Incredible: Chase Wipes Out All Debt On Their Canadian Credit Cards!

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Chase has completely exited the Canadian credit card market and shut down all Canadian operations. The CBC confirms that Chase will also forgive all outstanding balances on their credit cards.

Amazingly, Chase has decided that it would be better for them to forgive all outstanding debt on their Canadian credit cards, rather than try to collect it.

Apparently everyone’s nicer in Canada, even the banks!

I can’t quite comprehend why they aren’t selling the debt to a collections agency, but congrats to everyone who just had their debt wiped out!

Chase made this decision on July 27th, so any payments made as of that date will be returned!

Chase will be reporting all accounts as having a zero balance, so this debt forgiveness will not hurt credit scores.

Sorry Americans, this is not about to happen on this side of the border!

Do we have any Canadian readers that had their debt forgiven?

HT: JuryDuty, via DDF

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77 Comments On "Incredible: Chase Wipes Out All Debt On Their Canadian Credit Cards!"

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Jake

WOW. That is insane.

Emes

That’s loonie, eh.

YoniPDX

True,
But heard it was a toonie.

Emes

Machlokes. One toonie or two loonies. It’s all the same.

Yechiel Z

This is not normal!

Lakewood613

Very Very weird interesting business decision How is it going to affect their stocks? Sounds like April fools day

Cholentfresser

Waaaaat???

Joe

Why did they do it??

Dan fan

Purim joke?

Shver

Yishuas hashem kiheref ayen!

DualCitizen

That’s what happens when you legalize marijuana

Yossi

Shrek!!! I shut down my card with them a couple years ago with a 30k limit. I should have spent it and walked away with the 30k 🙁

Agoldsc1

When I saw this, I thought it was #Fakenews. Why not sell the debt, even for pennies on the dollar?

dfromny

Damn! For once I’m jealous of Canadians 🙂

A

Bahahhaha

Chaim

“The bank retired both cards last year and said it’s wiping out cardholders’ debt to complete its exit from the Canadian credit card market.”

These are from their 2 cards that been closed for a year already so it’s probably very little debt to begin with.

MOE

Yeah, I rather be a Canadian at this point than have my last name Green….

Dave

Lol!

AF

You are absolutely right.

Agoldsc1

Exactly. I just discussed this with a relative of mine in Canada, and he told me that the cards were closed down in March of 2018. I don’t know the stats, but I imagine that debt which is 1.5 years old is probably not going to be paid anyway, which would reduce the market value. Chase probably decided that it wasn’t even worth engaging attorneys to prepare the sale of the debt for what they would have earned on it.

Harry K

Can they please leave the USA too? 🙂

mike

Anyway we are all at 5/24 they useless at this point to most. LOL

Harry K

Can they also leave the USA as well?

Pete Weiss

Chase was playing games and doing illegal things probably….Pretty sure they couldn’t sell the debt.

Yanky

It’s based on the recommendation of Bernie Sanders to forgive college debate

Pointz

Bernie is the best man alive

Nick

Bernie’s right – not only is health care better, but debt is forgiven. Vote Bernie for Canadian Prime Minister

Alex

Ha

george

Maybe if college was free you would know how to spell debt

tim

when will they walk away from the us market? can i spend 500k and ask them to walk away? wow let me nook my vacation to 40k now with my chase card

Yossi

I’m originally from Canada, does that make my debt Canadian?

Ar

Why in the world would they return payments that were made? Bizarre.

MOE

Yeah, I rather have a Canadian Passport now than have a US Passport with my last name Green…..

J

The schools/groceries/landlords etc. Should learn from them.

Chaim

WOW, and I thought Cleveland was the place to move to!

Todd n Gordo

I think you mean “Sorrey Americans”

Crunchy

What is the total amount forgiven ?

Aaron

Wow even Chase thinks Canadian currency is fake currency….:p

Chaim

Lol

Canadian

I just spent 62k I was deciding if i should use my Amex or Chase card. Too bad i used Amex

Chaim

I’m one of the lucky ones they wiped off 800 something dollars of me!
Wish I had a bigger balance!

