Recently, Chase decided to close my brother's credit card account down. He first opened his credit account in 2004 with Providian. Because of the 2008 Wall Street fiasco, Chase recently took over Providian. My brother never missed a payment, never went over-the-limit, and kept his account in great standing. Why did the company close down his account then?
Chase claimed that they had the right to close down the credit card. They don't have to warn a customer. Does that mean we have the right to not pay our bill? My brother has great credit. He always pay his bills. The representative told him that she closed down the account because he wasn't applying for new accounts. Surely, that doesn't make any sense whatsoever. Why would they require a customer to apply for 2-3 accounts a year to obtain more credit?
She outlined the following rules of credit:
- Keep credit card balances below 50%
- Apply for 2-3 accounts a year
- Pay your credit cards on time
- Keep accounts below the limit
- Avoid having too many small accounts
- Don't close down credit cards after paying them off
My brother followed all of those rules except applying for more accounts. He has Capital One accounts, ones that have been open for 11 years. They never decided to just close down a account without warning you first. The only warning came in the form of letter, which claimed they have decided to close down the account. After arguing with Chase, the close was reopened.
Be very careful in what credit cards you open. Providian was an awesome company. Chase made a $3 billion profit last quarter because they are an unethical company.
Would you want to dine at a restaurant that refused to serve you, but never gave a reason as to why they were denying the service? What if you were pulled over and the officer told you that he was going to tow your car because your license was revoked without you knowing so? While driving is a privilege, we have a right to know.
There is no way we can feel comfortable about having an account with a credit card company, especially when they just decide to close it down for no apparent reason and without no warning.
Chase is a poor company. I will avoid opening a Chase credit card. My brother liked his Providian account, but is contemplating whether to close down his Chase account.