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Can CC Co. just close my account??

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B

bd38

Guest
What is the name of your state? Oregon (but card was issued in GA)

We've had major problems with Direct Merchants Bank (I posted to this forum on 8/15/02 the full story...) Now, it turns out the Direct Merchants has closed our account, and they say there is nothing we can do about it!!

What are the federal laws/statutes that cover credit cards and consumers? They closed our account because they failed to cancel our auto-debit agreement, even though they received and posted our mailed in payment four days prior to closing our account!! Under normal circumstances we'd just tell them to shove it and get another card, but we recently lost a court case (on appeal...) and now have a judgement against us, so getting another card will not be easy! We have had this card for over 4 years, and NEVER had a single late payment, over limit, etc. Surely there must be something in the law that prevents creditors from arbitrarily and capriciously closing a credit account!! (BTW, they say it was closed for non-payment, yet they confirm that our mailed in payment was received prior to their closing the account. Also, in the auto-debit agreement we signed, AND in the cardmember's agreement, it states that "in the event of a returned payment, your account may be suspended until such time that payment is received.")

What can we do????

Thanks!

BD
 


Ladynred

Senior Member
I'm afraid there isn't much at all you can do. There aren't any laws that prevent a creditor from closing an account whenever they want to. Even though they made a complete mess of your account, they can still do it at their own discretion. Sucks, but that's the way this screwed-up system works.. and its NOT in the consumers favor.:mad:
 

bigun

Senior Member
If DMG hadn't closed your acount when they did, they sure would close it once that judgment appears on your credit file. Once cc companies see adverse information on a credit report they shut you down in a hurry.
 

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