Consumer complaint received 2017-10-18
Company: JPMORGAN CHASE & CO.
State: CA
Product: Credit card or prepaid card
Sub-product: General-purpose credit card or charge card
Issue: Closing your account
Sub-issue: Company closed your account

Complaint:
On the night of XXXX/XXXX/XXXX I tried using my card at a XXXX restaurant and it was declined, I had to pay with other card. Then I called Chase Sapphire Preferred customer service to find out what was going on, I was told that my account was closed and a letter would be sent out to me explaining why. I have always paid my bill on time since XXXX, I had no deliquent remarks, and I have only been a good customer. 

That night I logon to my Chase online access and found out that all of my Chase cards were closed, including my first credit card, the Chase Freedom. I reached out to Chase via XXXX and was replied and told to call a number. 

I called in the next day after getting the correct number from the Chase Social Media team from XXXX. on XXXX/XXXX/XXXX around XXXX and I was told that it was due to a periodic review and my account was deemed risky. It was because I had added and removed multiple authorized users across my accounts. They then asked who were these users and I had to explain to them that one is my roommate, then my parents. They also told me that I added and removed authorized user on my other card a while back. I explained to them that it was for a good friend of mine, we went to college together and she went for a graduation trip with her parents before she started her job at XXXX as a consultant. She went to XXXX and took a cruise to the XXXX, so she wanted to avoid the 3 % foreign transaction fee since she only had the Chase Freedom and the Chase Freedom Unlimited. 

The rep then told me that it was a misunderstanding and it was nothing about the spending. I just bought a computer for a friend and the shop had to refund it because it was on a XXXX holiday and the item did not ship yet. The rep told me that she would ask her supervisor to put my accounts for reinstatements and would be reviewed within 10 days. I was asked to call back on XXXX/XXXX/XXXX. 

I received a letter couple days ago with the account closure reason : Bank 's request to close the account, account not use as intended. 

Today on XXXX, I received a call from Chase but I could not get it since I was in class. Then during break, I called back and was told that they could not reinstate my accounts and they shall remain closed. 

I was told that the reason was when I added authorized users, I am helping them with their credits since they will be tagging along my good credit and that is not allowed. I then explained to them that that was not the purpose of adding them, the purpose was so they could enjoy the benefit of the card such as no foreign transaction fee. My parents used the cards a lot abroad since they are not based in the US. The rep then told me that it is also not allowed since that means the authorized users are using my benefits of the card. 

I was puzzled, if that was not allowed then why have the option to add an authorized user in the first place? Furthermore, I was not helping them to build credit, my parents and my roommate did not have any SSN, that was not the purpose. Furthermore, to the contrary, if I was trying to help them build credit like they accused me of, I would have kept them on my account after they did not need the cards any longer. The fact that I removed them from my accounts mean they do not need the cards any longer and I was not helping them to build credit. If that is the case, then all people who add authorized users such as their friends and family members should have their account closed. 

I then asked them if I can still apply for new cards in the future, they said yes but for now these existing cards that you have will remain closed. I also asked them if I add an authorized user in the future, would that be fine? The rep told me that it would risk my account to be closed again like this one. Then why give the ability to add authorized user in the first place?

Company response to consumer: Closed with explanation