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  1. #1

    Default Bank Closed Credit Card Accounts

    My question involves collection proceedings in the State of: California.

    I have two credit card account with Chase Bank. They closed both my accounts without any preior notification. I have new but impecable credit history. The first time I called to fond out why my card had been denied at a store, they lied and told me that Experian recommended that my accounts be closed. When I contacted Experian they said that they would never do such a thing. I called the bank again and told me that they would never say Eperian recomend that an account be closed. The second explaination I received was that even though I was never late on my payments and that I always paid more than the minimum, that I was too close to my credit limit and that was considered a risk. Now, if I am not to reach a certain limit, then why is is established in the first place? Besides, they cannot assume that I will not pay it anymore, or that I will pay it in full. This is ridiculous. I'm furious. I have been trying to build up my credit for the past 2 years because I'm goinf to buy my first home. Now I can't!!! They have ruined my credit. What can I do about this? I am in desperate need of soem legal advice. I can't leave things they way they are.

    Thank you.

  2. #2
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Bank Closed Credit Card Accounts

    There is nothing you can do. If the bank wants to close the card for any reason, they can do so.

  3. #3
    Join Date
    Apr 2007
    Location
    Il.(near StL,Mo.)
    Posts
    5,252

    Default Re: Bank Closed Credit Card Accounts

    This isn't unusual for a bank to do for various reasons.

  4. #4
    Join Date
    Apr 2009
    Location
    Inland Empire
    Posts
    1,410

    Default Re: Bank Closed Credit Card Accounts

    Quote Quoting Betty3
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    This isn't unusual for a bank to do for various reasons.
    ... And it wouldn't "ruin" your credit. Not paying would "ruin" your credit.

  5. #5
    Join Date
    Jul 2008
    Posts
    853

    Default Re: Bank Closed Credit Card Accounts

    It DOES hurt your credit, for two reasons:

    1 Any account marked "closed by credit grantor" has a negative impact on your score

    2 Closing the CC accounts reduces your available credit, thus raising your utilization percentage. This also has a significant negative impact on your score.

  6. #6
    Join Date
    Apr 2009
    Location
    Inland Empire
    Posts
    1,410

    Default Re: Bank Closed Credit Card Accounts

    Quote Quoting divemedic
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    It DOES hurt your credit, for two reasons:

    1 Any account marked "closed by credit grantor" has a negative impact on your score

    2 Closing the CC accounts reduces your available credit, thus raising your utilization percentage. This also has a significant negative impact on your score.
    Hurt yes; Dive, but ruin is a bit over the top.

  7. #7

    Default Re: Bank Closed Credit Card Accounts

    Quote Quoting priscilla_bia
    View Post
    My question involves collection proceedings in the State of: California.

    I have two credit card account with Chase Bank. They closed both my accounts without any preior notification. I have new but impecable credit history. The first time I called to fond out why my card had been denied at a store, they lied and told me that Experian recommended that my accounts be closed. When I contacted Experian they said that they would never do such a thing. I called the bank again and told me that they would never say Eperian recomend that an account be closed. The second explaination I received was that even though I was never late on my payments and that I always paid more than the minimum, that I was too close to my credit limit and that was considered a risk. Now, if I am not to reach a certain limit, then why is is established in the first place? Besides, they cannot assume that I will not pay it anymore, or that I will pay it in full. This is ridiculous. I'm furious. I have been trying to build up my credit for the past 2 years because I'm goinf to buy my first home. Now I can't!!! They have ruined my credit. What can I do about this? I am in desperate need of soem legal advice. I can't leave things they way they are.

    Thank you.
    Chase did exactly the same to me. Funny thing is, before Chase bought my cards from WAMU, I had no problems, no late payments either for few years.
    After, Chase raised interest and two monts later they closed my cards. As far as I'm concerned, they can shove it.......
    I had other CC (different company)that I paid my balances offin full after making just afew payments and they would take my credit line away down to 350!

  8. #8
    Join Date
    Aug 2009
    Posts
    5

    Default Re: Bank Closed Credit Card Accounts

    I am a new member, and not a lawyer. But in a former life- I was a mortgage processor. My understanding is- I would get someone (cheap & reliable- pro bono? church related?).
    And go over this with them.
    - Maybe, once reviewing your credit history, they can discover why these (outrageous) actions may have taken place.

    If they cannot find any good reason- YOU HAVE RIGHTS!
    - Last I knew, if an entry on a credit report is incorrect or the company cannot substantiate WHY it gave that report- it MUST remove it.
    - Last I knew, You had the RIGHT to add ANY note to your credit report that you wanted to- at any length! And explain (Once you are SURE theres no reason- what happened. You have the right. With NO limitation on limit of words.
    - Of course I would defer to the recommendations of more Senior members-like Mr. Knowitall on this.
    But you DO have rights about your credit report & whats ON it!
    Take care & have peace- God can work out bigger things than this-
    artcat20

  9. #9

    Default Re: Bank Closed Credit Card Accounts

    This type of thing has been happening a lot lately. This article explains how credit card companies use universal default to try and protect themselves against losses. You might have gotten caught up in that?

    http://www.spendonlife.com/blog/cred...py-girlfriends

    I think that later this year when the new credit cart legislation goes into effect they will lose this ability. We might see some interesting moves ahead of that.

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