From an update to the CBC story that Dallas News linked to,
Quote: To note: Following the publication of this story, some readers inquired if the lucky recipients would have to pay income tax on the amount of debt they were forgiven. The short answer is, they shouldn't — as long as they used their cards for personal purchases, said Jamie Golombek, managing director of tax and estate planning with CIBC.
"Think of it as a tax-free windfall," he wrote in an email to CBC News.
However, customers who used their cards to buy items for their business may have to pay up at tax time. That's because their debt forgiveness could be viewed as income by the Canada Revenue Agency, said Golombek.
Chase Bank is never quoted providing the total of outstanding debt being written off, but I wouldn't be surprised if it is less than $100,000 (Canadian dollars, of course). They have had 16 months to collect balances on closed accounts and the going rate for selling credit card debt to third party
enforcerscollection agencies is under 10 cents on the dollar. I've never seen either of the cards Chase cancelled.