Chase Shutdowns Update: Algorithm Gone Wild Or Something Else?

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Chase Shutdowns Update

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.

Chase Shutdowns Update

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.

Final Thoughts

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.

Mark Ostermann
Mark Ostermann is a father, husband and miles/points fanatic. He left the corporate world after starting a family in order to be a stay at home dad. Mark is constantly looking at ways to save money and stay within budget while also taking awesome vacations with his family. When he isn't caring for his family or taking a weekend trip, Mark is working towards his goal of visiting every Major League Baseball ballpark.

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41 COMMENTS

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41 COMMENTS

  1. So I know this is an old Post, but the discrimination against women thing is something Id very much like to know more about. I recently was approved for the Chase Starbucks Visa ( I know I know) to the tune of 7300. The card has always been hinky: won’t run for more than 70-80 bucks, but will run back to back for 56.00 10 times, cash advances can be no more than 40$ at a time, but I can do 4-5 at the same ATM back to back. Now, I proceeded to pay off my entire balance to make sure I had room come black Friday (and more importantly Cyber Monday). I paid the bill Saturday. Sunday the automated system has no record of the payment, and my checking account didn’t show the hit, so I made an additional payment. Monday it’s telling me I have a 6k credit, but nothing available. Today is: well do you know who is paying this bill for you cause we have a lot of women getting taken advantage of by finances/significant others that they’ve never met and then they’re sick with the returned payment… Ooh and but the way I am a supervisor and the account is closed and you can’t do anything about it. Thanks for the 12k, it’ll be be returned in 10-14 business days but possibly longer sure to Covid 19. Oh that was all your holiday shopping money? …. Too bad.
    This taught me two very important things: do not keep my financial eggs in one basket, and more importantly
    Fuck Chase. ((Pardon my language))

  2. Will never go back to Chase. Never again. I have a Sapphire Reserve card since they launched the product (Loved the card). I have swiped at least 120k-200k every year, always pay statement full balance, never late, perfect credit history. On September 25th (Card was working on the 24th) , I tried to order Uber eats for 19 dollars. Transaction got declined several attempts. I called in, they have closed my only credit card I have (I only keep on credit card and one Amex with me), no explanation, nothing. They have closed my 70k credit limit Reserve card. CHASE its a Joke. I don’t need them. This is disrespectful after all these years. I will continue using my AMEX for now on. Waiting for Monday to personally go and close the bank account I have left with Chase, and move my money somewhere else. Dont’ use Chase. Good thing I was’t traveling.

    • Sorry to hear that – maybe you got caught up in their system issues. Let us know if they reopen the account.

      • I only had one conversation with Chase, and their support were the lowest I have experienced. Basically The C.C is closed and they won’t provide any further detail. They have sent me a letter staying the Credit Card are closed. No more. Even if they offered me to reopen, I don’t want them anymore. I got a new Visa card from the Credit Union I bank with, and will just continue getting all my points on the AMEX Platinum, and just use the Visa card when merchant doesn’t take AMEX. Just waiting on a few wires that are in transit to hit my Chase Checking account to move all the money out and close the account.

  3. Are we looking for “inequality” in any and all events? Checking trends on credit cards management being the witch hunt du jour? I’ll jump on the conspiracy theories wagon and suggest that maybe the reason why there were more women “targeted” than men was because women are the ones traditionally going on shopping sprees (aka shopping therapy) and perhaps accumulating more debt. Oh wait…am I being politically incorrect for saying this?

  4. They sent me a letter stating that they were dropping my credit limit from 31,000.00 to 8,000.00 .
    I have had the account for note than 20 + yes. I’ve had a zero balance due to paying in full each month. Why would they do this? Is it because they arent making any interest off me? I am going to close this account and use another card, just saying…..

    • Maybe it is best keping it until after pandemic and apply for a new one before closing this card. I am in the same situation, 2 of my cards from another card issuer did the same thing by lowering my limit with excellent credit score. I have been (loyal) with them for 25 years! I usually paying it off in full monthly. Many years back they used to award me with an increased limit automatically, but stopped after the financial crash. APR for purchases and cash advances also went up. I applied for their new card and were only given 500 credit limit! Can’t even use it to charge monthly recurring bills and groceries. This new card is basically useless. Every card issuers are doing some type of cuts to cushion them from possible debt over-run due to increasing unemployment claims from the pandemic.

