmebank.com/early-warning-services/

https://www.keypointcreditservices.c...-services-ews/

https://www.earlywarning.com/consumer-information

It is a much lesser known report banks also use. I only learned about such reporting system existed when several years ago someone posted on FT about Wells Fargo closed his newly opened bank account, citing the decision was based on information found on EWS.
Thanks Happy, I appreciate the links, I will most certainly check what's on both my Chex and EWS before making any decision.

And you are correct, I'll be closing my 2 accounts before they do so. The only thing I can imagine them doing is the inevitable SAR to FinCen, (which I couldn't care less about).

Cheers
Chris58 is offline  
Old Jan 20, 2020, 10:12 pm
  #182  
 
Join Date: Jan 2017
Posts: 126
Originally Posted by cheaptom
My wife has had a CSR for a few years and I've been an authorized user. So far, no problems. I've been over 5/24 for some time, but it's getting close to where I'll be 0/24, and I'm thinking of applying for my own CSR. But as I get closer, I'm wondering if it's even worth it. The initial points bonus will be nice (I've never had a CSR before), but I don't know if I'll get the value of the AF. For both of us, the AF costs will be $1,100 (-$600 travel credit) = $550.

I'm also interested in the United Club Card, since Club membership is a good value to me and is not included on the CSR. But about 5 years ago, I had the United Explorer Card and received the bonus miles.

If I do get the CSR or the UCC, will that raise red flags about Chase closing our accounts? Thanks.
If your wife has the CSR and is keeping it, I can't think of any good reason for you to not just get the CSP, (10K higher SUB but $95 AF not waived the first year). AF costs $645 (-$300 travel credit) = $345/year, plus an extra 10K UR the first year.

I agree with what pallhedge says, (based on only the n/24 info you give). Just be aware that for the last 4 years or so Chase has become more risk-averse.

After they approve the initial app, (irregardless of whether it's auto or not), there will be a secondary review. At 0/24 you'll also have 0 inquires, (excepting auto or mortgage apps). Be aware that Chase is known to be Revolving Utilization sensitive.

The best, (and easiest), thing you could do to look low risk to Chase is to maximize the utilization part of your FICO scores before the app.

You do this by ensuring that only ONE revolving account reports a very low balance to the CRA's, with all other revolving accounts, (including any of your wife's that you're AU on), reporting a $0 balance.
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Old Jan 21, 2020, 8:10 am
  #183  
 
Join Date: Sep 2011
Posts: 1,857
Originally Posted by Chris58
...my Business and personal checking accounts at a smallish regional bank will be closed for suspected ML 2 days after I return...
Originally Posted by Chris58
I have to ask why I should be concerned about what Chex might have on file about me.
Am I mis-reading that first part?
pallhedge is offline  
Old Jan 21, 2020, 8:35 am
  #184  
 
Join Date: Jul 2009
Location: World
Posts: 1,645
Shut down about a year ago - no explanation provided, but typical of recent adverse action scenarios experienced by others last year - Chase approves new card, Chase reevaluates relationship, Chase closes new card & all other existing cards.

How much time is it worth letting pass before bothering with Chase apps again? 12mos? 24mos?
mster is offline  
Old Jan 21, 2020, 1:52 pm
  #185  
 
Join Date: Jan 2017
Posts: 126
Originally Posted by pallhedge
Am I mis-reading that first part?
Not really. I should note that the banker who informed me never even mentioned ML, That's my term. I just assume whenever a bank's compliance/risk department shuts down an account due to MO deposits beyond what they're comfortable with, that's the reason why.

FWIW, I did discuss this MS game with him before I ever started playing, but that was over 5 years ago.

I realize how it might seem odd for me to be so cavalier given my statement about ML, but there's 2 reasons why I'm not concerned.

1: The Bank's not going to close these accounts, I am.

2: Even if the bank has fired me for suspected ML, (as opposed to just not wanting to deal with perceived compliance headaches for an unprofitable customer), I can't visualize them making a derogatory report to a federally regulated consumer reporting agency based on a mere suspicion that they would have exactly zero chance of proving to be true.

It's not like this is bank fraud, (check kiting, forged/altered checks, Etc), or NSF's, overdrafts, negative balances unpaid, etc...

If they want to CYA with Federal Regulators the path is clear, SAR---->FinCen.

I appreciate your helpful advice and I thank you for bringing up the Chex issue because it's something I never gave any thought to. I also apologize if I seem to be argumentative as that's not my intent.

