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

Old Sep 6, 2019, 8:04 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/
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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 Dec 5, 2023, 10:45 am
  #661  
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Originally Posted by beachfan
My wife is getting shut down - first all personal last spring except Freedom, then all business except Ink Cash this fall, then they just came back of the freedom. Too many SUBs in too short a time plus perhaps making the spend in one or two months and then not using.

30 days after closure for the points. My question is how do you use something that isn't transferable (like Chase Ink Premier) after closing?
How many is too many cards over what period?
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Old Dec 5, 2023, 11:13 am
  #662  
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Originally Posted by beachfan
My wife is getting shut down - first all personal last spring except Freedom, then all business except Ink Cash this fall, then they just came back of the freedom. Too many SUBs in too short a time plus perhaps making the spend in one or two months and then not using.

30 days after closure for the points. My question is how do you use something that isn't transferable (like Chase Ink Premier) after closing?
Can you still redeem the points for travel or gift cards?

Too many SUBs from Chase, or did they look at her overall card signup activity and get worried?
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Old Dec 6, 2023, 6:04 am
  #663  
 
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Originally Posted by beachfan
My wife is getting shut down - first all personal last spring except Freedom, then all business except Ink Cash this fall, then they just came back of the freedom. Too many SUBs in too short a time plus perhaps making the spend in one or two months and then not using.

30 days after closure for the points. My question is how do you use something that isn't transferable (like Chase Ink Premier) after closing?
It would be very helpful to the community if you shared some of the parameters around this shutdown (that is, after all, exactly what this thread is for) so that others have awareness and might be able to evade a similar fate.

I don't have the Ink Premier so I'm not sure what you can do there unless they allow you to redeem for actual cashback and/or actually purchase some travel through the travel portal (but having never but shutdown, I'm not sure what the close you off from doing in your account)

Regards
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Old Dec 6, 2023, 2:16 pm
  #664  
 
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Originally Posted by scubadu
It would be very helpful to the community if you shared some of the parameters around this shutdown (that is, after all, exactly what this thread is for) so that others have awareness and might be able to evade a similar fate.

I don't have the Ink Premier so I'm not sure what you can do there unless they allow you to redeem for actual cashback and/or actually purchase some travel through the travel portal (but having never but shutdown, I'm not sure what the close you off from doing in your account)

Regards
unsure of what you are asking more than what Ive detailed in this and my prior posts in this thread.
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Old Dec 6, 2023, 2:36 pm
  #665  
 
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Originally Posted by beachfan
unsure of what you are asking more than what Ive detailed in this and my prior posts in this thread.
Well, I mean you didn't such much in this specific post other than "wife getting shut down." Which of course leads to lots of questions, as another poster asked (i.e. how many cards over what period of time, what might have lead to this, etc.)

If you already posted on this my sincere apologies. FT moves fast and it's impossible to remember what each individual post in a 650+ thread, particularly if you posted "last spring." (might have been helpful to link to your previous post if you already covered this)

Regards
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Old Dec 6, 2023, 2:51 pm
  #666  
mia
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Originally Posted by scubadu
....
If you already posted on this....
Begin reading at post 613: Chase Shut Downs & Credit-Card Account Closures: Data, Tales & Speculation 2019-on
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Old Dec 6, 2023, 3:16 pm
  #667  
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Originally Posted by scubadu
Well, I mean you didn't such much in this specific post other than "wife getting shut down." Which of course leads to lots of questions, as another poster asked (i.e. how many cards over what period of time, what might have lead to this, etc.)

If you already posted on this my sincere apologies. FT moves fast and it's impossible to remember what each individual post in a 650+ thread, particularly if you posted "last spring." (might have been helpful to link to your previous post if you already covered this)

Regards
Agreed, I typically don't scroll back through 600 posts expecting to find details from 6 months past. To refresh our recollection:

Churn was probably the wrong word, she just took out the cards, made the sign-on bonus, and then kept the card for the free night award. She hadn't cancelled one due to AF in several years. But once she hit signup bonus, then no spend on the two old ones cancelled (they didn't cancel her Freedom Flex which we use modestly).

See took out 2 biz and 2 personal in Feb/Mar, with one biz and one personal with Chase this year and no Chase in the prior 24 months. . 4 non-chase biz card approvals in 2022, no personal applications.


As noted at the time, the best guess is that Chase shutdown due to a bustout concern, as there are no indications of SUB abuse or manufactured spend. It is not uncommon to sock-drawer cards after we qualify for the SUB. Some even cancel well before the next AF. Another possibility is that Chase decided there was no "real" small biz to justify the # of accounts, particularly with 4 non-Chase biz accounts in 2022.
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Old Dec 6, 2023, 3:25 pm
  #668  
 
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Originally Posted by scubadu
It would be very helpful to the community if you shared some of the parameters around this shutdown (that is, after all, exactly what this thread is for) so that others have awareness and might be able to evade a similar fate.

