Chase Strikes Again!!!!!!

[phillmolly]

So Chase closed my DH's CC with no warning!!! We found out when we went to put the down payment for our trip to Jamaica in Feb and the card wouldn't go through.

They told him it was becasue he didn't carry a high enough balance! Well, duh, that happens when you pay your card in full every month! It was an old WaMu card. They also said it was because he didn't have any other accounts with Chase. Well, I used to work there and let me tell you, there is no way on this earth I would ever have any type of bank account with Chase. Chase is only there to make money and they will do it anyway possible. Part of the reason I left is because they wanted me to sell Home Equity LOC as overdraft protection for a checking account!

Anyways, we were still able to pay for our deposit, I just put it on my debit card.

 

[LovinPooh]

that just sucks

 

[rhiansmom]

I got my letter today also... and also an old WaMu account. I have a Chase Visa which got the letter a few months ago after I paid it off in full. They kept it open with a $500 limit. Um ok whatever.... good bye Chase!!! (well not totally as I want the benefits of the Disney Visa so I'll continue to charge a bit, carry a small balance and pay monthly)

 

[cattrix]

Yep they just did this to me also, I don't carry a balance on my Disney Visa, really only use it for Disney Vacations and deposits. I logged on to check my Disney Rewards and noticed that my credit limit went from 10k to $500, boy was I fumed....but now I'm calm again. I called them and told them it was their loss, I highly doubt they cared though

I was getting ready to transfer my upcoming vacation to my card and had to regroup and figure something else out too.

I had heard they had started that and was kind of ready for it to happen, but I was a little shocked when it did.

Yeah no more Chase!!!

 

[Disneyliscious]

I soooooo hope Chse goes under. I have never used them and never will. They are cutting off their nose to spite their face.

On another note.....

Never, ever have more than one account with the same bank. Their new "sneaky" plan is that if you have a car or a home financed through them....along with a checking account, credit line...whatever...and you are late on your payment....they will go into your checking account and take the payment out (or put it on your credit line). Its in their "fine print". This happened to my father with Regions Bank and my aunt with Bank of America.

 

[DisneyAndRedSox]

If people complain enough maybe Disney will change the bank for their CC. I know LL Bean switched from BoA a year ago.

 

[eeyorethegreat]

So far our Chase is still open and we haven't used it for going on a year. I was going to close it but decided aside for credit score reasons, I would see how long it took theem to close it. It wasn't a WaMU before though maybe that has something to do with it? I am amazed at the amount of credit that has been thrown at us it is just unreal. I can see how people so easily got into a financial mess. The kicker is as much credit as these companies are willing to give us we are not high income earners. Glad that it worked out for the OP in the end!

 

[akenneson]

I don't know what they are thinking. If they close cards and/or cut limits back drastically how in the world do they expect to make any money. Especially now they are charging astronomical rates to good customers who will just stop using their cards.

 

[Targsmom]

I don't know what they are thinking. If they close cards and/or cut limits back drastically how in the world do they expect to make any money. Especially now they are charging astronomical rates to good customers who will just stop using their cards.

They make their money on people who cannot pay their bills. People who max out their cards and pay the minimum every month. They don't make any money off of people who pay on time.

Suze Orman had a blurb about this. She used to suggest that people pay off their credit cards. But now she doesn't.

The sad reality is that the credit card industry is taking actions to protect themselves with no regard to your needs or how good you have been about paying your bills on time. The problem is that most credit card companies are either reducing your credit limits, raising your interest rates and are even paying you to close down your account. Many of you are even finding that when you do finally pay off your credit card debt that the issuing credit card company of that card is closing that card down as fast as they can so you cannot ever charge on it again. You did everything right, and yet still you could have your credit limit reduced, which can have a negative impact on your credit score.

I also found this interesting article from the Consumerist

 

[disney1990]

We have a Chase account (Day 1) and have always paid it off every month. We probably run $1,000-$1,500 a month in charges through the account.

