Consumer complaint received 2023-12-22
Product: Credit card — General-purpose credit card or charge card
Issue: Trouble using your card — Credit card company won't increase or decrease your credit limit
Company: JPMORGAN CHASE & CO. (TX)

Formal Complaint Regarding Disparate Impact and Negative Consequences by JPMorgan Chase Bank, N.A ( CHASE ) Dear Consumer Financial Protection Bureau, I hope this letter finds you well. I am writing to file a formal complaint against JPMorgan Chase Bank, N.A ( CHASE ) regarding what I believe to be disparate impact and disparate treatment in their recent decision to significantly reduce my credit limit from {$2000.00} to {$500.00}. When I initially obtained the credit card in XXXX, my approved starting credit limit was $ XXXX have been a responsible and loyal customer of JPMorgan Chase Bank , N.A ( CHASE ) for the past six years, consistently making on-time payments and maintaining a positive relationship. Since that time, my income and credit have improved substantially, reflecting my commitment to responsible financial management. 

However, I recently experienced a sudden and substantial reduction in my credit limit, which occurred immediately after I paid off my credit card balance on XX/XX/XXXX. On XX/XX/XXXX, I received a We reviewed your account and adjusted the credit line letter. This has raised serious concerns about the fairness and transparency of JPMorgan Chase Bank, N.A ( CHASE ) 's credit evaluation process and policies. The timing of this decision is particularly perplexing, as the credit limit decrease occurred immediately after I cleared my outstanding balance on XX/XX/XXXX. Subsequently, I noticed the reduction in my credit limit on XX/XX/XXXX. This abrupt change has created financial instability and has a direct impact on my credit utilization ratio which keeps me and consumers with my profile type blocked in a specific credit score profile. 

Despite seeking clarification through multiple calls to JPMorgan Chase Bank, N.A ( CHASE ), I received conflicting information from their representatives. The initial assurance that my credit limit would be restored, on XXXX XXXX at XXXX CST, was later contradicted on XX/XX/XXXX, XXXX CST, and I was directed to request a credit limit increase through the risk assessment department. During this process, JPMorgan Chase Bank, N.A ( CHASE ) requested a hard credit pull for reconsideration of my credit limit. I expressed my concern about the impact of a hard inquiry on my credit score and refused the hard pull, instead requesting a soft pull for reconsideration. The representative then stated that my request needed to be reviewed ; 2 days later I received a letter stating they couldnt access my credit report and Id need to call customer service. 

On XX/XX/XXXX, at XXXX CST, I contacted JPMorgan Chase Bank , N.A ( CHASE ) customer service and was told to contact CHASE risk management department. The risk management representative asked several questions, but XXXXne question stood out as potentially discriminatory : " Where did I get the money to make a large payment? '' I found this question inappropriate and irrelevant to the request for a credit limit increase. Especially since I provided the representative with my action plan to pay off my credit cards as well as my annual income. 

Unfortunately, my request for a credit limit increase was denied, on XX/XX/XXXX, leaving me with unanswered questions and financial distress due to the negative impact of this credit limit reduction. I am deeply troubled by the lack of clarity surrounding the reasons for this credit limit reduction. The explanation provided, citing the " balance to credit limit on other credit cards, '' does not seem to justify such a drastic and disproportionate action. This situation raises concerns of disparate impact, as the decision appears to have an adverse effect on my financial standing compared to others. 

As a responsible and long-standing customer, I believe I deserve fair treatment and a clear understanding of the factors contributing to the recent actions taken against my account. How did my payment initiated an account review that assignment my account to the risk department. How does a loyal JPMorgan Chase Bank, N.A ( CHASE ) customer become a financial risk after paying off their account? 

The substantial reduction in credit limit negatively affects your credit utilization ratio, potentially leading to a lower credit score. A lower credit score may result in higher interest rates for future credit, impacting your ability to secure favorable terms on loans or credit cards. Additionally, a sudden decrease in available credit could disrupt your financial planning and increase financial stress. I am requesting JPMorgan Chase Bank, N.A ( CHASE ) to provide me with a copy of my internal coding information on my account such as demographic information, race, ethnicity, consumer risk analysis etc.

JPMorgan Chase Bank, N.A ( CHASE ) account review procedure adversely affects a specific demographic ( e.g., individuals with a certain credit score or financial profile ), which is considered a disparate impact. Furthermore, the inconsistent information provided by JPMorgan Chase Bank, N.A ( CHASE ) representatives, coupled with the denial of my credit limit increase request, suggests potential disparate treatment. 

I kindly request the Consumer Financial Protection Bureau to conduct a thorough investigation into my case, examining the potential disparate impact and disparate treatment by JPMorgan Chase Bank, N.A ( CHASE ) towards me and consumers with similar profiles. I am also requesting the Consumer Financial Protection Bureau request and require resolutions to include victim compensation and change in JPMorgan Chase Bank, N.A ( CHASE ) practices that are causing disparate impact and disparate treatment to consumers. 

I appreciate your attention to this matter and look forward to a prompt resolution. 

Sincerely, XXXX XXXX, XXXX XXXX XXXX