Yesterday, we were informed by a tipster that the federal government was cancelling the credit cards of General Michael Flynn’s wife. What’s more, we were told that there was a “reputation risk associated with the cancellation, and that it was not the first time the government had cut off the cards.”
After receiving backlash for cancelling the credit cards belonging to former White House National Security Advisor Michael Flynn’s wife, the bank has now reversed its decision. As of last Friday, the bank will renew the cards for an unknown amount of time.
Chase Reverses Its Decision To Cancel General Flynn’s Wife’s Credit Cards Due To “Reputation Risk”
on September 1, 2021 by Gary Leff
General Michael Flynn shared a letter on his social media account, indicating that Chase would shut accounts next month due to a “reputational risk.” The letter had one strange feature: the initial name of the person to whom it was addressed had been blacked out. Flynn’s credit cards were not revoked, as it turned out. His wife’s accounts were being canceled. Chase is reopening them despite the criticism.
Chase now claims that the letter was a mistake.
The reason of the’mistake’ was not revealed, but a Chase spokesperson said: ‘We’ve contacted our client to let her know that we made an error, and we apologized for any difficulty this caused.’
Traveling Quickly In the comments, Chai tells a tale of a family member whose Chase accounts were just closed. They’d begun using Chase cards a lot more, but after they indicated that they’d switched from an American Express card, Chase reopened their accounts, he said.
There are a number of factors that may make a bank wary of doing business with you.
- Here’s something that seems to be a scam. Your spending habits may make you seem to be a potential bust-out candidate. If you’ve been a good customer for a long and then suddenly start spending a lot, your circumstances may have changed, and you’re burning up your credit before defaulting.
- The term “reputation risk” is used here to describe a worry that banks may have for their own reason (how would it appear if their card was used to buy ingredients for a terrorist attack) or to reassure regulators. The federal government exerts influence over banks in terms of who they do business with – it isn’t enough for a client to be operating completely legally; regulators may not be able to outlaw firearms, but they may push banks not to do business with gun dealers owing to “reputation risk.”
Rather than canceling your account outright, American Express will typically place you under financial review. It is unexpected, and the power to charge is revoked. Although the procedures are comparable in some respects, neither the letter to General Flynn nor the letter to Rapid Travel Chai’s family member said that the decision could be appealed — even though the closures were overturned in both instances.
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