Should I be expecting them to close out our account?

 

[n2mm]

We have a Chase account (Day 1) and have always paid it off every month. We probably run $1,000-$1,500 a month in charges through the account.

Should I be expecting them to close out our account?

I am wondering the same thing. We are exactly like you. We only use it to make big purchases (DVC and dues) and pay it off immediately. I guess I should start watching it. Glad I have a backup Visa with my FCU.

 

[SnowandMittens]

Just as a reminder, as a person who works in a credit card call center, it's not the people you are talking to at first that made any decision. A lot of people (I'm not with Chase, but we do have credit line decrease programs that are going into effect) think we have some sort of control over the situation. Just ask to speak with a Supervisor, because they have SO much more leeway with the cards. Telling us that you are dissapointed in the company/ will never do business with us again/ etc... isn't going to make an impact. It's when a higher - up employee hears it.

 

[polineedyan]

its true, theyre in it for the money..their letter to me about interest rates (default) started, "In order to maintain the profitability of your account.."
Their sole purpose is the money.

 

[mskayjay]

"They make their money on people who cannot pay their bills. People who max out their cards and pay the minimum every month. They don't make any money off of people who pay on time."

That is not exactly accurate. They make money from a vendor everytime you use your card by means of the transaction fee charged to the vendor.

 

[JLKennedy]

On another note.....

Never, ever have more than one account with the same bank. Their new "sneaky" plan is that if you have a car or a home financed through them....along with a checking account, credit line...whatever...and you are late on your payment....they will go into your checking account and take the payment out (or put it on your credit line). Its in their "fine print". This happened to my father with Regions Bank and my aunt with Bank of America.

I'm not sure the facts are completely accurate here.

 

[fkj2]

its true, theyre in it for the money..their letter to me about interest rates (default) started, "In order to maintain the profitability of your account.."
Their sole purpose is the money.

Well, yeah, that goes without saying.

But since that IS their business, I'd like to know the REAL reason they're curtailing credit on "good" credit risks. Makes no sense to me. You'd think they'd want to retain--even encourage--consumers who pay back/on their bills regularly to continue using the card. They still make money on transaction fees. In the current environment, if I could get 5% just on the fee, that's not such a bad return.

What's smoldering below Chase's surface???

 

[Targsmom]

"They make their money on people who cannot pay their bills. People who max out their cards and pay the minimum every month. They don't make any money off of people who pay on time."

That is not exactly accurate. They make money from a vendor everytime you use your card by means of the transaction fee charged to the vendor.

oh.. good point!

 

[C.Ann]

They make their money on people who cannot pay their bills. People who max out their cards and pay the minimum every month. They don't make any money off of people who pay on time.

Suze Orman had a blurb about this. She used to suggest that people pay off their credit cards. But now she doesn't.



I also found this interesting article from the Consumerist

"They make their money on people who cannot pay their bills. People who max out their cards and pay the minimum every month. They don't make any money off of people who pay on time."

Exactly..

That is not exactly accurate. They make money from a vendor everytime you use your card by means of the transaction fee charged to the vendor.

A mere drop in the bucket - compared to what they make from the people who carry a balance or are late on payments.. Which customer do you think they would prefer to have? The one that makes them the most money..

They're a business - and a shady one at that.. Their goal is is make money - not loan it to people for next to nothing..

 

[minnie_michelle]

I guess I'm a minority, because I love my Chase credit card. It has the lowest APR of all my cards. I am currently in debt payoff mode and just transfered two higher balance cards to my chase card to take advantage of one of their offers. I bet they love me, but I am interested to see what happens when my balance is paid in full come next April.

 

[Piglet'sPal]

I have a Chase Disney Visa with a $20k limit. I am getting ready to put my vacation on it come November....I sure hope they don't lower my limit to $500!! What kind of advance warning do they give you on this?