Chase Account Freeze due to Financial Review

[Update 4/20/18: added a fifth cause.] [Update 1/8/18: We’re hearing more and more people getting shut down recently. I also added a fourth cause of shutdown being large spikes in spend on existing cards. Lots of people are not having success getting reinstated. Reposting this as a warning.]

This is a guest post from my buddy Allen. He has some experience with getting Chase accounts frozen and released multiple times. I also added a few notes of my own and Final Thoughts at the end.

Remember Chuck’s recent post on Chase Cancelling All Accounts of Recent Card Applicants who they Deem Risky? Actually I believe the process they went through are Chase Financial Review (FR). We’re used to hearing about Amex FR, but apparently Chase recently introduced their own review process too.

Introducing CHASE Financial Review

My FR Story

I was newly approved for the Amazon Prime Rewards Visa Signature card in March and British Airways Credit card in April. In mid-May my cards were declined. When I contacted Chase on the number on the back of the credit cards, after some verification questions the representative stated she could not access my account due to “periodic review”. The representative stated it is not a fraud concern, but a periodic review of credit report and a specific team handles it.

After several more calls on both accounts and reaching out to the “periodic review” team, I was able to gather the following info.

What is Chase FR?

Sometimes an account goes through “periodic review”. You will not be able to use the account in question while it is under review. Think of the process Chase’s version of FR.

It’s important to realize that this is an individual credit card freeze. Unlike Amex, Chase doesn’t freeze your entire card portfolio. I can still use all my other Chase cards as normal except the ones under review.

You know you are under Chase FR when your card gets declined. When you contact front-level reps, they can’t access the account, or will tell you to wait maximum of 10 business days, or that someone will call you.

My significant-other also went through the same review process a few months ago on her Ink Business card. The new Ink Business card was declined and frozen for several days.

What Causes It?

The common indicators seem to be:

  • Brand new Chase accounts (regardless of how long you’ve been with Chase)
  • Lots of recent hard pulls
  • Suspicious usage of the new account such as large transactions or gift card purchases
  • Sudden large spike in spending (in the tens of thousands of dollars)
  • Perhaps high credit limits (with Chase, or maybe even with all banks?) (source)

Possible Outcomes

There are three possible outcomes of the FR:

  1. Shutdown: This is what got a bunch of people shutdown recently for people that had fairly short history with Chase. Note that this decision is potentially reversible. See Chase Cancelling All Accounts of Recent Card Applicants who they Deem Risky
  2. Clearance: After two weeks under review I was again able to use my accounts normally.
  3. Partial result: This isn’t common, but we’ve seen a report of slashed credit lines and reports of shut down which did not affect all business cards.

How to Deal with Chase FR

There isn’t really anything to do on your end during the review. In fact, if you happen not to use your credit card for a couple of weeks, you may never notice that you were ever reviewed. You can call the department directly at 1-800-290-1316, but they can’t help you until the review is actually finished.

The only indication of the FR in my case was that Chase hard-pulled me (Experian). They never told me they’d do it, I just found a pull on my credit report. My SO didn’t get any hard pull during her FR. [I suspect the hard pull does not come in most cases since they take information off the credit report that they’ve just recently pulled.]

If you do get shut down, you’ll get a letter from Chase indicating such. Before that, you won’t get any sort of communication.

Tips

  1. Do not go crazy with spending on new Chase accounts. My suggestion would be to wait at least wait until the initial 90 days has passed before MSing.
  2. Avoid obviously red flags such as gift card purchases if you can.
  3. The longer history you have with Chase, the better.

My FR Timeline

  • March 31 – approved for the Amazon card
  • April 27 – approved for BA card
  • May 12 – BA card got frozen (after giftcards.com purchase)
  • May 14 – Amazon card got frozen (after large Amazon gc transaction)
  • May 18 – Chase pulled my credit report
  • May 30 – both accounts were unfrozen on same day

Final Thoughts

While many people have gotten shut down by Chase, it’s interesting to know that there’s actually an FR process during which time the accounts are frozen and reviewed.

The review process seems somewhat similar to the Amex FR process, except that Amex freezes all accounts and asks for your tax returns while Chase freezes specific accounts and might even hard pull. Also, Amex doesn’t usually shut you down while Chase does.

Importantly, the process seems to always start with one or more cards being frozen for review, eventually often resulting in all Chase cards being shut down.

As noted, many people are able to get their accounts reinstated upon request or official complaint. I wonder if some these cases never really got them reinstated, rather were naturally reopened after the review.