    • Chase did this to me saying they were cutting my credit limit in half and I wrote to them immediately by email. I explained that I was maintaining my good credit score and low balance in preparation to using the cards for home improvements later in the year. I explained that I am a travel/expense mgr and have seen what they are doing in the industry and while I understand reducing credit/closing accounts for those not meeting requirements, doing this to loyal and credit worthy account holders was offensive. I told them that doing this would adversely affect my credit score without cause. I did receive a response that they were putting my request on file and leaving my limit intact. I guess that would be for now but if they do it again, I may just have to ask if it is because I am a woman.

  5. The week of June 22nd Kansas DOL deposited 2 unemployment checks then took one back a few days later. Then gave me another direct deposit. My husbands monthy DD went in the same day.
    Chase locked up my account for suspicious activity. Locked up all of our money…. $4200 We could not pay any of our bills for July. They just keep telling me they do not have a date.. they are investigating and they are escalating blahs blahs blahs.
    Here it is Aug 23rd and they still have the money locked up.
    I reported it to the occ. Please everyone report them we have to stop this. They have already paid millions in fines but keep on doing it.

    • Same here… we are stuck too… my husband and i were worried when they investigating.. and all of a sudden closed my account .. it was shocking.. still they have not released our money… dont know how to reach and where to go.. helpless.

      • Even my credit score and paycheq score related to bank score has been negatively affected. Is this how they treat in return to 8 yr old loyal customers..

  6. Just got done with a MTG with Chase and Rocket has it all over Chase. Things have been changing I’ve noticed and customer service is one. I like to be able to work with a person instead of robot messages. Not happy, too many other banks !!

  7. I have 2 credit cards they lower my available credit on my two cards . They did a financial review and decide to do that. The little man always lose covid19 people struggling to make payments i make payments never in default but they decide to take thus action which leads to my credit score being affected negatively which makes more problems for me and the discrimination continues. God bless the USA.

  8. None of my accounts have been affected, and my Freedom points are still intact and continuing. Chase is the only bank I have ever used (since I was a child). Sorry so many folks are having difficulties.

  9. 2nd round of Stimulas checks?
    Never received the First !!!!
    Where is my First stimulas check?
    Never received my First stimulas deposit. Not Even in Savings deposit!
    I was looking forward to stimulas. Every one I ask has gotten theirs. But me.

  10. So I only have checking and savings with Chase, no credit cards, but I’ve had a few issues since the COVID-19 started. I tried to “schedule a meeting” I can’t remember exactly what the deal was but the app wouldn’t let me. I don’t hear very well especially on a phone so I like to handle important matters in person when I can. I had actually had responded my “personal bankers” email right in the beginnings of shutdowns, asking if they were open so I could come in to speak with her and handle the first issue, never got a response. This most recent situation is baffling to say the least, and while it’s not involving their credit cards, I just wonder if I should look into a different banking union. I opened my account in November after 15+ years of no bank account whatsoever, so I could stop having to go get money orders for bills, which I’ve now had to do since COVID-19 started, so I’m paying for my account and still having to take care of rent & bills as if I didn’t have a bank account. At this time my checking account is overdrawn, yet my savings account has a balance that won’t transfer, whereas before funds automatically transferred to cover checking transactions. I’m getting overdraft charges and don’t want to put my money into account until I get the issue resolved. I believe being overdrawn is affecting my credit and the reason I was turned down for a loan as well (which I only responded to the pre-approval to improve my credit score). I am a very basic account user and just started getting involved with my credit score, and I’m not sure how it would affect my credit if I was to just pay the negative balance of their fees close it out and open accounts through a different bank, or if I even would be able to, or even what bank to consider. Any suggestions.

  11. They just did me the same way..saying I suspicious stuff coming out my account and they close my account sent me my money but where is my other check from my job I’m missing a payment from my job

