Chase just set a dangerous precedent; it encourages nonpayment of debt, they also threw responsible cardholders under the bus.
On Thursday, Chase Bank made the shocking decision to “forgive” outstanding credit card debt of its Canadian cardholders as part of the U.S. bank’s move to exit the Canadian credit card market.
Chase no longer gives out credit cards in Canada as they closed that part of the bank well over a year ago. They could have sold the debt and made a small amount of money off of it (pennies on the dollar owed) or they could forgive the debt, which they did.
I realize it would have taken more time and money to collect the debt; however, forgiving debt is a terrible policy for them and the entire banking business. It sets an example for debtors not to pay up. Chase just did a great disservice to responsible citizens.
The US-based bank, part of the firm JPMorgan Chase & Co, announced in March 2018 that it was closing its two Visa cards and leaving the Canadian credit card market after 13 years.
It confirmed on Thursday that it was forgiving all outstanding debt owed by customers of its two Canadian credit cards.
Douglas Turner, a 55-year-old long-haul trucker living in Coe Hill, Ontario, was delighted to learn the bank had wiped clean his C$6,157 (£3,860) debt. “I was sort of over the moon all last night, with a smile on my face,” he told the Canadian Broadcasting Corporation. “I couldn’t believe it.”
Turner initially thought he had missed a payment when he received a letter from the bank. Instead, he found it had not only wiped out his debt but also reimbursed his latest C$300 payment.
Turner used his Amazon.ca Rewards Visa to buy electronics and supplies for his six dogs. When factoring his monthly interest on the card, he estimates he has saved more than C$7,500.
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Corporations don’t just throw away money like that. At some point, they are being reimbursed for all of that money. My guess is somehow American taxpayers are going to be paying the difference.
“It’s crazy,” he said. “This stuff doesn’t happen with credit cards. Credit cards are horror stories.”
Chase Bank has not disclosed how many Canadians had signed up for the cards or how much debt it had wiped out. [The Guardian]
Chase thought, in the long run, how cheaper it was to dismantle its credit card operations immediately rather than wholly or partially continue them until all of the cards were paid off. Just wait until Democrats forgive all the student loan debt. It will bring new meaning to “I feel like I am being rewarded for my irresponsibility.”
What bizarre business school justification is being used for this bank giveaway? Even though the accounts had been closed, the debts were still valid. I’m happy for those consumers. All too often the system is skewed against average folks.
However, this seems a tad overly generous. I remember when I lost my job a few years ago and when I asked my credit card companies, Chase being among them if there were any programs in place where I could get temporary relief I was told to go pound salt. Each company took the time to remind me that I had an obligation to pay my bills even though I was now having a tough time financially due to my unemployment.
Meanwhile, there are those customers who slaved to pay off their debt and completed the task just before Chase announced this debt cancellation. I wonder how they feel right now. Why is it that the Chase Santa Claus only delivers to Canada?
This piece originally appeared in WayneDupree.com and is used by permission.
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