Please let us know if you’ve experienced a Chase FR as well.
    Chuck
  • On January 8, 2018, 15:45

View Comments (162)

  • I recently applied for American Express got $6000 h capital one and got approved for $2000 & $1000..this was the 4th card I applied for in a short period of time and chase froze my account with no type of notice and my account is under review. What can I do ? What should I do ? Who do I call? & why is chase doing this even after they said I got approved and I got the card. They ask me to verify all my information multiple times and I answer it and my account is still locked. Please HELP.

  • My account is apparently under review. I have 2 Chase cards. 2! No big spending on either of them. A Freedom open 10+ years and a CSP open 1.5 years. Yes, I even kept the CSP after the first year. They also have my mortgage. I have an 880 FICO, never delinquent, pay off the cards every month, currently owe less than $1k over both cards on $20+k credit limits, etc. I recently applied for a Chase Ink Preferred and I did apply for a Savings account through them more recently but neither of those has been approved yet and I guess they won't be now. Before this started, I decided to add my Chase Freedom card to Apple Pay. They apparently require you to call in for that just so they can send you a text message with a code and have you repeat it to them, which normally doesn't require you to talk to a person but they require it on this. Whatever. I called in and verified, then tried to add the card to my watch 5 minutes later and they wanted me to call in AGAIN. I just decided to use my phone. Then I tried to purchase a $500 gift card with my card using Apple Pay and they sent me a text message asking if I was doing the transaction. I told them yes, but I still couldn't do the transaction and had to call and verify my information yet AGAIN and assure them that I had my card physically in hand, and now I am under review. For using my card in a perfectly legal manner. Are these "reviews" even legal considering that they don't allow you to use your cards for weeks with no notice and no explanation and no option to expedite the review? I can't even login to my Chase account to check anything on my mortgage. My entire account is locked. If it is legal, it certainly sounds like it shouldn't be. I did report it to the CFPB (Consumer Financial Protection Bureau).

    • This sounds like a lot like the walmart chase pay mess when they launched it like 6 months ago. It kept triggering fraud to lock my accounts and I couldn't log in. I seriously doubt you will get shutdown over it.

  • Add me to the list! Here is my story. My checking account at a non-Chase bank was accessed fraudulently so the bank shut down my account and opened a new one. It just so happened that I had a Chase payment scheduled which was returned since the account was closed. No big deal I thought and made the payment the next day from the new account. About a week later I bought two Visa GCs with my Freedom and then my accounts were frozen. Called Chase and was told to wait 10 days because my relationship was under review. ALL Chase accounts frozen. About three days later my Ink cards stopped working. I called Chase and was transferred to the Fraud Operations department. They said all account have been closed permanently. I said I would like them reopened and they said they would submit a request for reconsideration and proceeded to ask questions about the returned payment, gift card purchases (I did some MS on my BA card for the signup bonus), and that’s it really. Three more days later a really rude and cocky prick called and said the bank’s final decision is to close ALL account permanently with no option for reconsideration. So I asked the prick why and he kept referencing all of the credit card accounts I have opened in the past two years that they were concerned with. I had only one with Chase one year ago. I did use my Ink cards for Staples VGC purchases but did not max out the cards - not even close! I’ve probably had like 15 cards over the past 24 months but I have an 800+ FICO, zero credit card debt, never a late or missing payment, very high income and Chase closed all my accounts. They kept saying they had no issue with anything except the number of new accounts I have opened. Most are closed now anyway. He did admit the returned payment flagged my account but that was not the reason for account closure since they saw the payment hit the following day. So the moral of the story is NEVER have Chase get human eyes on your accounts! When I win Powerball this weekend you can bet I won’t be depositing my winnings at Chase.

  • I am going through a nightmare with Chase, I am an Air Force Vet so I get free checking and all associated I.e. checks,money orders free. Well my husband has his account as well he is not a vet but he gets the same consideration. To cut to the Chase we are going through a divorce he is very abusive as well as heavy drinker he has always given me any money for bills ,court ordered through Chase Quick Pay done this for years , what I'm saying he has a long history "verifiable" of transferring me money this was. Which he did last weekend he still owed me some money, well he got drunk came to my home and got out of control I made him leave and told him I couldn't have him coming back around so out of retribution, being an Ass he reported to the bank the quick pay he sent was fraud ??!!!!? I went to put gas in my car the next day and found my card didn't work?!! Long story short I've called the bank and am getting the run around they may take 45 days to INVESTIGATE this??!! I have told them the entire story that my account is always in good standing "his is not" they can see the years of him sending money to my account this way for years he works out of town often. And that I am his WIFE! And that he is doing this because of my leaving him rec and I'm getting a lot of oh how awful, I wish I could help comments but told there is a "back room" where this decision is sorted out and I cannot speak with them ??!! So even the money I had in my account I can't get to ??! I'm flabbergasted, this is unreal I don't know how many times he has gotten drunk out of town lost his card had to request a new one and then dispute charges?? I have a solid history and its as though I can't even give my statement to the "backroom"?? UNBELIEVABLE!?what can I do HELP PLEASE SOMEONE!! I am now late making my Amazon Rewards Card "yes a Chase card" because I can't get to my funds??

