Chase Bank Forgives "All Outstanding Credit Card Debt" For Canadian Customers

submitted by magnora7 from zerohedge.com

sorted by:
top
newinsightfulfun
you are viewing a single comment's thread.

view the rest of the comments →

[–]magnora7[S] 4 insightful - 2 fun4 insightful - 1 fun5 insightful - 2 fun -  (3 children)

What a surprising and crazy move. Why in the world would chase knowingly relinquish debt? Doesn't make sense to me. They must've gotten some sort of benefit to do this, right?

This is the closest thing I've seen to a "Jubilee" in my lifetime

[–]Optimus85 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (2 children)

Here's the alleged reason: “Chase made the decision to exit the Canadian credit card market,” the company said in a statement. “As part of that exit, all credit 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.”

So what would convince a mega bank to walk away from what could be millions of dollars? The company tells CBC it was the best decision for the bank and customers, hinting that forgiveness was probably cheaper than continuing to process payments or farm it out to a third party debt collector.

https://fortune.com/2019/08/08/chase-forgives-outstanding-credit-card-debt-canada/

[–]magnora7[S] 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (1 child)

Thanks for digging that up.

hinting that forgiveness was probably cheaper than continuing to process payments or farm it out to a third party debt collector.

I find it very hard to believe giving up all the debt was cheaper than selling it to a 3rd party... unless the debt was so incredibly insolvent that the assumption is it will mostly never be paid off...

[–]Vigte 3 insightful - 1 fun3 insightful - 0 fun4 insightful - 1 fun -  (0 children)

unless the debt was so incredibly insolvent that the assumption is it will mostly never be paid off...

Welcome to Canada...