Chase Bank forgives all credit card debt for Canadian customers

[sandensea]

Canadians who had credit cards with Chase Bank can breathe a sigh of relief as the company says it will "forgive" all outstanding debt.

Chase Bank, part of the New York based JPMorgan Chase & Co., closed all credit card accounts in the country in March 2018, the company said.

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 Martínez, 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.

At: https://www.usatoday.com/story/money/2019/08/09/chase-bank-canada-forgives-all-credit-card-debt-customers/1964419001/

Canadian shoppers throng Toronto's Eaton Centre.

Canada's household debt-to-income ratio - 175%, compared to 102% in the U.S. - is one of the highest in the world.

Chase officials offered to explanation for their decision to close all credit card accounts in the country (the world's 10th largest economy), and write off all outstanding balances.

[delisen]

1. Weird News. Why the exit? Why the forgiveness?

[sandensea]

2. Good question, eh.

I imagine it must have meant a several billion-dollar writedown for Chase (they refuse to say how much, exactly).

Conspiracy boards must be all over this one - and frankly, who can blame them.

I'm very happy for our friends north of the border. But this is strange.

[delisen]

3. Apparently the regulation of credit cards in other countries

may be a major factor.

Aerospace and defense technology company Northrop Grumman has been a JPMorgan Chase client since 2009. "Our existing program we have in the U.K needs to be replaced," said Northrop Grumman travel analyst and meeting planning manager Holly Walker. "We have abandoned hope that there could be a single card provider globally, and we are hammering out local relationships, which is far more challenging."
Still, Walker said, Northrop Grumman is sticking with JPMorgan Chase in North America. "I have no fear they're going to leave the card business. It's too profitable. There are just so many regulations that make it very challenging [abroad]," she said.

https://www.businesstravelnews.com/Business-Globalization/JPMorgan-Chase-To-Exit-International-Commercial-Card-Business

[sandensea]

4. Good point.

I imagine that not being able to charge customers a 43% effective APY must rankle a bit.

[thesquanderer]

5. As if Trump wasn't sufficient reason to consider moving to Canada. (n/t)