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  1. #1
    Join Date
    Dec 2008
    Posts
    2

    Question Can I Sue a Bank Over Closed Credit Card Account

    My question involves personal finance in the State of: Florida/Utah(I live in Florida and the bank is in Utah) I just found out my credit card issuer (Merrick Bank) cancelled my credit card yesterday. When I called I was told that it was because I have opened other accounts recently. I have had this card for years and have never been late/gone over limit/etc. I actually sent them over $1700 last month to pay it off in full. All other payments have always been more than minimum required. Usually 3-4 times miinimum. Not to mention they have given me regular credit line increases every 3 months. But now, through their actions, my credit rating will go down because the available credit is smaller while my debt stays the same. No phone calls/emails to talk about it. No chance for me to cancel new accounts to keep this one active. Not to mention instead of canceling my account they could have frozen it and/or lowered my line of credit. My concern is how it will look on my report. Mathmatically I know my credit score will take a hit and not to mention this account will show up as cancelled by creditor. To say the least I am amazed that they would cancel me after I have held up my end of our agreement only to get cancelled because I was granted credit from other sources. Also, I could understand if my card was maxed out; it wasn't even close. Or if my other accounts(new and old) are maxed out; they are not. Not even close. I have not had a late payment for over 5 years! Nothing negative. It seems as if the computer kicked my name out just because I have new credit which I have not even used. Bottom line.......can I sue and win if anything whatsoever shows up on my credit report as a negative from this situation. Thanks.

  2. #2
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Can I Sue a Bank Over Closed Credit Card Account

    If they report the card as "Closed by credit grantor" it will indeed cause your score to fall, but there is absolutely nothing you can do about it, as that would be complete and accurate.

  3. #3
    Join Date
    Dec 2008
    Posts
    2

    Default Re: Can I Sue a Bank Over Closed Credit Card Account

    Hello and thanks for the reply. My main contention isn't that they did not have the right to close it, rather that they chose the action that is most damaging to my credit report when other alternatives were available. I would argue that they could have frozen the account and given me the opprtunity(as they are now) to pay it off then I could close it myself. The end result being the same for them and more positive for me. Or, they could have lowered my limit to the outstanding balance, thus reducing their potential risk. The whole situation doesn't sound right. Not late on anything for 5+ years. They issued me a card and continued to increase my limit on a regular basis. Then when some other creditor grants me an account, Merrick cancels me. Not even giving me an opportunity to cancel the new ones and/or letting me close it "voluntarily". Bottom line is they had other options to get the same results without blind siding me and trashing my report. I believe that any fair minded person would have to agree that since I had a spotless record with Merrick, then they should have at least chosen the path that would be the least damaging to my report. That would be my argument. Not that they didn't have the right, rather they chose the most destructive to my report. I also think that because I would pay it off every month or so, they weren't making as much in interest, thus resulting in my cancellation. Thanks.

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