Thank you Chase!!!

schneur

When was the balance from?

gnutello

Apparently it’s the year of Jubilee?

dt

To clarify, they pulled out of the credit card market in Canada in March 2018. It’s been 17 months since then. The vast majority of Canadians with Chase cards have probably already paid their bills OR aren’t going to be able to pay their bills anytime soon. They can sell the debt, but it’s worthless since any outstanding debt is already 16 months overdue. So rather than dealing with the hassle of it, they likely decided to just call it a day and close up shop completely there. Not think about it anymore.

Chances are that this already hurt your credit score if you haven’t paid your debts in 16 months. But now it won’t make your credit score even worse.

Yes, maybe you could have benefited had you maxed out your chase cards a year ago. But you probably didn’t.

Chaim

If you maxed out the credit and paid minimum payment then it doesn’t hurt your credit!

dt

I stand corrected. But my point is that this really only affects a small percentage of people, many of whom probably have lower credit limits anyway. It’s very nice if you happen to be one of them, but if the overall amount of debt cancelled wasn’t low, this probably wouldn’t have happened in the first place.

Fjdo

For the record, maxing out your cc does hurt your score EVEN if you pay the MMP. Thats because your debt to credit limit ratio is at 100% (and ideally shd be at 30% or less)

ckmk47

But you’d be paying 18-24% on that money for these 17 months.

Chaim

In the US , when a CC company forgives someone’s debt for whatever reason, the amount gets reported to the IRS as income. For large amounts, with nothing withheld, the tax consequences can be significant.

Anyone know if Canada does the same?

Chaim

Only if you spent for business expenses!

Yehuda

Canadian reader here. I didn’t have an account with them, but I can tell you that this is all over the Canadian news. I’d love to know how much debt they forgave, but Chase is not sharing that info.

Yehuda

I think I’m gonna spend up to my credit limit on all my cards right now and hope that the banks forgive it.

Sam

Does chase Canada give mortgages?

Steven

Only 2 credit cards.

Joseph

I am attorney who deals with debt. Chase hasn’t sued on a single defaulted credit card account since sometime around 2013 due to internal issues, nor have they sold any of their accounts to debt buyers for collection (although they just changed their terms and conditions to include an arbitration clause so they may be changing their strategy). Check any court docket and you will see lawsuits from almost all of the other major banks but chase. If u are planning on defaulting u may want to transfer your balance to a chase account.

Chaseshutdown

Perhaps that’s the reason they’re the bank that will close down your card in a min if they suspect such behavior.

Ben Forster

This is not true
They do sell the debt to collections comp

chesky

I’d love to hear of one story of even one person that capitalized. Please do post here.

Why not ?

I have a chase Cc to pay now , can I move to Canada and claim I’m living there ? So they wipe it clean ?

AV

But they lose their points!!!

me

The best strategy for us is to apply all cards offered by foreign banks, max them out, pay minimum every month, and hope they move out of US someday!

Brian Fleischer

can you say class action lawsuit?

Avi

Think it applies to we Canadians living in the goldeneh medina?

Juan

Damn, I had paid mine in full !!

SeanD

Folks… The credit standards for being approved for a credit card in Canada is significantly higher. The banks and credit card issuers are notorious for giving even high income earners and people with high credit scores a hard time when they have lots of outstanding unsecured debt without a balance. More than likely… Chase’s kindness is simply a clever marketing ploy. They likely are wiping out the debt of people that they knew they would never collect on. Chase stopped new issuing cards in Canada years ago so this is probably the crap of the crap customers that is left with debt that’s not worth the public relations spin they get from “Wipes out All Debt” headline.

EG

Actually several years ago Wells Fargo decided not to collect delinquent 2nd mortgages. I know two people who had their balances wiped clean. So there actually is precedent on this side of the border (and that was secured debt!).

Known

Dan you didn’t mention that they’ll have to pay taxes for the forgiveness it’s a 30-35% tax
And can even take you to the next bracket

Steve

When Chase closed in Canada I waited for my bonus, paid them the 4K that was the balance on my credit card and felt good that I paid the card off and called it a day. People still carrying balances over a year after they left then get forgiven… not a feel-good story.

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