Consumer complaint received 2024-02-12 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Getting a credit card — Application denied
Company: JPMORGAN CHASE & CO.
State: NC

Complaint narrative:
The application used to apply for the Chase XXXX XXXX is evidence of an offer from Chase ( offeror ) inviting me ( offeree ) to make a binding contract. An offer is part of contract negotiations where a party agrees to do or not do something in exchange for consideration. An offer must be stated and delivered in a way that would lead a reasonable person to expect a binding contract to arise from its acceptance. An offer gives the offeree the ability to accept and form an enforceable contract. When a valid offer is made, an acceptance by the offeree creates a binding contract. An offeror generally can not retract the offer once the other party has accepted. 
The offer to contract was a simple exchange between Chase and I. In exchange for my signed promise to pay ( application ), Chase would open an account in my name and issue Card ( s ) as I direct. The said offer was accepted for value and consideration and the contract issued back to Chase for the promise of performance to provide the said consideration. Once fully executed the said application became a security, specifically an instrument in the form of a promissory note evidencing a promise to pay a monetary obligation. The pricing information, terms and conditions and other certifications formed a Security Agreement ultimately giving Chase a Security Interest in the Security. This is evidence of Chase taking the security by means of a purchase however, Chase did not provide me with any consideration when they purchased the executed application which is a financial asset ( 12 CFR 360.6 ( 2 ) ) from me ultimately breaching the contract for failure to provide consideration. 
Failure of consideration is a concept which relates to the law of contracts. In contract law, a party trades something of value in exchange for consideration. The term failure of consideration implies that the consideration, which was sufficient at the time of bargaining, has ceased to be sufficient. This could happen if the consideration offered becomes worthless or miniscule compared to the value of the contract, or if the party promising to furnish the consideration fails to do so. It is a failure to provide consideration if Chase invites me to make a contract by way of an offer and I accept the offer under the impression that the consideration that I will have an account opened in my name and Card ( XXXX ) issued as I direct and once the offer is accepted you take the financial asset and provide miniscule consideration in exchange for it. This is evidence of misrepresentation. 
A misrepresentation is a false or misleading statement or a material omission which renders other statements misleading, with intent to deceive. Misrepresentation is XXXX the elements of common law fraud, and other causes of action for fraud, such as securities fraud. Securities fraud is the misrepresentation or omission of information to induce investors into trading securities. 
" Any false representation of material facts made with knowledge of falsity and with intent that it shall be acted on by another in entering into contract, and which is so acted upon, constitutes 'fraud, ' and entitles party deceived to avoid contract or recover damages. '' XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. 
The primary definitions from the Securities Act of 1933 and the Securities Exchange Act of 1934 similarly define securities as specific instruments such as a note, stock, treasury stock, security future, security-based swap, bond, debenture and any instruments that fall into broad categories like investment contracts or any interest or instrument commonly known as a security ( see 15 U.S.C. 77b ) Under 17 CFR 240.10b-5 - Employment of manipulative and deceptive devices It shall be unlawful for any person, directly or indirectly, by the use of any means or instrumentality of interstate commerce to employ any device, scheme, or artifice to defraud, to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading, to engage in any act, practice, or course of business which operates or would operate as a fraud or deceit upon any person, in connection with the purchase or sale of any security. 
Chase misrepresented and omitted to disclose within the terms and conditions of the application certain facts in order to induce offerees into unknowingly selling Chase securities and regardless of satisfactory credit rating or approval or denial Chase during the regular course of business purchases the applications and is able to use the applications as securities that can be pledged as collateral to the XXXX XXXX at the XXXX XXXX XXXX XXXX XXXX XXXX to receive advances which in turn creates money. Chase also can securitize the applications by way of asset securitizations in which applications are used as receivables and sold to a special-purpose entity created for the securitization activity, typically a trust. The trust, in turn, issues securities, commonly referred to as asset-backed securities that are secured by the receivables. The trust uses the proceeds from the sale of such securities to pay the purchase price for the receivables. Chase also takes the application as a promissory note and credits an account creating new money. The above-mentioned Financing Activities are further evidenced and on record within Chase 's Securities and Exchange Commission filings . 
It is not necessary for rescission of a contract that the party making the misrepresentation should have known that it was false, but recovery is allowed even though misrepresentation is innocently made, because it would be unjust to allow XXXX who made false representations, even innocently, to retain the fruits of a bargain induced by such representations. XXXX XXXX XXXX, XXXX XXXX XXXX XXXX. 
SETTLEMENT PROPOSAL I am asking for Chase to provide me compensation for the security which they have no right to retain. Therefore, I propose that Chase opens an account in my name and issues me the Chase XXXX XXXX with open-end credit and provides that the accounts monthly balance is secured by the payment Coupon associated with the monthly statement to be used as a Negotiable Instrument payable in U.S. Dollars and clearable through the US banking system. 
This Breach of Contract and Fiduciary Duty could have interesting consequences as I could be forced to contact and file complaints with various Federal Agencies, including but not limited to The Securities and Exchange Commission, The Federal Trade Commission, and the Consumer Financial Protection Bureau for Securities Fraud, violations of Consumer Protection Laws, and Unfair, Deceptive, or Abusive Acts or Practices. An investigation may uncover a scheme in which securities fraud, misrepresentation and omission of information was used to induce investors into trading securities that Chase uses to further enrich their card business while depriving the underlying account holders their intangible right to honest services. I firmly believe that an amicable resolution is in the best interests of both parties. However, I am fully prepared to pursue arbitration among other legal proceedings that would be necessary to uphold my intangible rights and protect my own interest in the executed application which is a financial asset and a security.

Company response to consumer: Closed with explanation