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Chase forgives all credit card debt for Canadian customers

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  • Chase forgives all credit card debt for Canadian customers

    https://www.msn.com/en-us/money/comp...ers/ar-AAFA2of

    Talk about enabling irresponsible behavior this takes the cake. Lucky for those people with heavy debt loads letting them off the hook Scott-free.

  • #2
    What a bunch of hosers
    Gunga galunga...gunga -- gunga galunga.

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    • #3
      I can't imagine what would cause a major bank to withdraw from a major market like Canada, much less to forgive all outstanding debts... Honestly, I figured it was a false story until I found it reported somewhat widely across the media. They're not just leaving Canada...they're running scared for the hills! Also interesting is what has not been stated in any of the stories that I've seen -- any numbers about how many accounts they closed, the total value of the debts forgiven, or why in the world they're abandoning what is almost certainly a highly profitable market. Particularly remarkable was an executive who said Canadian debtors should "Consider it a gift." There's no free lunch....so it makes me wonder what else is going on.

      Me? I'm often the suspicious type, so my first guess is that they've come to some sort of agreement to exit the market in exchange for escaping some form of civil/criminal litigation or penalty. Quite simply, this is bad business...so it stands to reason that some other perceived threat to the bottom line makes it more palatable to leave such revenues on the table. I dunno....but I won't be surprised when, likely years down the line, it comes out that this is some form of tactical retreat to avoid a big loss.
      "Praestantia per minutus" ... "Acta non verba"

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      • #4
        For sure, something is going on that the initial press reports aren't covering. I find it hard to believe that Chase would simply abandon a profitable line of business.

        So either:

        a) it is not profitable

        or

        b) they were forced by regulators in Canada and have managed to keep it quiet.

        james.c.hendrickson@gmail.com
        202.468.6043

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        • #5
          I find it very odd as well. Like weren't they earning any money on these? Why would you just write it all off? This is not a normal business decision.
          My other blog is Your Organized Friend.

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          • #6
            Originally posted by james.hendrickson View Post
            For sure, something is going on that the initial press reports aren't covering. I find it hard to believe that Chase would simply abandon a profitable line of business.

            So either:

            a) it is not profitable

            or

            b) they were forced by regulators in Canada and have managed to keep it quiet.
            I doubt it's the former, and fully expect that it is some form of the latter. Typically when a bank wants to end an unprofitable credit line product, they simply stop opening new accounts, perhaps close existing accounts, and let it lie. Current debtors still have to repay their debts -- to forgive them entirely is even LESS profitable! Getting their hand forced in some way is all that really makes sense to me.

            Side note, I wonder how that'll work for the individuals with debts forgiven... I know typically, in the US, when a debt is written off/forgiven, the individual is taxed on the amount of the forgiven debt. Does Canada do the same? Might pinch some people to have a $10k credit card balance paid in payments turn into a $2k tax bill due in full.
            "Praestantia per minutus" ... "Acta non verba"

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            • #7
              Unbelievable! They can cancel my debt any day now as well! I had three cards with them and got one paid off and now working on the other two.
              Gailete
              http://www.MoonwishesSewingandCrafts.com

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              • #8
                Originally posted by james.hendrickson View Post
                For sure, something is going on that the initial press reports aren't covering. I find it hard to believe that Chase would simply abandon a profitable line of business.

                So either:

                a) it is not profitable

                or

                b) they were forced by regulators in Canada and have managed to keep it quiet.
                I wonder what is the secret?
                I am sure Canada might have adopted new regulations and rules but for chase to exit in such a hurry and want "all out" by just forgiving all debt by Canadian customers.

                I wonder if it was a deal to cover some bad behavior by Chase. I hope the truth comes out but until then I would think twice about doing any business with them.

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