Recently applied to Chase for a card, got turned down for BK (Ch 7 8/01) that did NOT include Chase - never had an account w/them until April, when I got a car loan w/them. Oddly enough, there's a reference to Citi being included in my BK. Uhhh... this is Chase. Are they partners? I appealed and got this note today. I want to respond and figure I'm going to have just one more shot in this process, so I want to make it my best shot. I will bullet my points and ask that you rate, edit, or add what you think will be most effective. Dear Mr. Dans, You contacted us recently to request that we reconsider your application for a Chase Perfect Platinum Visa (actually, I said in my appeal to give me any card I might qualify for, besides secured) Your request was carefully reviewed, and we regret that we are unable to approve your application at this time, for the following reason(s): Your consumer credit report reflects a bankruptcy Specifically, the Chapter 7 bankruptcy with A. Sharkskin Lawyer and Citibank causes us concern. Please allow me to explain, Chase views the presence of derogatory information to be negative and must consider it as long as it appears on your consumer credit report. Blah, blah, blah.... Okay, some of my points are pretty edgy, but I figured I'm just about down for the count anyway. And I'd love to hear any comments about the Chase/Citibank thing - that really shocked me. I understand Citi has a blacklist but sharing it w/Chase, or mutual respect of such a thing, well, I think that would get someone's interest at a Federal level, no? 1) I understand your predilection towards bankruptcy free customers. Given the state of the economy in the past few years, that is a shrinking demographic, since personal bankruptcies are up by 15% just last year. I hope you would be willing to not only review how I have fallen, but also how I've picked myself up. An Experian FICO of 713 and TransUnion FICO of 685 (CR Chase pulled was TU) is not achieved in two years and four months after filing bankruptcy by repeating any of the mistakes that got me into bankruptcy court. To put it succinctly, I've learned the hardest possible way and I've learned my lesson well. 2) Given my relationship with Chase, it appears your abhorrence to personal bankruptcy has developed recently, specifically after April of this year, when you approved me for a car loan of $9,500. Certainly you were aware of my bankruptcy and at that time, I was just a year and a half past my bankruptcy. 3) I have made seven payments on my car loan with Chase, all early and even paid towards principal. I chose Chase, even with a higher interest rate, because their tagline is "the right relationship" and that's what I wanted, to build a relationship. 4) You cite specific concerns over my bankruptcy and my lawyer and Citibank. I'm not sure what concerns you have over my lawyer, but I would probably agree - I don't like him either. However, he is very good at his work and that's why I hired him. But I would like to know more about your concern with him and how that plays into your decision. I am also very curious about your concern with Citibank. Oddly, you did not cite any other banks or credit companies included in my bankruptcy - just Citibank. Does Chase have some special arrangement or agreement with Citibank concerning applicants with bankruptcies who have included either Chase or Citibank in their discharge? Perhaps this quiet little arrangement would be of interest to [include federal agencies that govern banking regulations here]. Perhaps, also, Citibank might be interested in hearing that you overlooked this agreement when you approved me for a car loan in April. Or, perhaps, this agreement has only come into existence since then. I would be very interested in your reply to these questions. 5) As I stated above, I chose Chase to build "the right relationship", yet I don't think that will happen before my car loan is paid off. Perhaps it's a wiser choice for me to refinance my car loan at a lower rate with some of the offers that have been coming in the mail. I realize that JP Morgan etc. could care less about the meager 12% interest Dans pays on his car loan, but I would think customer retention is less expensive than recruiting new customers.
The banner ad today is for the Chase perfect card, reads "perfect rewarding"... hmmm.... perfectly annoying?
DanS, I think you've spelled out exactly what needs to be said. Someone at Chase will now have to take the time to read it. From what I've read, Chase seems to be one of the most BK unfriendly creditors there are. Personally, I am not very impressed with this bank. Give it a shot. Your doing the right thing by not just taking this letter and accepting it. Perseverance does pay off so I wish you the best of luck and hopefully Chase will come to their senses.
Do you think it's maybe a bit over the top, threatening to refinance the loan and questioning their relationship with Citi?
I would wonder if they are just referencing your Bankruptcy with your attorneyâ??s name. Also does Citibank report in some fashion that makes them think it's open or collectable? I would double check your reports. To Chase it's all about risk management credit cards are unsecured, car loans are secured. I would probably tone it down but if your really going to take your business elsewhere you might be better off to just dump Chase investigate your reports, save yourself the hassle and establish a relationship with a bank that better meets your needs.
Just my opinion, I would take out #4 and try to imagine yourself as a Chase employee dealing with it. The rest of the letter looks really good though. Have you considered maybe asking for a Chase card, not that Plat. one you tried for, and putting that in your letter? Chase really is BK unfriendly on their cards, I would try to start at the low card with them at first. Chase and Citibank compete against each other so I wouldn't even mention a word like Citibank to Chase. I really doubt it will work but you never know with the right letter or situation. If you could get the lower card you could always try to update at a later time with them maybe?
I will probably leave out MOST of #4, but I think the last point about Chase being "alright" with my BK eight months ago is one that's worth keeping. Yes, I know a secured loan is diffferent than an unsecured revolving line of credit, but since I don't have a lot to work with, I'll leverage whatever I can. I am certainly willing to accept a "lower" card, a $300 limit, etc. Their first rejection letter suggested I apply for a secured card. I wrote back that if I was within a year of my BK, that would make sense, but w/a FICO of 713 and $15k CL on two CC accounts, I'm more interested in the "relationship" that Chase supposedly offers. And I didn't say this, but I'm not interested in another hard inquiry. Also, the period of time they would consider turning it into an unsecured card is 18 months. Man, that's a long time. I will probably turn down the absurdity of #4, but I think leaving the question in about my lawyer and Citi, to the exclusion of anything else included in my BK, will at least prompt a reply. I was thinking it was along the lines of a nutcase letter, where they just shake their heads because they're not sure what to say to me.
bump also interested in knowing about Chase's policies re: BK Could somebody please update? Thanks! MrX
The update is - no change. I put some info in NanaC's thread about who does/doesn't do BKs. I think I read someone say they had a BK and got chase, but could be wrong. Sort through that thread, it's all there.
Thanks, Dan... btw, do you know which CRA Chase checks every month or so for their AR? Would it be the same CR (I assume TU) that they pulled to approve the acct? MrX
Chase is not pulling an AR monthly for my 2 accounts... and when they pull one occassionally, it's been on EX, not on TU which they pulled for the cards. As for BK...nope..my info gathering has said it's a no go all around and if it has happened, it must be a fluke!
Did the letter ever go to Chase, and was there a response? Just curious. parts of it are great. The overall tone to me is just a letter to get it off your chest, and no a persuasive tone to get them to change their mind. That's the way I would have read it as a Chase employee. Certainly there are OTHER OCs looking for a relationship with someone in the 700s. If I was a bank, I'd go for it (grin) especially considering that I'm still in the 500s.
