Chase Bank Clears Canadian Credit Card Debt

Chase Bank Clears Canadian Credit Card Debt

Sheehan works for a website offering financial rates for mortgages and credit cards. The southwestern Ontario resident said he should have owed about $1,645. "I'm like, 'I don't want to miss a payment here".

United States-based banking giant, Chase Bank, recently chose to forgive outstanding Canadian debt for two if its credit cards.

"I'm honestly still so ... flabbergasted about it, ' Adamson said".

Chase folded all Amazon and Marriott Visa accounts previous year and recently opted to cut its loan losses completely. "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.

Credit card rewards expert Patrick Sojka told CBC that Chase likely concluded that debt forgiveness was cheaper than continuing to collect credit card payments in Canada.

For Adamson, a tech writer who, along with his wife, recently moved in with his parents in Dundalk, Ont., to save for a house, the surprise "absolutely" comes a big relief.

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Chase has not disclosed when they chose to wipe the debt or how many customers will be affected.

"When I got the card, I was a little extra hungry on buying things online".

Chase could have sold its outstanding debt to a third-party, which could have gone after the customers but chose not to.

In particular, to this development - Canada Revenue Agency (CRA) might look into the taxability factor of this windfall.

Also, according to Elena Jara, Director of Education at non-profit counseling agency Credit Canada, bank's swift exit may indicate it can write-off much of the outstanding debt and there is a possibility that the insurance company will cover the losses.

The US bank, which is part of JPMorgan Chase & Co, announced in January 2018 that it would be cancelling its two Canadian credit cards.

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