'It's crazy': Chase Bank forgiving all debt owed by its Canadian credit card customers

It certainly is crazy....but in a good way.

https://www.cbc.ca/news/business/chase-bank-amazon-visa-marriott-credit-card-debt-1.5239411

 

Makes you wonder why they are leaving the Canadian credit card market. Does Canada limit fees and interest?

 

I think it has more to do with market saturation. Loyalty cards are saturating the marketplace and people tend to gravitate to one or perhaps two specific cards. Entering the market and trying to get people to give up a card they are already invested in was probably more difficult then they anticipated. It was probably a poor decision to enter the Canadian Market without doing their homework. Just ask Target about this.

https://cba.ca/credit-cards

https://www.visioncritical.com/blog/successful-canadian-expansion

 

Probably cheaper for Chase to rid themselves of these few people on their books. Nowhere has it said how many CC clients there were. Just close it all down.

 

That’ll fix those smug “I always pay off my balance monthly” people!

 

Right? My company is starting a student loan repayment scheme to pay a portion of employees student loan debt each year for a fixed number of years - they are still working out the details. I guess I should have invested more money instead of aggressively paying off my student loans (at least the ones with low interest rates). Oh well, being debt free was really nice until I took out a mortgage.

 

The last figure I heard as an estimate for this was 50 to 100 million in total. Sounds like a lot but given that these were balances on cards that were already 18 months from the last active charge many of them were on high credit risks to begin with and in the end for Chase it was cheaper to just walk away. I had one of these cards as they were a decent reward card; never did carry a balance on it.

 

They've essentially left it a couple years ago. This is them getting rid of the last accounts still owing from then

 

Not really. A lot of people who just got their debt forgiven have likely already paid more than their original debt.

 

That’s great news...

I’m sure there’s a catch in there somewhere....there’s ALWAYS a catch!!!!