  12. I AM SORRY THIS IS B/S. MY ACCOUNT HAS BEEN FROZEN FOR “SUSPICIOUS/FRAUD ACTIVITY”… UMMM…ALL TRANSACTIONS: WEEKLY PAYROLL DIRECT DEPOSITS, SPENDING TRANSACTIONS ETC WENT THROUGH MY CHASE ACCOUNT. AND AS OF TODAY August 23, 2020 my account is still FROZEN. Communicating with the EXECUTIVE OFFICE the ONLY thing they can tell is that they are “waiting on their PARTNERS” to give them an update…”WELL, IF THERE WAS ANYTHING FRAUDULENT ABOUT MY ACCOUNT IT WOULD NOT TAKE ALMOST 20DAYS TO DEPICT”!!!!. I DID NOT RECEIVE ANY NOTICE OF SUCH SHUTDOWN. ONLY A BOGUS EMAIL STATING “YOU NUMBER HAS BEEN DELETED. PLEASE CONTACT CHASE “.. AT THAT TIME THE REPRESENTATIVE STATED THAT WAS INACCURATE. BUT SHE WANTED TO DISCUSS MY LUMPSUM DEPOSIT THAT I RECEIVED FROM.THE OKLAHOMA UNEMPLOYMENT COMMISSION…WTH…REALLY..I WENT TO THE ACTUAL BRANCH IN HILLIARD OHIO AND PROVIDED DOCUMENTATION OF EVERYTHING AND WAS TOLD THAT MY ACCOUNT WILL BE RELEASED BY THE NEXT DAY….B/S…I HAD A LETTER EMAILED TO THE CHASE BANK EXECUTIVE OFFICE LAST WEEK, BUT I AM STILL BEEN TOLD THE SAME THING. THIS HAS CAUSED MY MENTAL AND FINANCIAL STRESS. AS A COMMERCIAL TRUCK DRIVER I AM NIT GETTING THE PROPER SLEEP, I HAVE STRESSFUL HEADACHES AND I AM UNABLE TO HELP OUT MY FAMILY AND PURSUE MY GOALS… I AM SEEKING TO ESCALATE THIS MATTER AT THE COLUMBUS OHIO SUPERIOR COURT…I WILL BE REMOVING ALL OF MY MONEY FROM CHASE AND I DEMAND AN APOLOGY LETTER…I WORK HARD.. I WENT FROM BEING DISPLACED, LIVING IN A WOMEN’S SHELTER, SLEEPING UNDER A TREE IN WALMART”s PARKING LOT, DONATING PLASMA FOR GAS MONEY etc WHILE TAKE THE 4WEEKS COURSE TO OBTAIN MY CDL’s and GETTING MY LIFE BACK ON TRACK WENT GOD’S GRACE …

    ***I WROTE THE IS CAP’s TO BE SEEN AND YES…THE ANGER AND HURT THAT I AM GOING THROUGH****I WILL CONTACT THE COLUMBUS OHIO NEWS TO SEE IF THEY CAN ASSIST AS WELL ” I WAS ALSO INFORMED BY THE CHASE REPRESENTATIVE THAT” ANYONE RECEIVING LUMPSUM DEPOSITS, THEIR ACCOUNT WILL BE FROZEN” WOW….

    T.J.HALE

    • Several points, here. When the COVID -19 pandemic started, the first thing Chase Freedom did was discontinue the points, for using the card. I really liked that program, it gave me something to look forward to, for being a good CHASE customer, and using the card. Now I’m just going to pay it off, and close it out. Perks for buying groceries…LOL guess only the rich, high line of credit customers get those. I sure haven’t! Second, I called to complain about not being able to access my online account, in a dependable fashion, making my pills late, in some cases. I was told that CHASE had not had any other reports of problems, and I should contact my internet carrier. Later, I checked, online, and there were literally, hundreds of complaints regarding the online banking site being unaccessable! I have been a CHASE customer, since the early 1980’s, and, up until now, have been very happy with their service. However, being retired, and in the higher at risk group, for complications, if I get this virus, my online banking capability is very important to me. I should not have to go to the bank, or be forced to pay to get a monthly hard copy of my banking activity, simply because this multi-billion dollar company is trying to save a little money, by hiring inexperienced, and 3rd world workers. Being those jobs back to the US, give deserving US workers those jobs! As time goes on, I feel less and less comfortable, giving someone in Southeast Asia access to my banking information. They are very good at lying, and denial, when a problem occurrs. When dealing with MY money, I want honesty! I’m seriously considering changing banking institutions!Wonder if they are considering the Government stimulus payment a, “lump sum deposit”? !

      • After 15 years with Chase. I am pretty much through with them. My VA disability check is direct deposit into that account, I have never had an overdraft, late payment or anything derogatory on my 800 plus credit rating. For the last 3 months MR BIG BANK HAS PERSONAL DEGRADED MY INTEGRITY. I check my credit score on their credit journey program regularly, so imagine my surprise when I logged on to find a 100 point drop and Chase added a Non Existent credit card that was 90% credit maxed out. I was told I had a 14 year old Chase Slate that was keeping a high balance even though it was getting paid a payment monthly. I ended up traveling over 100 miles to find a Chase bank that was not Out Of Business and had a lobby open. Two hours of arguments trying to get the full 16 digit card number so they could show me where I made $ 100 Monthly payments to it. THEY NEVER COULD VERIFY THEIR BOGUS CARD.
        THE NEXT MONTH I was attempting to help a struggling family out. So we purchase $600 OF Wal-Mart items only to be rejected on my zero balance Chase Freedom card for the purchase. Which I have had for over 10 years and never late or missed payment.
        Imagine that scenario for a minute leaving Wal-Mart empty handed.
        I went to the same open bank to find out what happened.
        That’s when I was told that 3 weeks prior With NO NOTICE TO ME AT ALL. THEY froze that card for a $ 2.00 fraud charge out of New York. Never did get to see the supposed fraud charges. Non the less I had them cut up my Chase card to reissue a new card. This month the card that was Shredded, I got a notice of a late payment on that account even though it was a zero balance when they shredded it.
        This is all going on to a disabled veteran with an A+ credit rating customers of over 15 years. Man btw.

