'It's Crazy': Chase Bank Forgiving All Debt Owed by its Canadian Credit Card Customers
martyb writes:
'It's Crazy': Chase Bank Forgiving all Debt Owed by its Canadian Credit Card Customers:
Bank says this was the best way to exit Canada after folding its Amazon and Marriott Visa cards
Finally, a good-news story about credit card debt.
U.S.-based Chase Bank is forgiving all outstanding debt owed by users of its two Canadian credit cards: the Amazon.ca Rewards Visa and the Marriott Rewards Premier Visa. The bank retired both cards last year and said it's wiping out cardholders' debt to complete its exit from the Canadian credit card market.
[...]After 13 years in the Canadian market, Chase decided to fold its two Visa cards in March 2018.
The bank - which is part of global financial services firm JPMorgan Chase & Co. - wouldn't say how many Canadians had signed up for the cards or how much debt was outstanding.
[...]Credit card rewards expert Patrick Sojka said Chase likely concluded that debt forgiveness was ultimately cheaper than continuing to collect credit card payments in Canada.
"They're still probably paying taxes, paying accountants, and for them, they just probably worked it out and [said], 'Let's just forgive the debt and fully get out of the country.'"
But he's stumped as to why the bank didn't instead opt to sell the debt to a third-party debt collector, which would allow Chase to recoup some cash.
"It is definitely a head-scratcher, for sure," said Sojka, the founder of Rewards Canada, a site that tracks reward programs.
Chase told CBC News it chose the debt-forgiveness route so that everyone benefited.
"Ultimately, we felt it was a better decision for all parties, particularly our customers," spokesperson Maria Martinez said in an email.
The windfall is generally not considered taxable unless the credit card was used to purchase items for their business. As always, check with your tax advisor if you are at all unsure.
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