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Chase closed all 11 of my credit cards with them !!

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26 minutes ago, MunsyBuns16 said:

Looks like OP is not liquid, or else the cards would've been PIF monthly.

And for inventory purchases, also likely illiquid themselves. in this strange pandemic environment, means that if the OP's business folds, Chase would be with a lot of stuff that might be a pain to sell. Not worth the risk of loss to Chase.

 

I suspect Chase has the L3 data to see what is being purchased. 

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Posted (edited)

One of your first mistakes was dealing with Chase, especially to this degree, in the first place.  Of all the TARP banks, Chase is generally the most likely to take adverse action, however in your case, I don't blame them.

 

So lets see, almost half a million in total credit with a low FICO score? Of your total credit portfolio, 50% of all cards are with Chase along with 39% of your total credit lines, way too much concentration with one lender, regardless of who they are, you needed much better diversification.

 

There is a significant reason why utilization is such a major component of your FICO scores and you were running a high level of aggregate utilization at 55% and a staggering 113% overall utilization on just your Chase cards.  In addition to the Chase utilization, it sounds like you were also carrying these balances with no real pay downs or PIF activity.  And you really have to ask why Chase shut you down? Your profile reeks of risk, especially in light of the "new normal" of our decimated shutdown economy. 

 

Unless you pay off all those Chase cards ASAP, your aggregate utilization is going to skyrocket and your FICO's will tank! You DO NOT want balances reported on closed cards!

Edited by Rogue

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On 7/1/2020 at 12:28 AM, AlexR said:

Greetings,

 

I recently had 11 Chase credit cards closed. Seven were personal, and four were business cards. The combined lines were 186k. The balances on them were 211k. My overall utilization was 55% and overall credit lines were 474k. The credit scores at the time were around 700 each, and average age of accounts was 10 years. I had 22 total accounts.  I was paying close to $3k in interest monthly. A few days before the closures, I added four authorized users on three of the cards. I assume this may have triggered it. In total, I have spent over $15,000,000 on Chase cards in the last 10 years.

 

In summary:

-My total open accounts went from 22 to 11.

-My average age of accounts went from 10 years to 6 years.

 

 

These are my questions:

 

1.      What would be the reasons why an institution such as Chase would take would such drastic measures without first discussing any possible issues directly with the customer?

 

2.      Are there any state or federal regulations that banks need to follow when terminating relationships?

 

3.      If banks do use rules and guidelines, are these rules and guidelines internal or can they be known by the public?

 

4.      If the rules are internal, is there any state or federal regulatory agency that reviews the rules to make sure they are legal?

 

5.      If there is, how can the public know that the government agencies are actually doing their job?

 

6.      Has any of you had something similar happen to you?

 

 

Any answers, tips, or comments are greatly appreciated.

 

I think it was your banking relationship that prevented Chase from shutting you down sooner.

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And, if OP could've paid the cards off monthly (as stated in the MyFico post), why didn't he? Chase is not one to play with regarding prolonged high utilization.

 

I don't see the point in paying thousands of dollars in interest monthly on credit cards for business purposes. It doesn't make sense to me, especially if the CC spend is primarily on inventory (illiquid assets) to begin with. It's a ticking time bomb.

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Posted (edited)
2 hours ago, hegemony said:

GHOST!

Wouldn't you ghost too if you just wanted to start a whining session and instead you got logical answers and recommendations? 

Edited by shifter

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20 hours ago, shifter said:

Wouldn't you ghost too if you just wanted to start a whining session and instead you got logical answers and recommendations? 

I'm not sure if OP was just a ghost, a less than savvy businessperson, a scammer looking for free advice, or a troll. Perhaps a combination? Someone must not have told OP the CB advice is to always PIF.  Prior to the statement closing date. Except for $2 on one account, if you want to. 

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1 hour ago, swimmingwithsharks said:

I'm not sure if OP was just a ghost, a less than savvy businessperson, a scammer looking for free advice, or a troll. Perhaps a combination? Someone must not have told OP the CB advice is to always PIF.  Prior to the statement closing date. Except for $2 on one account, if you want to. 

OP seemed legit but like a businessman taking high risks. Clearly not highly profitable if at all or would not be paying high APR interest. Probably looking at some way out of potential negative consequences of line closure and hoping to find examples of folks that have had some success in similar circumstances. He's been operating for quite a while so it would be quite concerning to me if I was a Chase underwriter looking at his credit reports that he appears to be just squeaking by. Exposure is way too high. Especially under the current circumstances. I fully understand Chase's decision and would likely have closed him sooner.

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On 7/1/2020 at 7:58 AM, AlexR said:

That right is there, but just because it is their right to do it, does not make it right. My wife may have the right to divorce me without any reason, but it would not seem "right" if she does. If there was a reason, her action would seem more right. Same concept with banks.

This isn't a hypothetical scenario that gets debated in a 100-level business ethics class.  

 

This is governed by the contract you have with Chase.  Read your account agreement.

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On 7/2/2020 at 2:01 AM, hdporter said:

Please keep this thread going ... I return home late Friday night and it might be fun to settle in with a little popcorn.

 

2 hours ago, cv91915 said:

This isn't a hypothetical scenario that gets debated in a 100-level business ethics class.  

 

This is governed by the contract you have with Chase.  Read your account agreement.

 

Gee, I had no idea I held that kind of persuasion with you, cv ...

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I doubt Mr. Ghost is coming back.  
 

Either after filing BK they chopped off his Internet service, or else there's no Internet in his prison.  I see no other options for him.  

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