    • Next time leave out all the unnecessary details its hard to follow your rant. But, I would think eventually Chase will clear you - then you can pay your Amazon card with your newly released Chase funds and ask them to waive the late fees because you couldn't pay during the investigation.

  • Do you think a FR from Chase is possible if we alert them beforehand of a large purchase $15k? Need to book a cruise for a family reunion and planning to put everything on my csr. I plan to call to let them know of the large purchase and get the okay. I don't normally spend that much, maybe $1k monthly so this is definitely out of the ordinary behavior. Thanks.

    • the second after my wife's WOH card got activated we put on $5k in insurance (Car and homeowners) and they didn't even blink... the second after activating her freedom I bought a $500 vgc at walgreens and they did the fraud text...

    • Not sure why nobody answered you, but I would say it would not be an issue as long as your credit limit would support the purchase. Things like gift cards and bank account funding trip the fraud alert way faster because they are so easy to convert to cash - 90% cash payout on resale of stolen GC's is an awesome payout to a crook. On the flip side, cruise tickets with a reputable company - not so much. If you are that worried, ask the cruise line to split the purchase between your other cards. I know - you probably want to use the card with the best return and insurance.

  • Me and my sister's accounts was closed last week. We didn't call chase, because the reason on the mail from chase is "too many new account" and that's totally right :( I opened more than 10 credit cards in 1,2years from chase, amex citi etc.... my sister opened 5 cards from chase 1 from other in a year. I think the case of my sister was acceptable until last year but not now. It's obvious that chase become more strict than before... I just hope someday I can open new account from chase maybe after one or two years.

    • Do you both share the same household address or are AUs with one another on any Chase cards? Otherwise I don't see how both your accounts would be affected at the same time.

      Did you open up all those new accounts and then go back for another Chase card (non 5/24 like the Hyatt, IHG, RItz), which is when they did another hard inquiry and found out about those other card?

  • I applied for chase freedom card last month and got approved. Two days ago, I received my card. Yesterday, when I first wanted to use it for purchases, it was declined. I called customer services and the rep told me my account was closed while I haven't done anything. Then the rep suggested me calling 1-800-290-1316. The new rep told me that the reason why they close my account is because my credit history is not long enough. But my credit history length is over 1 year and I think it is ok for most chase cards (at least for applications). I think myself is some sort of "most" common applicant. This shutdown is unbelievable.
    They have submitted a new review for me. Hopefully they can reopen my account. I feel it is so weird and unfair.
    I post this comment because first I want to report this dp and second if you have any thoughts which can help me out, plz let me know. Thx!

      • glad u got your account back and welcome to the game. dont be like the other idiots on reddit having ridiculous FOMO. the rabbit doenst win. turtles do. you need to go study more. you only assume your profile is the “most common applicant" because thats all you see. you think this game is new? No. your profile is the "most common applicant" RIGHT NOW which Chase doesnt want since they are fully aware of the game. you need to go slow and build your profile. even worse if you are on some type of visa. more scrutiny. this is no different than building a job resume. companies hire n00bs all the time, but they want the best n00bs and even better if you have a huge track record.

  • DP (meet 3 of 4 listed possible triggers for Chase FR, but haven't experienced FR). In past year, I opened three Chase credit accounts within four months, 6 hard pulls in a 6 month time frame (including three from Chase), up to $5k spikes in monthly spending on specific accounts. However I do not MS (not with GCs anyways). To date, no FR. For background, my oldest Chase accounts are ~30 years old (Chase bought out the bank that bought out the bank the accounts were originally opened with). My oldest Chase credit account is ~15 years old.

      • I guess I should be good buying gift cards at Krogers.... maybe I should chill a bit... 8k per month may look like a bit much for groceries... possibly...

  • I think my SO's wife is under review, only 1 CC, Freedom.

    I lost online access the day after I added to Samsung Pay and after the 2nd transaction using SP, it was denied for about $300.

    When i called to ask, they said it would take about 10 business days and I cant use the account.

    • My SO's account was shutdown and we lost online access to the account.

      After a recent review of y our account and credit information, we decided to close the credit car account above.

      Reason was:
      Number of cred card accounts
      account not used as intended

    • If I understand this correctly the lesson here is just don't have a mistress. Not only are they expensive, but they cause a Chase FR.

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