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Chase closed all my credit cards today

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biophase

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So I'm trying to pay for lunch and my card gets declined, my 2nd card is declined too, so I pay with cash. I call up Chase and they tell me that they have closed all of my credit cards personal and business. Although they don't say this to my face I think I know what happened.

I charge about $10,000 a month on my credit cards and on Friday I called one of them to see if I could get the APR lowered from 13.xx%. If not, I was going to start using a 7.5% card. The lady said that they can't lower APRs anymore but she thought that the assistance department, the department that you call if you can't make payments anymore would have the authority to lower my APR.

So I talk to the guy and he says that his department is for people who can't afford the payments and that if they lower the APR the card would get closed. I didn't want that so I said thanks and hung up.

So naturally I am thinking that this guy made a mistake and accidentally closed my accounts. I call Chase and they said my account went under review this morning. Hmmm, coincidence?? I bet not. After review they deemed me not credit worthy to have available limits totaling about $75,000.

My credit score probably isn't the best right now since I do have an upside down home that is in short sale mode. I talk to this dick over at Chase who gives me some moral shit about honoring your mortgages. So even though I have never missed a credit card payment and run over $120k through them annually, they decide that they don't want to do business with me anymore.

So I went and opened up a few business accounts today and M&I Bank. I need to get my electronic payments moved over to them before I can close my 8 business and personal accounts at Chase.

Oh yeah, moral of the story, don't put all your banking eggs in one basket. Luckily I still have more credit cards.
 
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Russ H

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Sorry to hear you went through this, Bio. I'd flip if that happened to us.

Given the new laws/regs that don't allow CC companies to hit their card holders w/hefty fees, we're going to see a LOT of reshuffling in the next year or so.

Having some plan B's (other cards) will be very helpful to get through this.

The rules they are a'changing . . .

-Russ H.
 

Luke12321

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I use to work for a credit card company that was lending to subprime customers only. They started closing cards before the media had really caught on to the entire situation. The customers we had were so bad that we actually stopped calling them to even collect. I guess the CEO's realized it cost more to pay someone to call these bums on the chance they may pay a few bucks.

Not saying you are a bum! haha Credit card companies are struggling, getting regulated even more. FDCPA is coming down hard on companies which makes it harder to collect past due accounts.

Who has to pay for all of the regulations? Only the guys who worked hard on building credit to begin with. Anyway....hope you enjoy your new bank relationship and it works a bit smooth. I will stop ranting.
 

bflbob

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Bio:

I had the same problem about a year ago with an Advanta card. I was late with one payment. Rate jumped to 35%, they cut my credit limit to less than I owed, and started calling me because I was now "over-limit". Two months later, they went belly-up.

Sucked, because they were a great card prior to that.
 
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andviv

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Similar situation...

I called them to ask them to send me replacement cards (the strip band thingy was not working fine and having issues with some readers) and they said they will do it.

A week later got a letter saying my acct had been reviewed and they closed it.

This happened with BoA.

They have a great incentive to do this these days... close the old accts that are bound to the old rules and you had more right, and later they will offer you new credit cards were you accept their new terms that circumvent the new rules and regulations.

So, moral of th story? Do not call them or your account will go under review and your credit will be limited, acct closed, or rates increased.

Sorry you are going through this. And good thing you had other credit cards with other banks.
 

Bobo

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Yeah they are fun to deal with. We ran some up last year and when you pay them down to free up space, what happens? They cut your limit as punishment.

This isn't only the bank's fault from what I understand, the rules they have to follow make good, performing loans 'hurt' their viability in the eyes of the regulators.

Punish banks for issuing credit that is performing and ....Well, I am not a banking expert but banks profit by making solid loans that perform, discourage that and what happens?
 

MJ DeMarco

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Wow, if this isn't news from the trenches I don't know what is ... credit is getting tight and credit is needed to grow the economy. When people who are paying on time are getting hosed, it doesn't bode well for the future.
 
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andviv

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I believe somebody here already reported a bank closing their credit cards and then calling them a few weeks later to tell them they had gotten new credit cards with the same limits as the previous....

guess why?

the new agreement says you are OK with them doing whatever they want with your acct, effectively removing all provisions from the new law.
 

Jonleehacker

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Wow, if this isn't news from the trenches I don't know what is ... credit is getting tight and credit is needed to grow the economy. When people who are paying on time are getting hosed, it doesn't bode well for the future.

Smells like an opportunity to me, surely a free market (don't we still live in one?) will take care of an issue like this if banks deny credit to credit-worthy folks, someone must be able to come in and grab this business?
 

NoMoneyDown

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I believe somebody here already reported a bank closing their credit cards and then calling them a few weeks later to tell them they had gotten new credit cards with the same limits as the previous....

guess why?

the new agreement says you are OK with them doing whatever they want with your acct, effectively removing all provisions from the new law.

A similar thing happened to me ... I had a CC thru MBNA for years with a "lifetime" rate of 5.99%. It was xfer'd to BoA a few years ago. Last year they up'd my rate to 11.99% for no reason. Calling didn't help. I always maintained a small balance, so I paid it off and closed it out. A month ago, I get a letter - complete with two shiny new cards that looked like my old ones (i.e., same design) - asking me to re-open an account with them.

Now I know why.

Want some salt in that wound?
 
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biophase

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Sorry you are going through this. And good thing you had other credit cards with other banks.

Problem is that one of those cards is AMEX, can't use that everywhere.
 

andviv

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Problem is that one of those cards is AMEX, can't use that everywhere.
I've been getting a lot of invitations from Capital One, so it seems they are trying to target this audience and the void that is being created... although I think their terms suck, having large lines credit may be worth the $50 or whatever annual fees they charge.