Based on what I've learned from you and Happy I've decided to wait one month after I close the accounts before requesting the free annual copy of my Chex and EWS report I'm entitled to. Anything derogatory from this closure should have posted by then.
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Old Jan 21, 2020, 3:09 pm
  #186  
 
Join Date: Sep 2011
Posts: 1,857
Originally Posted by Chris58
1: The Bank's not going to close these accounts, I am.

2: Even if the bank has fired me for suspected ML, (as opposed to just not wanting to deal with perceived compliance headaches for an unprofitable customer), I can't visualize them making a derogatory report to a federally regulated consumer reporting agency based on a mere suspicion that they would have exactly zero chance of proving to be true.
1: Ok, that wasn't clear to me from your OP. I thought they were waiting to give you an opportunity to move your money out prior to them closing.

2: I don't think it would be that specific. It would just say closed due to unfavorable relationship or something equally as non-litigious.

Bottom line, if there's nothing documented that Chase can see, you should be ok.
pallhedge is offline  
Old Jan 23, 2020, 9:21 am
  #187  
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Anyone receiving "pre-approval" and/or "pre-qualify" in online banking (still bank business) after getting shut-down with CC only?

If someone gets this, is this bank error? Or they will shut you down again after initial approval?
RedSun is offline  
Old Jan 23, 2020, 8:45 pm
  #188  
 
Join Date: Aug 2017
Posts: 1,606
In 2018, Chase shutdown my existing Ritz/Marriott/IHG cards because of applying for too many cards (I was lol/24). That is the only reason for shutdown I confirmed (no MS, no UR issues etc). Request for reinstatement was unsuccessful.

In 2019, I successfully opened a Chase checking and business account (still open for many months now).

However, I'm still not able to get approved for any Chase cards (with the denial reason being "unsatisfactory past relationship" or "we closed your accounts prior" - basically the automatic computer check which doesn't let my application go past the first step).

Has anyone been able to get this to overturn at all? The reconsideration departments of the cards can't seem to do anything about this one to override it, so I'm not sure who exactly to contact here? If someone was successful in such a scenario I'd appreciate how they managed to overcome the shutdown due to applying for too many cards.
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Old Jan 23, 2020, 9:14 pm
  #189  
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You should get a banker to apply over the phone. So you can get past the auto process. They would need to explain to the bank what is going on.
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Old Feb 2, 2020, 1:37 pm
  #190  
 
Join Date: Feb 2020
Posts: 6
Chase Shutdown after 48hrs

Hi there,


I'm relatively new to the thread, my apologies if this isn't displayed or put across correctly. I came across this thread after researching Chase shutdowns, reasons as to why and possible triggers.


My Situation:


I previously had a 2 Chase cards.


In Feb 2019 I had a Chase Freedom Unlimited with a fairly above average credit line. I did 2 balance transfers, roughly less than 5% of the credit line. It was opened Dec 2018 and was "shutdown" 2 months later. Between the 2 months I spent roughly 20% -30% of the line and paid it off each month before Feb 2019. I missed one payment due to a bank account freeze, and ultimately chase "shutdown" the account. I made a request for reinstatement, as they said I had 6 months to reinstate it. I was denied.


"NOT ENOUGH CREDIT INFORMATION ON FILE"


this was the only reason.

No excessive credit inquiries or revolving accounts are too low. Just that one statement. I paid off the card in full, no balance remained. I let my accounts on file age 5 months and re-tried the reinstatement request. Denied, same reason given.


I left it alone and waited almost a year. No inquiries. Just let my accounts age and got a CLI on other accounts later on in the year. UT was less than 2%.


So I saw recently my credit had improved, accounts had aged and my other limits had been increased to more than above average. I was in High to Mid 700's credit score range. And was given high approval odds via the website and other credit reporting platforms


So late Jan 2020 I applied for the Chase Freedom and Chase Sapphire Reserve Card ( same day inquiry) was denied for the Chase Sapphire Reserve card but no reason as to why, nor any letter received (yet).


However approved instantly for Chase Freedom with a way higher limit almost double my previous limit of the Chase Freedom Unlimited.


Thought it was a mistake, but low and behold I got the card expedited within 24hrs and then just didn't use it. I had no need to. Thought I would be smarter this time and only use it for small things. (Thought the excessive 20-30% spending triggered the closure last time).


Then when I decided to use it, for gas, literally $25 it was declined at the store with "not authorized" not "declined", thought maybe I had a block on it due to the amount, maybe just had to clarify it and had the block removed? Wrong.


Called and was told the account was closed 4 days prior. So I had this account for 2days.... interesting.

