Consumer complaint received 2020-09-08
Product: Credit card or prepaid card — General-purpose credit card or charge card
Issue: Closing your account — Company closed your account
Company: JPMORGAN CHASE & CO. (NV)

I have been a Chase customer credit card customer since 2016. I have always made my payments on time and been what should be considered a good customer. Even when the pandemic hit early this year, I made sure that my payments were made to Chase on time. 

On or around XX/XX/XXXX of this year year, Chase closed all my accounts, didn't have the decency to notify me ( I guess chase likes to add the embarrassment of having a declined transaction being the first indication of any problem ), and refused to offer up any explanation as to why they would have taken this action. 

Though I am now personally aware of the horrible way this bank treats people, I wanted to see if I was unique or if this was being done broadly to customers. 

A survey of credit cards holders found that by mid XXXX of this year, approximately 1/4 of credit card customers had at least one account involuntarily closed, and that approximately 1/3 reported they had the credit limit on at least one card reduced. 

Credit cards, due primarily to their high interest rates, are a finding source of last resort for many families. Consumers have the belief that if their finances get tight, they can put things like food, fuel, utility payments, and other essentials on their credit card. For people who are really struggling right now to suddenly find that their emergency safety net is gone is not only disheartening, but the measures taken by banks that put consumers into this position in the first place are at least questionable and at most unconscionable. 

In XXXX and XXXX of this, the Federal Reserve Bank took extraordinary measures to free up liquidity with the understanding that the banks would make sure that adequate funding and credit be extended to consumers. They relaxed the supplementary leverage ratio, and vastly increased short term lending through Repo funds made available to the banks. 

It is now clearly evident that banks are not taking their position of influence in consumer liquidity seriously. I have been active on efforts to raise awareness to lawmakers previously, and now need to make sure they know both what the banks are doing as well as the fact that their commitments to get money into the system have not been met, and in fact, that they are restricting and eliminating lines of credit, which will have the inevitable effect of further righting constraints on the US economy. 

I intend to write every member of the House and Senate, and send those letters to both their DC offices as well as their home district office, and let them know what these banks are doing. Of critical importance are 25 members on the committee on Banking, Housing and Urban Affairs, the 19 senators on the Subcommittee of Financial Institutions and Consumer Protection, and the 59 House members of the Committee on Financial Services.  Additional efforts will be made to get in touch with these members and their staffs. 

I don't simply reach out with my personal story without suggestions as to how change can occur. This is a bipartisan issue that has an effect on consumers, businesses, and the greater US economy. So, I would propose a bill be presented that contains the following provisions : *Banks that reduce credit lines and close accounts of customers whose accounts are current and in good standing to prevent exposure can not afford to pay executive bonuses, so any bank engaging in that practice would be prohibited for the current fiscal year plus 2 additional years from the last occurs ce of this practice from issuing any bonuses to any manager or employee who earns in excess of {$50000.00} prior to bonuses. 

*Banks that reduce credit lines and close accounts of customers whose accounts are current and in good standing will be ineligible for any increases in Repo funds, and the Fed will have an  obligation to reassess their existing lines for short term funding to see if the current levels are overly generous for their existing business needs. 

*Banks will be required to lend out larger fixed minimum amounts to consumers based on the level of depository accounts they hold. 

Not since the Dodd-Frank legislation has such sweeping reform taken place, and based upon the painfully obviously lack of voluntary, consumer friendly actions, their ability to self regulate needs to be brought into question, and lawmakers are the ones that need to take action on this. 

In addition to congress, state legislatures are another route to get these reforms enacted. Banks that are not willing to abide by basic, ethical standards should be forced to leave states where this bill would be made law. 

Sometimes, it just takes waking up the right person who is willing to tell their story to policymakers in order for reform to occur. It seems this is now my torch to carry.