Chase Shutdowns Update: Algorithm Gone Wild Or Something Else?
Last week I wrote about a surprising trend of Chase shutdowns that seemed to be focusing on women. There were only 5 or 6 data points at the time but they were all clumped together in a short time span. I wasn’t sure if this was coincidence or something more. My thinking was maybe Chase tweaked their algorithm and it was negatively affecting women. Maybe it was weighing certain industries negatively that have a larger portion of women in the workforce etc. It wasn’t clear and the data points were limited. Since then a few of the data points have reached out to me and given me an update on their situation.
Chase Shutdowns Update
The accounts were shut down for a few different reasons. Some where for a ramp up in spending, others for too many recent accounts from other lenders and some for not having enough credit on file (whatever that means since they were approved). Chase told one cardmember that called in that they were doing a review of all accounts. That isn’t all that surprising with the current economic climate. Banks are looking for potential bust out risk and they don’t want to be left holding the proverbial bag.
A few people reached out to me that were caught up in this yesterday and said their accounts were reinstated after about a week. Many hadn’t had the chance to call into Chase to discuss the shutdown yet. A lot of these shutdowns were for player 2 accounts and we all know how much a battle getting them to call can be. Interesting enough, they were never informed of the reversal either, their accounts simply showed open again online.
What Is Happening Here?
This is a strange string of events. To have accounts get shutdown in a cluster and have them be heavily leaning towards women seemed odd. The fact that many of them were reopened within a day or two of each other, without doing anything proactive, is just as odd.
So what do I think happened? I can only speculate but I can think of two potential possibilities. My first thought is they updated their algorithm to weed out risky accounts and some wires got crossed. They could have caught on to the issue and noticed accounts were wrongly being shut down. Chase has been having some technical difficulties in other areas of late so this wouldn’t be out of the question.
Another potential thought I have is maybe they have started a more intensive financial review system. Something more along the lines of American Express’ set up, where they freeze all accounts to review them. Normally Chase only freezes the account in question while doing the review, your other cards remain active during the process. This seems a little less likely because notices were sent out about the shut down and it wasn’t worded as a financial review.
I am glad to see many of these accounts get reopened, especially since they were done without much intervention, if any, from the cardholders. If you were caught up in the recent shut downs then there still may be hope. Ryan shared his experience getting his Chase accounts reopened after being labeled a bust out risk. You could try to take the same steps or hopefully Chase catches their error without you needing to intervene.