In an absolutely stunning development, J.P. Morgan Chase just forgave all debts their credit cardholders had.
All outstanding debts wiped clean as the bank exits the credit card business in Canada. Wow. Which leaves one question after Obama let Wall Street off the hook and then bailed them out – what about the USA consumer?
From Reuters: A unit of J.P. Morgan Chase & Co has agreed to “forgive” the outstanding credit card debt of its Canadian cardholders as part of the U.S. bank’s move to exit the Canadian credit card market, the company said on Thursday.
Chase Bank, which is operated by JP Morgan Chase, announced in January 2018 that it would close all credit card accounts in Canada on March 15 of that year. At the time, customers were required to continue making payments on their accounts.
The bank declined to say when it made the decision to write off the remaining debt. The Canadian Broadcasting Corporation quoted some customers as saying they received letters from the bank this week informing them of the decision.
Chase declined to disclose how many clients would be affected or how much debt was outstanding.
An alternative would have been to sell the debt to a third party, but the company felt that simply cancelling the debt entirely “was a better decision for all parties, including and most importantly our customers,” Maria Martinez, vice-president of communications for Chase Card Services, told Reuters.
“It’s crazy,” Douglas Turner, a 55-year-old long-haul trucker, told CBC. “This stuff doesn’t happen with credit cards. Credit cards are horror stories.”
From USA Today:
Originally, customers were told to continue paying their debt, Reuters reported, but the company confirmed Friday to USA TODAY the debt was now cancelled.
“Chase made the decision to exit the Canadian credit card market. As part of that exit, all credit card accounts were closed on or before March 2018. A further business decision has been made to forgive all outstanding balances in order to complete the exit,” Maria Martinez, vice president of communications for Chase Card Services, said in a statement.
Chase declined to say how much debt was forgiven or how many customers were affected. It wasn’t immediately clear when the decision was made, but CBC spoke with some Canadians who said they received a letter from Chase this week.
“I was sort of over the moon all last night, with a smile on my face,” Douglas Turner of Coe Hill, Ontario, told the Canadian broadcaster. Turner said he still owed more than $4,500 on his card. “I couldn’t believe it.”
The bank had offered two rewards cards – with Amazon and Marriott – in Canada, CBC reported.
“It’s crazy,” Turner added. “This stuff doesn’t happen with credit cards. Credit cards are horror stories.” The 55-year-old trucker also told CBC that his most recent payment on the account would also be reimbursed.