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Credit Card Account Closures Without Any Notice

Tuesday, April 27, 2010 - 2:15 PM
Two FW members reported in this FW thread that Bank of America closed their credit card accounts without any notice. The accounts were closed for inactivity. If you want to keep a credit card account open, it's a good idea to use the credit card at least once every 6 months.

Has your credit card account been closed without warning?
1
Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
Rep Points: 123,675
1. Tuesday, April 27, 2010 - 3:59 PM
With all the mergers/takeovers in the past 5 years or so (MBNA, Fleet, etc.), I ended up with 6 B of A credit cards with a total credit limit that was quite substantial (>75k). So, one day I noticed one card was closed and the credit limit was set to zero. Hence I called in inquiring as to what's going on. They said with the current economic situation they were looking at every account and they decided that I had too high of a total credit limit (I don't use those cards for purchases and had used them mainly for 0% bts when they were still offered with a reasonable transaction fee - not anymore alas:-(

Unfortunately, they closed the oldest card and I wasn't happy about that (impact on credit score!). So, I negotiated with the csr and explained my priorities. They agreed to reopen that 'old' card and close a newer one (that had a lower limit than the closed one); in return, I agreed to have the old card's limit reduced as well, so I 'lost'/gave up about 20k in credit limit overall.

And yes, I've been using each and every card sporadically (every 4-5 months) to keep them active.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
2. Tuesday, April 27, 2010 - 5:17 PM
Same thing happened to me. A former MBNA card that ended up as a BofA card that I hadn't been using got closed, and BofA never notified me. I found out about a year ago that it was closed the previous fall when I tried to use the card, and then called and found out that the account was closed. I can't really blame BofA for closing an inactive card, but would it have killed them to at least notify me? It is such practices that are the reason for BofA's poor reputation regarding how it treats it customers. Incidentally, when I tried using the card, it was precisely because I was getting concerned about accounts being closed for inactivity, and had decided to use it for a small purchase -- too late!
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
3. Tuesday, April 27, 2010 - 5:42 PM
Thank you for calling Bank of America, we will now close all your accounts without balances and one with a low balance. We will also raise your interest rate on the accounts that are still open.

 

Wow! talk about going from 5% credit utilization to 90% in one phone call. And thanks to them doing that I can't get another card to balance transfer out.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
4. Tuesday, April 27, 2010 - 6:15 PM
I have had credit card accounts closed (with a warning to use it immediately or have it closed many years ago), but not any recently.  I have one unused card that was opened by the bank (not through a formal application) and has been active for over 10 years!  They keep sending me renewal cards and free balance transfer offers over the entire time since they opened the account.  I think why it has remained open for this long of a period is because they must be looking at my credit report and seeing my charge balances with my other accounts and trying to "lure" me to using their card instead.  I have been using this back since the early 1980s, so they must be willing to "stick it out" with me even though I haven't used the card.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
5. Tuesday, April 27, 2010 - 7:37 PM
@Wil: yup, BofA is my most 'hated' credit card company. They suck really badly in most respects (with no respect for customers, longstanding ones at that). I would never dream of opening a checking account with them despite (or maybe because) of all the new twists of so-called benefits they come up with for their accounts every so often. And their behavior during the financial crisis also speaks volumes. They are like the Micro$oft of the financial industry:-(

I will keep my BofA credit cards just because they still have a high credit limit and help me with my credit score.
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
6. Tuesday, April 27, 2010 - 7:43 PM
Oh, I almost forgot: around the same time I lost that one BofA card (maybe a few months before) I also got my Wells Fargo card first severely reduced in credit limit and soon after closed altogether (I had made the occasional small purchase - apparently not enough). That one hurt a bit, not because of the credit limit which was only 5k, but it was my first ever credit card that I obtained, so it had somewhat of an emotional value. Well, for sure I won't be sentimental about Wells Fargo anymore&@$#@&%&@
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
7. Wednesday, April 28, 2010 - 7:07 AM
@ Anonymous @5: That BofA card was the only one I had with them. I would never choose to do business of any kind with BofA. Back in 2008 my cousin and her husband got into serious financial trouble with credit card debt. They accumulated high balances and were making minimum payments, and thought they were doing okay until the credit card issuers starting raising the minimum payment amounts, at which point they couldn't afford the payments (in large part due to her having been out of work due injuries from an auto accident in 2006). She belonged to a credit union, but didn't have their credit card, and when she tried applying, on my advice, in order to transfer her balances to a card with a lower interest rate, she was rejected because by then her FICO score had declined too much. So, again on my advice, she called all her credit cards to explain her situation and negotiate a reduction in her interest rates. Every credit card agreed EXCEPT for one -- you guessed it, the hold out was Bank of America (in fact, BofA threatened to sue her). Incidentally, American Express had agreed to give her 0% interest for six months!
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
8. Wednesday, April 28, 2010 - 10:22 AM
I had a Chase credit card. Their rebate offer had gone somewhat below what I was being offered on my Citi card, so I moved over to using the Citi card. I figured at some time, I might go back to uising the Chase card if they started offering better again. It went unused for, I don't know, more than a year. 

