Stories
Slash Boxes
Comments

SoylentNews is people

posted by Fnord666 on Friday August 09 2019, @06:59PM   Printer-friendly
from the to-err-is-human-to-forgive-divine dept.

'It's Crazy': Chase Bank Forgiving all Debt Owed by its Canadian Credit Card Customers:

Bank says this was the best way to exit Canada after folding its Amazon and Marriott Visa cards

Finally, a good-news story about credit card debt.

U.S.-based Chase Bank is forgiving all outstanding debt owed by users of its two Canadian credit cards: the Amazon.ca Rewards Visa and the Marriott Rewards Premier Visa. 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.

[...]After 13 years in the Canadian market, Chase decided to fold its two Visa cards in March 2018.

The bank — which is part of global financial services firm JPMorgan Chase & Co. — wouldn't say how many Canadians had signed up for the cards or how much debt was outstanding.

[...]Credit card rewards expert Patrick Sojka said Chase likely concluded that debt forgiveness was ultimately cheaper than continuing to collect credit card payments in Canada.

"They're still probably paying taxes, paying accountants, and for them, they just probably worked it out and [said], 'Let's just forgive the debt and fully get out of the country.'"

But he's stumped as to why the bank didn't instead opt to sell the debt to a third-party debt collector, which would allow Chase to recoup some cash.

"It is definitely a head-scratcher, for sure," said Sojka, the founder of Rewards Canada, a site that tracks reward programs.

Chase told CBC News it chose the debt-forgiveness route so that everyone benefited.

"Ultimately, we felt it was a better decision for all parties, particularly our customers," spokesperson Maria Martinez said in an email.

The windfall is generally not considered taxable unless the credit card was used to purchase items for their business. As always, check with your tax advisor if you are at all unsure.


Original Submission

 
This discussion has been archived. No new comments can be posted.
Display Options Threshold/Breakthrough Mark All as Read Mark All as Unread
The Fine Print: The following comments are owned by whoever posted them. We are not responsible for them in any way.
  • (Score: 0) by Anonymous Coward on Friday August 09 2019, @09:46PM (1 child)

    by Anonymous Coward on Friday August 09 2019, @09:46PM (#878027)

    My bet is the ongoing business costs would cost more than just walking away. Remember they were the ones owed money. The money is already 'gone'. They pretty much walked away for 'free' and it does not cost them more to keep chasing (hehe) it down.

    They probably could not flip it to a collection company as probably most of the debtors were not in default.

    They then get some free advert out of that.

    Think about it this way. Lets say someone owes you 100 dollars. You do not have 100 dollars. They spent it already. That money is gone. The best you can hope for is they give it back. Lets say you are spending 10 dollars a month to harass them to give it back. In 11 months you are now losing money. Or you could walk and just do nothing.

  • (Score: 2) by JoeMerchant on Friday August 09 2019, @11:29PM

    by JoeMerchant (3937) on Friday August 09 2019, @11:29PM (#878064)

    My University wrote me a parking ticket the week before classes started in the Fall, of the year that I had graduated in the Spring. I already had copies of my transcripts. The ticket was only $20, but... the parking lot was dead empty and in summer you don't need to display a decal that they haven't even sold yet for the fall. I appealed, they denied. I let them send me collection letters which they did every month for about 7 years. 84 letters, with ~$0.30 postage on each - plus cost of envelopes, handling, employee reviews of the data... yeah, it was about time for them to give up.

    --
    🌻🌻 [google.com]