Consumer complaint received 2018-07-13
Company: JPMORGAN CHASE & CO.
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Advertising and marketing, including promotional offers
Sub-issue: Confusing or misleading advertising about the credit card

Complaint:
Chase bank had mailed me a special bonus offer to open a checking account with them, and I decided to take their offer by going into a Chase branch to open a checking account with them. During the account opening process the banker had informed me that I had some preapproved credit card offers available. I was intrigued and proceeded to ask what the offers were and if preapproval means guaranteed approval. The banker informed me that preapproved offers typically means that there is a high chance of approval because my credit profile matched certain criteria but it was not a guarantee and approval is still based on the information in my credit report. I then asked what offers were available and the banker informed me that I had two offers available, one of which was the Chase XXXX XXXX credit card. I was very surprised and excited about the preapproved offer because I had previously applied to get the card but was denied on two separate occassions already. I told the banker about my previous applications for the card which ended up being denied, and that I wasnt planning to apply for the card again so soon. I told the banker that I assume Chase knows that this card was something I wanted and the preapproved offer must mean that Chase now sees that I am now more qualified for an approval than before. The banker informed me that I must have been managing the credit card account I have with them very well because I was just recently given a credit limit increase. I told the banker that I would take their preapproved offer only because the offer was preapproved. The banker submitted the application for me and told me it was processing and that sometimes it can take a few days to reach a decision. A few days later I tried using my Chase credit card and was surprised that it was declined. I was even more shocked to learn that my Chase credit card had suddenly been closed. I called Chase to inquire what caused the sudden closure only to be told that my account was closed due to too many requests for credit and the decision was prompted by my acceptance of the preapproved offer in Branch. I told the CSR that I only applied because Chase informed me that it was a preapproved offer, and had it not been deceptively marketed to me in that manner that I would not have applied again because I was previously denied already not long ago. I tried to reason with the CSR that it must be a mistake for them to close my credit card account because I decided to accept an offer from Chase that was preapproved. The CSR told me that preapproved offers are simply a form of marketing and the fact that I applied for the account doesnt change and that the decision to close my account will be provided to me in a letter. I asked about my the status of the application that was submitted and was told that the decision will also be explained in another letter that I will receive. I received two letters in the mail from Chase on the same day. One was dated XX/XX/2018 explaining why they closed my account, they provided 3 reasons : 1. too many requests for credit or reviews of credit. 2. the accounts on your credit report have not been open long enough. 3. this account and/or a related account was closed at the banks request. Upon reviewing the listed reasons for closure, I find that the 2nd and 3rd reason listed are quite frivolous. The accounts on my credit report have not been open long enough sounds like a logical reason for denying an application, but this account was already approved and opened, so the length of time my accounts have been open was already considered when my Chase approved my application. It makes no sense for Chase to bring up that point because the age of my accounts is not something that I can control or change. The 3rd reason listed for closure is a complete joke and simply there to make it falsely appear as if Chase has more than one valid reason to close my account. It is ridiculous to say that the reason your account was closed is because your account was closed by us. This leaves Chase with only one valid potential reason for closure and that is because of too many requests for credit. However, even that reason is questionable due to the fact that the request for credit was sparked by Chases deceptive preapproved offer. The second letter from Chase received is dated XX/XX/XXXX and the only reason provided for denying my application for the Chase XXXX is previosly unsatisfactory relationship with this bank. When I called in to inquire what that meant, the bank said the application was denied because Chase had closed my previous credit card. I tried to reason that at the time of my application, I didnt have any accounts closed by Chase and my application should be reconsidered. I have tried to resolve this issue by speaking with Chase and explaining that their deceptive marketing resulted in my acceptance of their falsified offer and has caused significant negative impact and harm to my financial well being. Chase doesnt seem to think that the marketing and advertising for their credit products are false and misleading, but in this case, it is very evident that it is. It is not fair for Chase to trick me into applying for a their product using misleading advertising such as preapproved offers, and then take such adverse action like closing my existing account and then denying my application without going allowing it to go through the usual application process.

Company response to consumer: Closed with explanation