I asked if I could be put through to "special" customer services/escalations to further discuss. I've heard of negotiations since the prior closure. Was on the phone maybe 20 minutes, She was really nice, but unfortunately was informed the account was closed due to:


"NOT ENOUGH CREDIT INFORMATION ON FILE"


NO OTHER REASONS WERE GIVEN.

Further investigated with represensitive because we were confused as to why they would approve the card for 2 days and then suddenly have it "shutdown". Both myself and rep agreed that this must've been an oversight/mistake as we both went through my history with chase and my credit report and could not see any indication for the reason displayed and made a request to have it reinstated as she tried to do it straight away but said it required a higher authorization with the reason displayed. Said it will be assigned to a case manager and they will call me with the outcome.


I have not had an update yet on the status. However did receive the closure reason letter, again only said:


"NOT ENOUGH CREDIT INFORMATION ON FILE"


My question(s):


What are the odds of Chase reinstating my account?

AND

If not reinstated will the account report on my file and damage my credit? (Bear in mind it is $0 balance).


If the account is reinstated can the credit limit be reduced? (again I believe the credit limit may have been a mistake).


Thank you


any answers or advice is appreciated.
LittleMissAnnon is offline  
Old Feb 2, 2020, 1:47 pm
  #191  
mia
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Welcome to Flyertalk.

It may simply be that once Chase had a problem with you (missed payment) they do not want to open another account until they see that other lenders have opened accounts for you -and- that you are actually using those accounts.

Originally Posted by LittleMissAnnon
I missed one payment due to a bank account freeze,....
What dies this mean, specifically?

What is the opening date of the oldest account on your credit report? How many total accounts (open or closed) are on your credit report? Are these accounts reporting balances?
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Old Feb 2, 2020, 1:55 pm
  #192  
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@LittleMissAnnon
This is typical of Chase behavior.

Chase is very sensitive to a lot of things. Missing payment with new account can lead account shut-down. Then your account or even SSN can be marked for this.

When you applied for new cards, Chase approved you the first one. Then on second look, it saw you applied for another card and had the previous record. So it shut down the new card too.

I'd advise you to stay away from Chase for a year or two. Then apply again, but one card at a time.
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Old Feb 2, 2020, 2:10 pm
  #193  
 
Join Date: Feb 2020
Posts: 6
Originally Posted by mia
Welcome to Flyertalk.

It may simply be that once Chase had a problem with you (missed payment) they do not want to open another account until they see that other lenders have opened accounts for you -and- that you are actually using those accounts.



What dies this mean, specifically?

What is the opening date of the oldest account on your credit report? How many total accounts (open or closed) are on your credit report? Are these accounts reporting balances?

I see, thanks so much for the reply.
as for the missed payment, it technically wasn't reported late or missed, just when the autopay took my payment my bank account was frozen at the time. I reprocessed it and paid off the account in full.

Though I have a limited file
My oldest account was opened in Jan 2014 was a store card, with an average limit of $5000. Open. 0% UT.

Then 2 Capital One Bank Cards in April 2016 totalling $5500. Both are closed. $0 Balance reported.

Then the Chase Freedom Unlimited in 2018 at $7900. Closed. $0 Balance reported.

Then the Chase Freedom Card in Jan 2020 at $14.4k. Closed, pending possible reinstatement, not reported on credit file.

But nothing else, as of 02/02/2020 I have only the chase inquiry on file from Jan 2020. And UT is at 0%.

Let me know your thoughts. Thanks.

Again any answers or advice is appreciated.
LittleMissAnnon is offline  
Old Feb 3, 2020, 8:57 am
  #194  
 
Join Date: Sep 2011
Posts: 1,857
Originally Posted by LittleMissAnnon
I missed one payment due to a bank account freeze, and ultimately chase "shutdown" the account.

So late Jan 2020 I applied for the Chase Freedom and Chase Sapphire Reserve Card ( same day inquiry)
There are only a few ways to invite a shut down by Chase. You're guilty of 2 of them: Insufficient funds or in your case a frozen bank account and applying for 2 Chase cards on the same day. I think you should move on from Chase.
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pallhedge is offline  
Old Feb 3, 2020, 9:13 am
  #195  
mia
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Originally Posted by LittleMissAnnon
....bank account was frozen at the time.....
Both are closed....
Closed....
Closed,...
But nothing else
Again any answers or advice is appreciated.
I still do not know what a "frozen" bank account is, but I see what Chase means when they say NOT ENOUGH CREDIT INFORMATION ON FILE. You have no open accounts, aside from one store account. You need to open a card with another issuer and use it on a regular basis for a year or two, so that Chase (and other issuers) can see the activity.
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