Chase has announced that all owners of a Chase Canadian credit card will have their debt forgiven. Last year J.P. Morgan Chase Bank announced it would be leaving the Canadian market and accounts were closed in March. It’s not clear how much debt Chase is actually forgiving. Normally in situations like this card issuers would sell the entire card portfolio including existing accounts and debt to another card issuer but in this case Chase didn’t do that. Any payments that were made from July 27th, 2019 onwards will also be returned to customers and accounts will be reported as having a balance of zero.
Comments now closed as nothing productive is happening in the comments section.
Perhaps Chase is suffering from Trump Derangement Syndrome.
What would the account on the credit report say?
AFAIK, If they are forgiving it, should say $0 balance, paid in full, closed by creditor. Which there is no adverse effect to the credit report or score… If Canada rules are same as US.
I’ll just tuck away this anecdote for when I have an account closed due to discontinued operations.
And, hmm, maybe a reason to favor credit cards from international banks with a small presence in the country?
Nice in theory…. highly unlikely you will get that lucky.
I am carrying $40k+ balance on a Chase card… dear Chase, when can that be forgiven?
When you are dead.
Death doesn’t forgive debt. Your estate will still owe Chase. And if you live in a community property state, your spouse (and not simply your estate) could be responsible for any debt you leave.
Have you tried faking your own death yet? That’s what most people do.
Being responsible with debt sadly is not rewarded anymore. The idea of student loan debt forgiveness and credit card debt forgiveness makes me sick.
Why do you some that anyone with debt is irresponsible with it? For student loans, they may have just finished school and have a moderate balance as an investment into their education and had been making regular payments. Another person may have a balance at 0% from a card with a sign up bonus. Don’t jump to conclusions.
This is all based on Chase’s cost for managing the remaining small (at their scale) balances. There’s a very good chance Chase couldn’t even sell this portfolio to another lender to collect, so they just closed it to save THEMSELVES money.
Always assume the primary motivation of a financial institution is its own finances. This isn’t “debt forgiveness”, it’s “cleaning up the financial statements”.
Being responsible with debt is richly rewarded. Responsible borrowers pay zero on credit card debt and easily collect thousands per year in SUBs.
Irresponsible borrowers lose thousands in unnecessary interest, pay more for everything and lower their standards of living.
I guess I need to sit through your class on how to get thousands per year in SUBs, which is some abbreviation I can’t even figure out. I only have an 820 FICO, 0 debt, and I get about 1K/maybe 2K per year, at best, and stress on how to offload f-ing points for crap hotels and airlines I don’t use.
Sir, you’re on a website that is about churning credit cards to get ‘free’ money out of companies. Spare us all your self-righteous nonsense, please.
Really?
So how would you feel about a rich person’s brand that has had hundreds-of-millions (if not billions) of debt forgiven with no repercussions?
Just curious.
Wow. Looking forward to more details about this. I wonder if the debt in the books was smaller than what it would cost them to manage it.
Work under that assumption and you are very probably correct.
This has been all over r/personalfinance, r/creditcards, and related subreddits for a week or two. In every case I’ve seen, the full balance has apparently been forgiven.
I’ve seen a few Canadians posting who apparently had recently paid off the debt, RIGHT before it was all forgiven. I’d definitely be upset if I were in that scenario.
Just because some individuals paid it off doesn’t mean they didn’t take on another alternate form of debt. Some probably did a CC balance transfer, refi, or personal loan. I would find this a hard pill to swallow if I jumped through hoops to payoff a CC, and others are skating thought.
That’s just bad timing. Of course, in that case it sounds like those individuals have suffered from lots of cases of “bad timing” that put them in that situation (having lots of credit card debt).
Yeah, bad timing… I get that. But it would still sting. I would be upset none the less.
Think about the scenario – you paid in full by taking other debt – neighbor paid the bare minimum payment until Chase bailed out.
You were happy to get down to 6-9% interest on your new loan at the bank to avoid 18%. They got a free ride.
damn this is just gonna add fuel to the fire of the democrat socialists who think all debt can just be canceled at the snap of the fingers with no ramifications. “debt cancellation worked in canada”
This is a private company making a capitalist decision. Stop hyperventilating and calm down.
Chase is a private company? I thought they were a publicly traded company part of the JP Morgan Chase group and publicly traded under the JPM symbol.
Also, it doesn’t seem like a capitalistic decision, but then who knows?
Publicly traded is still a private company. (In contrast to government control)
Private as in not owned by the government.
Chase is a public company
Ha, debit is an illiberal, prob thinks conservatives and trump are racists
Everybody in the world thinks Trump os racist (except Trump supporters)
It’s the conservative-racists who think Trump is a racist. Except for, of course, the conservative-racists who think that Trump isn’t being racist enough.
I see you are shortsighted
Both sam and Debit are right. To some people, this Chase debt cancellation will feel relevant to this sort of policy, when it actually isn’t.
Sam has slightly changed screen names to make a similar point twice. He’s the only person here who seems unable to grasp the concept that Chase making balance sheet decision isn’t some sort of socialism.
Or maybe there are 2 people commenting with a fundamental lack of understanding regarding how corporations and large banks operate. It is the internet, after all.
You’re clearly a trumpian hypocrite so why don’t you explain how the massive debt that was erased for your criminal-in-chief was okay, but this is not?
Helping the average, debt-laden, American (or Canadian) is a terrible injustice, but when a lying, crooked, POS republican is forgiven everything is okay. Why don’t you rally against your overlord to pay back the hundreds of millions (maybe billions) of dollars he never repaid?
Hello Ford Canada? Do you take credit cards?
This is unfair to responsible people who pay their debts.
You’ll live
Well actually, if people who are into large scale debt forgiveness get their way, it is basically a death sentence for the USA. It’s game over. Period.
nah we’ll be fine. don’t fund the miltary for one year and we’ll break even.
Gave you a like – something worth looking up. Hopefully I interpreted the Feds chart right.
Fed Reserve May 2019 report – $618B in consumer credit card debt.
Wikipedia says the Military budget request for 2019 is $693B.
Yup. Checks out.
Fair is a place where hogs compete for ribbons
Ha! I like it!
Yeah, I’m tired of that argument. I’ve been responsible my whole life; nobody cares. Bring on the free sh*t.
oh haha, I hope it doesn’t come as a positive reinforce to anyone who was carrying over balances and paying interest though. Bigger price to pay in the long run.
I think you have a biased sense of fairness. Why are you mad that someone got something and you didn’t (or others didn’t)?
Wah wah wah, me, me, me.
Lol. Because someone else gets something, you are also entitled to something.
Also, it is a bloody bank. Where did you get any idea that fairness is a part of the equation.
Why do you some that anyone with debt is irresponsible with it? For student loans, they may have just finished school and have a moderate balance as an investment into their education and had been making regular payments. Another person may have a balance at 0% from a card with a sign up bonus. Don’t jump to conclusions.