Inactive Credit Card Account Closed

What is the name of your state? California.

I have a credit card with People's Bank in Connecticut. They are regulated by the CT Department of Banks as a state chartered bank.

They sent me a letter on 1/6/3 saying that since my credit card account had not been active for more than six months that they believe it is in their's and my mutual interest to close my account
and that for my convenience, they have initiated the account closure for me.

I do not want my account closed, my account is in good standing with a zero balance which I rely upon in emergencies. I called to ask that they reopen the account and they said they would only do so if I reapplied to open the account again and they ran a credit check.

I believe that at least with some banks (maybe not regulated by CT) an institution must reopen a credit card account if it is closed by the consumer within 90 days of the closure. The CSR said this did not apply to People's Bank.

I feel this is an unfair banking practice and wish for my account to be reopened without having to reapply since a credit check would nnegatively impact my credit rating due to the extra inquiry. Furthermore, closing the account also negatively impacts my credit rating since the percent of my credit available for use still is decreased with the closure of an account and the average age of my accounts goes down.

Why should my credit rating be penalized by the actions of a bank that I have no control over?

How can I get them to reopen my account with out adding an another inquiry to my credit report?

I have a fair issac score of around 700.

Thanks for your assistance.

[bigun]

The TOS you signed when you applied for the card gives them the right to close the account at anytime. If you wish to reopen about all you can do abide by their policies.
Personally, I'd find another card issuer.

Many card issuers are cutting their exposure in the consumer credit market. They do so by closing inactive accounts, cutting credit limits, etc.

I have a Visa with a $50k credit limit that I've never had more than $5k on at any time. They recently cut my limit down to $20k by sending me a letter informing me of the change.

[racer72]

Banks issue credit cards for one reason, it makes them money. You were not making them any money, in fact, folks that keep credit card balances at 0 actually cost banks money. I would suggest obtaining a credit card from a financial institution that is not in business of making money off its customers, a credit union would be a good example.

[nailtech]

quote:
My son was taken to the emergency room by his mother and she listed me as the guarantor. Now I am getting a ~$1000 bill for this service
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call and give the hospital that cc number, charge that bill and solve two of your problems...