I don't have the Ink Premier so I'm not sure what you can do there unless they allow you to redeem for actual cashback and/or actually purchase some travel through the travel portal (but having never but shutdown, I'm not sure what the close you off from doing in your account)

Regards
A total of 5-6 Chase cards in 2023 (personal and businesses combined); and as I said in my last post, made SUB in a couple months (w/o MS) and then no further use.

A previous post mentioned I got the SUB even though the statement date was after the shutdown date on a personal card.
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Last edited by beachfan; Dec 6, 2023 at 5:46 pm
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Old Dec 6, 2023, 3:43 pm
  #669  
mia
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Originally Posted by Boraxo
....typically don't scroll back through 600 posts ....
Understood, but there is no need to scroll to find previous posts by a specific member in a specific thread. Use Search this Thread > Advanced Search > Search by Username ...
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Old Dec 7, 2023, 4:25 am
  #670  
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Originally Posted by beachfan
My wife is getting shut down...
Sorry to hear that. For the sake of thoroughness, please consider answering the What happened? questions in the wiki. Thank you.
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Old Dec 7, 2023, 9:00 am
  #671  
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Originally Posted by mia
Understood, but there is no need to scroll to find previous posts by a specific member in a specific thread. Use Search this Thread > Advanced Search > Search by Username ...
I dont know about others, but I just didnt see any reason to research the posters history of posts based on their recent post. Why would I assume that part of the story is in an old post from seven months ago? A link back to the old post or a summary of events would have made it easier for readers to understand what happened.

In any case, is it really a shutdown if Chase closes some unused cards and not others? Seems like they didnt ban the OPs wife outright, just didnt want to keep those unused lines of credit open? Barclays sent me a letter recently saying they would close my Arrivals card since I hadnt used it in ages and that I could prevent closure it by using within 30:days. But I think I have had sockdrawered cards closed in the past without warning. Dont recall which bank - was before my FT career.
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Old Dec 7, 2023, 9:15 am
  #672  
mia
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Moderator explanation

Originally Posted by notquiteaff
. A link back to the old post or a summary of events would have made it easier for readers to understand what happened.....
Agreed, but the poster came here to ask a question, not to be cross-examined. Rather than berate a poster for omitting context, we can find it ourselves, and I explained how to do it, because that's part of a moderator's role. I think we (collectively, not you personally) need to have more empathy for people who find themselves in this situation.

Last edited by mia; Dec 7, 2023 at 10:26 am
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Old Dec 7, 2023, 7:30 pm
  #673  
 
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Originally Posted by notquiteaff
I dont know about others, but I just didnt see any reason to research the posters history of posts based on their recent post. Why would I assume that part of the story is in an old post from seven months ago? A link back to the old post or a summary of events would have made it easier for readers to understand what happened.

In any case, is it really a shutdown if Chase closes some unused cards and not others? Seems like they didnt ban the OPs wife outright, just didnt want to keep those unused lines of credit open? Barclays sent me a letter recently saying they would close my Arrivals card since I hadnt used it in ages and that I could prevent closure it by using within 30:days. But I think I have had sockdrawered cards closed in the past without warning. Dont recall which bank - was before my FT career.
The business cards were not sock drawered (unless you consider one - two months without activity a sock drawer).
When Citi closed a card for inactivity, it was easy to reopen it. When I called Chase, it was a wall of "we are not saying".
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Old Dec 7, 2023, 7:35 pm
  #674  
 
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Originally Posted by RNE
Sorry to hear that. For the sake of thoroughness, please consider answering the What happened? questions in the wiki. Thank you.
I've given quite a bit of information already - see posts 613, 616 and 687. You can assume I did nothing more out of the ordinary than disclosed.

I am not comfortable with the level of detail requested by the Wiki in a public forum. Someone can PM me a specific question or two if they desire.
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Last edited by beachfan; Dec 7, 2023 at 7:41 pm
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Old Dec 7, 2023, 8:07 pm
  #675  
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Originally Posted by beachfan
A total of 5-6 Chase cards in 2023 (personal and businesses combined); and as I said in my last post, made SUB in a couple months (w/o MS) and then no further use.

A previous post mentioned I got the SUB even though the statement date was after the shutdown date on a personal card.
I suspect this is pushing the envelop with Chase. With credit card debt once again at historic high, banks are nervous on any behavior that looks like burst out pattern.

As for no spend after getting the sign up bonus, I do not believe it is the flag. Having large credit line on idle cards might be a flag for obvious reason. For those who reduce the credit line down to a few Ks, then sock-drawed those cards probably do not cause issue. Though periodically use the idle cards for small charges may not be a bad idea either.
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