US-Based Bank Forgives Canadian Customers’ Debts

Category: Business

Listening

Unlocking Word Meanings

Read the following words/expressions found in today’s article.

  1. wipe out / waɪp aʊt / (phrasal) – to erase or remove something
    Example:

    Watching funny movies helps me wipe out negative emotions.


  2. reimbursement / ˌri ɪmˈbɜrs mənt / (n) – the act of paying back someone a certain amount of money
    Example:

    The amount you paid is ready for reimbursement. You may get the money from the accountant.


  3. turn of events / tɜrn ʌv ɪˈvɛnts / (idiom) – a development or change in a situation or event
    Example:

    Larry’s daughter got sick, and the unfortunate turn of events forced him to borrow money.


  4. interest / ˈɪn tər ɪst / (n) – an extra amount paid for borrowing money
    Example:

    I borrowed $1,000 from the bank, but I ended up paying more because of the loan’s interest.


  5. substantial / səbˈstæn ʃəl / (adj) – describing something that has a significant amount or volume
    Example:

    Mary kept wasting electricity, so she had a substantial electric bill.


Article

Read the text below.

Chase Bank canceled all credit card debts of its Canadian customers.


The US-based bank made the decision last August. The debt cancellation applies to customers with Amazon.ca Rewards Visa and Marriott Rewards Premier Visa credit cards. Chase Bank believes that the decision to wipe out the debts was necessary so that it could complete its exit from the Canadian credit card market.


Chase Bank decided to exit the Canadian credit card market because of the end of the credit card partnership between itself and Amazon.ca, Amazon’s Canada-based website. It began its exit from the Canadian market by closing all credit card accounts in the country in March 2018.


Initially, Chase Bank told customers to push through with paying their debts despite their cards being canceled. However, the bank decided it was in the best interest of all parties, especially its customers, to erase the debts. Reimbursement of customers’ latest debt payments made after the announcement was also part of the debt cancellation deal.


Canadian customers were overjoyed by the unexpected turn of events. Douglas Turner, a Chase Bank client whose debt amounted to Canadian $6,157 in his card, expressed surprise and delight after hearing the news. He estimated that he was able to save more than Canadian $7,500 given that he no longer had to pay the debt and its interest.


Paul Adamson, another client who owed Chase Bank a substantial amount of debt, was likewise stunned. Adamson was skeptical at first and immediately called the bank after seeing he had no more debts.  When he received a letter confirming that he did not owe the bank any money, he felt relieved and thankful to have one less thing to worry about.


Viewpoint Discussion

Enjoy a discussion with your tutor.

Discussion A

• Do you think Chase Bank’s cancellation of credit card debts is a wise move? Why or why not?
• How do you think Chase Bank’s decision can affect its business?

Discussion B

• What do you think are some possible reasons why a business exits a certain market? Discuss.
• Do you think exiting a certain market is a good or bad thing? Explain.