Well, one day late last year, I got a notice in the mail from Chase that they had closed my credit card account and would report the closure to the credit bureaus. They said they had closed it three or four weeks earlier. (Why is it recommended NOT to close credit card accounts so as not to ding your credit rating?! Then the credit card company does this!) 

Now, ever since, Chase has been mailing me offers at least every other week to apply for its credit card! And they are offering me a much better rebate! 

Sorry Chase, you ****ed me with no notice to use my card or lose it. Now you lose my business. I'm not going to apply for something you just so rudely grabbed away.
1
me1004me1004343 posts since
Jan 16, 2010
Rep Points: 2,357
9. Wednesday, May 26, 2010 - 12:44 PM
Wellsfargo closed my credit card account without notifying me. I had limit of 9,000 and they cut to 2,000 6 months ago, and now its closed. I been wellsfargo customer for 17 years! I payed 2 wellsfargo home mortgages, never been late in payment! Now they closed my credit card just because i had too many inquires on my credit history. I have score of 690.

I have 3 other credit cards and none of them ever closed my account or lower my limit. Makes me so ****ed, specially when you tried to call and ask why to them, they act like robots. Zero common sense. They dont give damm as courtesy to let you know they are closing it, and they dont care if that card is your life line. After you talk to them on the phone they always say thanks for calling wellsfargo, we value your business. What ****ing joke
3
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
10. Tuesday, June 1, 2010 - 5:12 AM
Here it is Tuesday morning and I have gone from baffled to furious since Friday evening when I attempted to use my Chase credit card. Trying to process my payment via a Chase credit card rejection letters kept flooding my mail box.   I thought at first my error in submitting numbers...redid..by the third try I realized my card was actually being rejected.  I called Chase to be informed there would be no one available until this morning to advise me of why my card was cancelled.  My thoughts have gone from error on their part to possibly I was a victim of identity theft..someone was out there buying and using my credit and making my life miserable?  After reading so many posts online I have come to realize I am a victim of Chase and all those who abused their credit for years.  

My mortgage is paid off..I have no car payments, gainfully employed.. far from wealthy..but I have a decent amount of money in the bank...and guess who the bank is..of course CHASE.  So, if this situation is not cleared up to my likings today...I will be off bank shopping.  Banks are institutions that are supposed to build a trust between themselves and their clients.  How does one trust a bank that tossed their customer to the curb..no thought of how their credit is or will be affected?  

TOO BIG TO FAIL?  MORE LIKELY TOO BIG TO MAINTAIN SOME TYPE OF PERSONAL RELATIONSHIP WITH THEIR CUSTOMERS.  
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
11. Tuesday, June 1, 2010 - 10:31 AM
UPDATE:  Chase lending agent contacted at 8 a.m. and problem resolved.  They offered to reinstate all accounts closed.  I requested it be noted on the accounts that I closed and preferred to keep one open.  I understand that banks are under the gun and have to change the way they do business by downgrading accounts, closing etc.  There are many people out there who are a credit risk; however as I stated to them...when a customer is holding not only their credit card, but a sizable amount of assets on hand in their bank....correct procedure should be call the customer.  If a good business relationship has always existed...if you need to end the ties at either end...proper way to do it is by personal contact.  
1
AnonymousAnonymous2,281 posts since
May 9, 2010
Rep Points: 3,786
12. Saturday, June 5, 2010 - 4:42 AM
For the millions of consumers with bad credit and no credit, getting approved for a major credit card takes a lot of effort. Unfortunately, establishing credit is as equally challenging as re-establishing credit. Creditors consider both types of people as risky applicants. Thus, they are less eager to extend a line of credit. However, there are ways to get around this problem. Bad credit credit cards are intended to make it easier for some to obtain credit.

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1
erwinerwin2 posts since
Jun 5, 2010
Rep Points: 2
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