Why More Pilots are Being Allowed to Grow Beards and a Big Reason for Credit Card Shutdowns

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About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. I wouldn’t wish for any churner’s accounts being shutdown ever, but I do understand it when it’s people who’ve had trouble with the law, if Chase sees a risk or doesn’t want to be associated with them. I don’t know about you, but I wouldn’t pay $15,000 to the US government if I hadn’t done anything. And companies rarely admit wrongdoing.
    Clearly Chase was not pressured to shut this person’s account down, but rather the initiative came from Chase itself. Nice try deflecting blame onto the government.

  2. Everyone in America should be required to read that article about accounts getting shutdown. It should be required in every high school civics class.

    So now the government overlords have fined the banks until they have caved in and turned into the regulators themselves, cleverly insulating the government overlords from recrimination.

    As the article points out, even Stormy Daniels got shut down.

  3. Umm, it’s not the regulator’s fault that banks can shut down your accounts for any reason they want. If anything regulations aren’t strong enough to prevent banks from doing so. We need anti money laundering regulations and we also need regulations to stop banks from enforcing those regulations lazily by just shutting down people without any reasonable evidence. This is why we need the CFPB to go after banks.

  4. Gary,

    thanks for the note on Chase shutdowns.

    However, if you read the below articles (of there are which many) you will see that this is not likely a case of “overzealous regulators” regardless of what the Chase Reserve cardholder might claim.

    Instead, he paid a fine for the first and largest health health care fraud in the State of Vermont’s entire history, and there were allegations of issues dealing with ongoing patient safety, as well as improper kickbacks for utilizing his company’s software.

    Finally, as the cardholder was an Indian national, and apparently not a US Citizen, probably did not help matters any, as well.

    https://www.politico.com/story/2017/05/31/health-records-faulty-software-239004

    https://www.healthcare-informatics.com/news-item/ehr/eclinicalworks-will-pay-155m-settle-false-claims-act-allegations

  5. He may have paid a modest fine as compared to the owners of the company, but he was a product manager of the product at issue and it is alleged that the product manifestly failed its purported functions because of ample purposeful fraud — something he would be well aware of.

    Moreover, as I have noted, his cause was probably not helped by his not being an American citizen.

    Finally, he is not “shut out of the banking system” as you wrongly contend as he was able to obtain a mortgage and likely has been able to retain other credit card relationships.

    The right to holding a Chase credit card is thus far not considered a fundamental human right, thankfully.

  6. I suggest the defenders of the capricious actions by Chase – and Bank of America is doing the same, albeit for an ostensible different reason – be reminded of the famous line “… And Then They Came For Me …” (In case you don’t know it, google it.)

  7. When Chase and United entered into an agreement is it likely there is any information shared between them in determining who United targets with the invitations to apply for the Chase United credit card?
    Or is it some blanket permission from Chase that United can target anyone they want in their database with an invitation to apply and then it is up to Chase to screen them?

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