My Card Cancelled -Account Was Current

[Clipper965]

FLORIDA.

My card issuer out of the blue sent me a letter stating my Credit Card Account was closed and closed to further charges. They also informed me my limit was reduced and am now over limit. My account was current. There have been in the last few years a couple of late payments. The balance was never high, $1500 or so. I have no other current financial problems. I could not get through to speak to someone so I emailed and they sent me:


Dear Valued Customer,

Thank you for the opportunity to serve you. This email is in response to your recent inquiry.


Recently, we sent correspondence to you stating that, unfortunately, your XXXXX Visa credit card program has been discontinued and accordingly your account is being closed to new transactions. Your XXXXX Visa account will be closed to new transactions effective November 26th, 2008. Further, on the date that we sent our correspondence, your credit limit was set at your current credit limit or an amount that is $100 over your outstanding account balance, including any unbilled amounts, whichever is lower.

We appreciate and value your business. Please let us know if you have any further questions regarding your account.

Thank you for contacting Customer Service.





AND







Dear Valued Customer,

Thank you for the opportunity to serve you. This email is in response to your
recent inquiry.

We will report your account as closed to the credit bureaus. We cannot predict
how the closure of your account will impact your credit bureau report but do not
consider this status a negative report. However, as long as you continue to make
your minimum payment each month by the due date, your account will be reported
as current.

We will forward your email to the appropriate department for response.

We appreciate and value your business. Please let us know if you have any
further questions regarding your account.

Thank you for contacting Customer Service.











I had to declare Chapter 7 in 2002 because of Medical bills and have worked hard to maintain a good credit rating. This card was one I was using to help re-establish credit. I am worried how this will effect my credit rating. If it does. Can I go after them for legally slandering me. No doubt this has happened to others, maybe a CLASS ACTION?What is the name of your state (only U.S. law)?

[LeeHarveyBlotto]

There's no slander. They made a business decision to stop doing business with you. You're allowed to do that as are they.

[Zigner]

Originally Posted by Clipper965

FLORIDA.

My card issuer out of the blue sent me a letter stating my Credit Card Account was closed and closed to further charges. They also informed me my limit was reduced and am now over limit.

...your credit limit was set at your current credit limit or an amount that is $100 over your outstanding account balance, including any unbilled amounts, whichever is lower.

Your account was set up so that you would NOT be over your limit based on this action. If you are over limit, it's NOT because of their action.

[Some Random Guy]

Go out and apply for a new credit card. For the new one, make a charge on it as soon as you get it, pay it off in full at the end of the month and then put the card in a safe place and do not use it for a year. Builds your credit, avoids monthly fees and late payments.

The old account being closed will affect your credit since it was an established trade line with a multi year history. However, you were doinng your credit no favors by being late even once.

[>Charlotte<]

Originally Posted by Some Random Guy

Go out and apply for a new credit card. For the new one, make a charge on it as soon as you get it, pay it off in full at the end of the month and then put the card in a safe place and do not use it for a year. Builds your credit, avoids monthly fees and late payments.

Good idea, but if you stop using it you might want to check the status every couple of months. We had a card we rarely used and when we tried to use it one day it was declined. It had been closed after six months of no activity. No notice, no questions, nothing--they just closed the account and continued to send us monthly statements with a zero balance. We did get it re-activated with one phone call, but that could have been a real problem under other cirumstances.

[Some Random Guy]

We had a card we rarely used and when we tried to use it one day it was declined. It had been closed after six months of no activity. No notice, no questions, nothing--

Your mileage may vary. I had an AT&T visa card that was unused for 3 years before they sent me a letter asking me to use the card again.

[tryingtoplease]

It really wasn't anything personal. I received the same letter from Aspire. It was simply a business decision on their part during this crappy economic period. Never, ever, ever late or over balance. The only thing that ticked me off is that I've had the card since 1999 with a high available balance & I'm sure it will affect my FICO score but what can you do? Don't sweat the small stuff. Things are going to get worse before they get better. Now go get another card as others have advised if you wish but don't spend time worrying over this. Just my 2 cents.

[TimStudiesLaw]

Originally Posted by Clipper965

...unfortunately, your XXXXX Visa credit card program has been discontinued and accordingly your account is being closed to new transactions.

They didn't single you out, they discontinued the entire series of cards in the program. (Program = mileage/reward points, cash back, etc.)

Citi did this to me a while back. I contacted them and they issued me a new card under a different program.

[seniorjudge]

Originally Posted by Clipper965

...

My card issuer out of the blue sent me a letter stating my Credit Card Account was closed and closed to further charges.

...

Watch the news.

This is quite common these days.

[HelpinMN]

Originally Posted by Some Random Guy

Go out and apply for a new credit card. For the new one, make a charge on it as soon as you get it, pay it off in full at the end of the month and then put the card in a safe place and do not use it for a year. Builds your credit, avoids monthly fees and late payments.

The old account being closed will affect your credit since it was an established trade line with a multi year history. However, you were doinng your credit no favors by being late even once.

This will not build credit, if the trade line is not active (payment owed and paid each month) it will not help your credit. The better way is to buy something minor each month (a pack of gum a can of coke) and then pay it off. If you dont owe and make a payment you don't get that little "1" on your report which means it did nothing for you that month.

[emach1]

You can add a comment to your credit report such as you were never late and the company, not you, closed the account. You just have to do it for every credit reporting bureau. I believe it is free and it follows the process of disputing an item.

[Zigner]

Originally Posted by emach1

You can add a comment to your credit report such as you were never late and the company, not you, closed the account. You just have to do it for every credit reporting bureau. I believe it is free and it follows the process of disputing an item.

Why would she need to do that? ALL of that information is already on the report.

[emach1]

Originally Posted by Zigner

Why would she need to do that? ALL of that information is already on the report.

A closed account doesn't look good on credit reports, thats why.

[debtcollector`]

Originally Posted by emach1

A closed account doesn't look good on credit reports, thats why.

Your comment is what would look bad on the credit report -- not an account in good standing that was closed.

emach1 -- I've have been trying to figure out if you are intentionally giving people bad advice because you want to hurt a stranger or if it is because you truly are as ignorant as it seems. If I give you the benefit of the doubt and suggest you go learn about these subject and then post, you will most likely come back with some kind of ad hominem attack. So please, stow the attacks on senior members and try to learn something about these subjects, then feel free to join us.

DC

[enjay]

I recently closed a 19 year old account because the change in terms (due to the economy) made it worthless to me. I expected my FICO to take a hit but I actually gained points. Each person's credit history is different and actions taken will affect each one of us slightly differently.

Generally, especially if you have very few accounts, closing an account hurts your fico a bit, but no where near as bad as late payments do.

Credit card issuers are closing accounts and decreasing credit limits like mad these days. It's hard to accept, but you can't take it personally. It's a sign of the times.