        Are they going to cease my DAV check for another fantasy account problem they think on next month?
        They already told me if I close my account out they will send the next stimulus check back to the IRS.

    • Smfh omg smfh omg this is sick wtf not right Just off cruel man. Theyre thinking these unemployment deposits bavk pays are suspicious but why when UI their own govt Federal ss is agreeing to deposit this. SHOW THIS CHASE PROOF. any type of. Documents you have will help!!!!!! Show n proove thats your money through proof of screen shots to e mails. Whatever you have.

      • It’s amazing that you are going through the exact same thing that I am going through. They have had my money since May and they always tell me the same thing each time I call. Give them 10 days, it will be released in 10 days. Like yourself I run a trucking business and am not able to do what I need to do bc of their bafoolery. I have been more than patient, now they are asking for phone numbers of the individuals who deposited funds. I don’t think I’m supposed to provide that confidential information

  13. good morning my name is Fred my chase account were closed so they said do to suspicious that is a bunch of bull yet my account is still open but I can’t get my money out of my account i have a direct deposit from my job that didn’t show up in my account i deposit a 1000 dollars on the 13 into that account now this is what i don’t get the 1000 were clear and deposit into my closed account but the direct deposit from my job never showed up

    • I would imagine the money would get returned to your employer. Have you checked with them to see if it was sent back?

  14. I was another victim of the shutdown and Chase refuses to give the reason why. I was supposed to start a new job and the day of, Chase sent me an email saying my number was removed from my account. I called Chase customer service and they tell me that they are ending the relationship. My whole day is thrown in haywire and ultimately, I lose my whole account.

  15. They closed my account with no notice warning But e-mail a letter a was getting a new card and to activate it SMH i called and went to the bank and got the run around not going back to them! Period!

    • Sorry to hear that Tee. If you get an explanation letter for the shut down please come back and let us know what it says.

  16. Accounts shutdown, and then reopened, with no notice? Yup, some bad programming got into the Chase computers. The same week that Chase started double pulling Experian files. For sure some bad programming got into the Chase computers.

    I had my own run in with whatever messed up the Chase computers: after 10 years of paying my Chase bills in full, no credit cycling, new accounts or anything funny, I got turned down for a lowly CF. I also had the misfortune of having my recon call answered by the laziest CSR in Chase history.

    He was like this: “Why did you get declined? Read the letter.” “No, I won’t move credit from an existing card.” “Is there anything else? No, i won’t fix that duplicate hard pull on your Experian file.” “Goodbye.” Chase customer service has turned into a bad SNL skit. Thank goodness there’s Amex.

    • They have been having some issues for sure. Did you try calling back with another rep? May get lucky with a better one. I have noticed since many of them are working from home the quality has really dropped off.

  17. I have no bank account with chase… only a Visa credit card.
    4 months now I’ve been locked out. It’s caused delinquency on payment which is beyond irritating.
    As of now I have stopped in to the local branch three * for help which was futile at the end of the day. After reading the previous article I’m going further concerned with the state of our nation and the world in general as far as control of the people because this clearly seems like a tactic. If the legal system still works properly it will be my next stop. I certainly hope to resolve the situation before it leads to a certain yet ignominious end. Having stated that I will not be the one Who falls victim of the what almost seems like purposeful control of the masses. Not to mention another name but with the initials WF, I wouldn’t be keen on that place either

    Now it seems they will not let me post this

  18. Happened to my wife. CSP in April and Freedom this month. 800+ score, but first Chase cards. Not really too bothered as I was tired of managing her account and already received the CSP SUB.

  19. I’ve been withase 25 years and consider myself a loyal customer who has overall confidence in what they do will ulgimafy work out. I

    • I’ve been with Chase a long time too but have noticed changes, office closings due to having no COVID equipment months after we got in this mess, no staff to answer phones, technical issues online, etc. It’s like working with a robot to get customer service. Thinking of switching. Too many others that would like our good credit!.

  20. Sure would love for mine to be reopened! Or for any reason to be provided. The only thing I’ve learned is to never be CPC or have any banking relationship with Chase. Sigh.

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