A similar thing happened to me ... I had a CC thru MBNA for years with a "lifetime" rate of 5.99%. It was xfer'd to BoA a few years ago. Last year they up'd my rate to 11.99% for no reason. Calling didn't help. I always maintained a small balance, so I paid it off and closed it out. A month ago, I get a letter - complete with two shiny new cards that looked like my old ones (i.e., same design) - asking me to re-open an account with them.

Now I know why.

Want some salt in that wound?
Ah, so it was you! I knew it was something somebody here had gone through. Thanks for sharing.
 

Russ H

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rcardin

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I had something similar happen with WAMU before Chase bought them out. I payed a measely $2000 limit card off and got a letter the next month informing me the account was being closed. The reason: too many mortgages. I only had 2 and both were on time all the time. Not that I needed the card but still pissed me off
 

CactusWren

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Wow! This gives me a knot in the stomach...personally and for the economy in general.

I have had a couple of Capital One cards (no fees) for a few years and they have been good. Plus we do the mileage thing and that's pretty sweet for travelling.

Chase reminds me of Wells Fargo (story here: http://www.thefastlanetomillions.co...cy-trading/20461-educational-savings-ira.html )

Yeah the biz opportunity on this sounds like a great idea...
 

hatterasguy

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I think people depend to much on CC's. I pay with cash, I have one CC that I hardly use. I think the last time I charged on it was 3 weeks ago.

The interest rates on them is insane! Why would I want big limits if I'm paying 15% or more interest on it? I can get $50k or $75k if I need it with a much lower rate than that.


If anything this shake up is good long term. Having worked retail I have seen people with wallets full of cards and not $10 on them. Half are declined.
 
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Russ H

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I think people depend to much on CC's. I pay with cash, I have one CC that I hardly use. I think the last time I charged on it was 3 weeks ago.

The interest rates on them is insane! Why would I want big limits if I'm paying 15% or more interest on it? I can get $50k or $75k if I need it with a much lower rate than that.


If anything this shake up is good long term. Having worked retail I have seen people with wallets full of cards and not $10 on them. Half are declined.

Hat-

I typically use the card *everywhere*. It's a VISA-- NOT a debit card.

This allows me to carry NO CASH-- and to even pay for incidentals (groceries, fast food, etc) with it.

At the end of each month, we pay off the card.

There is NO INTEREST CHARGE whatsoever if you pay off your card each month.

Kinda like a free loan-- provided you always make sure you have the money on hand

(the CC companies are betting you won't-- that's part of their model).

Anyways, it works great.

And the biggest advantage: The CC company sends me a great record of my expenses each month, for free.

FREE = Provided I pay the card off every month! :D

-Russ H.
 

hatterasguy

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Well thats fine but most people don't. I find them to be very good for online purchases.

Also if you pay in cash their is no record of the purchase.
 

Russ H

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Well thats fine but most people don't.

Also if you pay in cash their is no record of the purchase.

Exactly. And since most everything I buy is tax deductible/expensible, having a record of that is essential.

Brings to mind a story I heard:

There is a lady who owns her own beauty salon. She wanted to buy her own place (instead of renting). But it was really hard for her to get a loan.

She never was able to do it.

Why?

Because so many of her clients paid her in cash that she got accustomed to living that way-- never declared the income, only declared what came in on credit cards (about 10-20% of revenues), and lived like a queen-- paying cash for everything.

Except that her credit rating was only so-so, and her income tax forms showed fairly low income.

So she could never get a nicer house, or buy any commercial property, or do any investing.

She just lived off the cash.

This is actually a true story. I know this person.

When we first met, years ago, she had WAY more than me.

Today, my wife and I have millions in net worth-- because we play the game-- we declare every dang penny that comes in here.

She continues to run her beauty salon, and take cash.

She owns nothing.

Moral of the story?

Is living under the table worth it?

Only if you don't want or need to do things that require you to show income.

Oh, and that staying out of prison thing? (for income tax evasion?).

I find the latter to be a great deterrent, for me.

I'd rather pay a few thousand more in taxes each year.

Than risk spending time in the pokey. :)

-Russ H.
 
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chadgerald

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Man that's too bad I can believe Chase would do something like that. I will bank with almost anyone else. I've tried to be partners with them 3 times over the past 8 years and each time they hit me with fee's or raise rates... So in the end your probably gonna be happy not to be working with them anymore. Good Luck
 

biophase

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So it takes me two weeks to get the official we closed your credit card letters from Chase. I got a stack of letters because I got a letter for each card that was closed and I also got a letter for each card as a response to my phone call afterwards. Luckily I actually opened each one up and read each letter all the way through. One of the reasons for account closure on a few of the letters said 'Sufficient credit available with us' which is odd since I have zero credit with them now.

The last letter I read says 'we are pleased to advise you that your account has been reinstated with a credit line of $20,500. In addition we will review your account quarterly for a possible credit line increase.'

So I guess it pays to read your mail. I was so pissed at them that I was about to toss all the letters because I thought I knew what they said. It would have been nice for someone to call me though because I already tossed all the cards away and closed all my Chase accounts. They basically lost a customer. It was nice of them to reinstate the card that had the highest interest rate and the highest annual fee.
 

andviv

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It was nice of them to reinstate the card that had the highest interest rate and the highest annual fee.
Similar situation over here... closed the 11% APR and offer me a 25% APR for the same amount. And under the new terms.

Maybe you can apply to other companies successfully now that they open a new one.
 
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darkjediii

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Hey guys, my first post here.. Chase did the same thing with my wifes and my own credit cards, although we both have over 700 credit.

I use the American Express Plum card for both my businesses and personal spending. you can defer the payment 30days and also get 2% discount on your bill if you pay early.
 

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