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For many consumers having their credit card debt eliminated is a dream come true, but in general, it is a rare occurrence. But that is exactly what happened for Chase cardholders in Canada because Chase has erased the debt of people who had the Chase Amazon.ca Rewards Visa credit card and/or the Marriott Rewards Premier Visa credit card in their wallet.
Chase announced this news on July 27, 2019, with cardholders discovering that they now have a zero balance with Chase, and this will be reflected the next time they check out their credit report. Cardholders who are concerned that this may negatively affect their credit score can breathe a sigh of relief because it won’t. According to all reports, there will be no negative outcomes for them due to this decision, just the cancellation of their debt.
This news comes more than a year after Chase decided to permanently discontinue the Chase Amazon.ca Rewards Visa credit card and the Marriott Rewards Premier Visa credit card in Canada. That announcement was made on March 15, 2018.
At that time they also decided to shut down their credit card operations in Canada, after being in that market for more than a dozen years. They also told cardholders that it was business as usual in terms of payments, so they should keep paying down their debt as usual. But that has all changed with this reversal by Chase.
The cost of erasing Canadian debt
People who are wondering just how much this reversal cost Chase will have to keep pondering that question because they have not yet disclosed how much money it cost them or how many consumers had their debt forgiven. That said when you consider the fact that Chase is worth more than. 2.5 Trillion dollars, the cost of the debt forgiveness for Canadian cardholders is likely to be affordable for the bank.
Why would they forgive the debt? They may have decided that it was the more cost-effective option when they are trying to close down their operations in Canada.