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I was just checking my credit report and it indicated that an account I thought was still open was now closed. When I called BOA to see if senility had set in early and I had closed the account and forgotten about it, I was told that, no, they had closed it due to inactivity. When I asked if I should had been notified, the rep said that it was not their procedure to notify someone that their account had been closed and there was no reason to notify me! Am I missing something or is this now standard procedure in the industry?

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Or maybe it was the 5% APY CDs they were throwing around like candy? Thanks for that, by the way.

worth (Apr. 27, 2010 @ 9:35a) |

I had cards inactive for several years and no problem. OTOH, I got a GE card cancelled because of inactivity. I just sta... (more)

mungbai (Apr. 27, 2010 @ 10:38a) |

BOA sucks donkey balls. Infact, all of them do.

webmerch11 (Apr. 27, 2010 @ 1:25p) |

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I had WaMu close a checking account on me because I did a transfer and left the account with a zero balance.

They never told me... so I transfered money back to that account and BofA shut down my account for suspected fraud because I was transferring money to a closed account.

I called WaMu and they were exceedingly rude to me.

I put a curse on them... that proved to be wildly successful.

skibum43 said: When I asked if I should had been notified, the rep told that it was not their procedure to notify someone that their account had been closed and there was no reason to notify me! Am I missing something or is this now standard procedure in the industry? Is this commonplace? It seems very irregular for a credit issuer to close an account without notifying the accountholder, but in all likelihood there is no legal requirement for such notification.

Bank of America closed my credit card with no notice too, inactivity (I called them up after noticing my card was no longer listed in the accounts homepage below my savings account). I thought they would send something in the mail, at least, but oh well.

It's a very common procedure. Banks, store cards, finance company accounts all do it, especially if it's a closure due to inactivity.

These days, more issuers are closing inactive accounts (and more quickly than in the past), so if it's desirable to maintain a particular card, it's necessary to make active use of it - my minimum guideline is every 2-4 months for credit cards, every 6 months for store cards. Many banks (especially BOA and Citi) are reducing their commitment/exposure to improve their balance sheet. Closing inactive accounts and reducing credit limits are two of the easiest methods to do this ...

I have no problem with them closing the account due to inactivity. I just think they should at least notify you that the account is closed, if not provide some advance warning that they plan on closing it if you don't use it.

Same deal, 4 app-o-rama cards were closed, and since I am not retarded enough to bank with them, the whole account is closed. To the tune of "everybody else does it", most of the issues would send you a notice, HSBC's was apologetic "we believe it's in yours and ours best interest if we close this account", with promise to resurrect the account if I call within a week and start spending.

not a CC, but my savings bank at a local bank had to get an override in order for me to make a deposit. When I questioned it, they said because there had been no activity for at least 6 months. Thats a much shorter timeframe than before.

skibum43 said: I have no problem with them closing the account due to inactivity. I just think they should at least notify you that the account is closed, if not provide some advance warning that they plan on closing it if you don't use it.
I agree with you 100%. However, it seems that banks like to do as little communicating as possible when it comes to making customers aware of account changes, unless legally compelled. It's likely that the original terms and conditions state that the bank can close the account at any time, for any reason, without warning, and the bank considers that blanket, one-time notice to be sufficient. HSBC may give warnings, but they are an exception. Ironically, they are one of the quickest to close accounts for inactivity.

The bottom line is that customers need to be much more pro-active these days about monitoring and protecting their credit lines. Many banks will close an account, then when the customer finds out and calls to request the account be re-opened, they are told the issuer can't do that, but the customer is welcome to open a new account (complete with score dings for inquiry and new account). And they may be declined, or the new card's CL may be lower than the closed account. That doesn't make sense to most people, but that's the way it is. In general, banks don't respond the way you expect a business who values its customers to respond. It seems easier to me to educate myself to avoid their traps and paranoid behavior, than to assume they will act rationally and be forced to waste a lot of my time later when they don't.

Another alternative is to transition to credit unions, who generally act more considerate and less twitchy than the major banks ...

I had several credit card accounts closed for inactivity, including a couple by BoA, and I was notified with a letter every time, albeit after the fact. Actually some store cards did get closed without notice, but never any of the major ones.

Chase did this to me. They wouldn't reopen my account and said I needed to open a new one. I told them if they wanted my business, that they need to reopen my old account (they didn't comply). This was for a checking account that was at $0 for 15 days it seems. They could have easily warned me but didn't.

Chase was the first a couple of years ago to close one of my accounts without notice. I had to learn the hard way at the checkout. The last time I looked over my credit report, a few have been closed since then by different issuers with no notice. As a courtesy, I think they should only be able to close it when the card expires or otherwise send a notice.

The banks don't need us anyway. They just get the government to hand over the taxpayer's money.

so if this happens, I assume there is no way to convince them to reopen the account?

Deal with it.

Remember this the next time you have any moral remorse about opening a credit card simply for its benefits.

ctujackbauer said: Bank of America closed my credit card with no notice too, inactivity (I called them up after noticing my card was no longer listed in the accounts homepage below my savings account). I thought they would send something in the mail, at least, but oh well.

Same experience. I stopped using their card a couple years ago (which came over from another bank when they were acquired). Eventually I stopped seeing updates in Yodlee but didn't give it any thought.

One warning though was that I recently discovered some BS delinquincy regarding it on my credit report. I was able to get it removed purely because the information was inaccurate (dates didn't line up) but keep an eye out just in case.

Oh, COME ON! The notice for your card cancellation had been on display in your local BofA planning department in Alpha Centauri for fifty of your Earth days, so you've had plenty of time to lodge any formal complains and it's far too late to start making a fuss about it now.

I can't believe that no one has mentioned this: sue them (paging codename47)

Check out: Gray v. American Express Co., 743 F.2d 10 (D.C. Cir. 1984). The plaintiff, Oscar Gray, is a very well known law professor.

That said, you likely won't win, and even if you did, you likely don't have any damages.

yanks0114 said: I can't believe that no one has mentioned this: sue them (paging codename47)

Check out: Gray v. American Express Co., 743 F.2d 10 (D.C. Cir. 1984). The plaintiff, Oscar Gray, is a very well known law professor.

That said, you likely won't win, and even if you did, you likely don't have any damages.
It's likely that in the years since that 1984 court decision in favor of the cardholder, the credit card industry has lobbied Congress to legislatively remove any liability for notifying the cardholder of account cancellation.

Yep, they closed one of my CCs too. No notice whatsoever. Sucks, as it was one of my larger CLs too.

It serves all of you right for dealing with this sleazy company! There is no customer service with them and they have consistently been voted the worst or one of the worst companies in America by consumerist.com. They will screw the customer over any chance they get! They bought up my mortgage and I frequentluy ask them to sell it to someone else because I don't want to give them my business!

Standard procedure to close inactive accounts and it has been for quite a few years. They used to try to cajole customers to use their cards, but with all the defaults, it is easier to eleminate accounts that yield no profit. I think in the fine print there is a disclaimer that they can terminate the relationship at any time and they can call the amount in full upon that particular notification. The same thing applies if you cancel your account with a balance, payment is due in full and this has been true ever since I can remember.

It is a good thing that you checked your credit report and reminded people to do the same at least once a year to dispute discrepancies.

PEACE

PEACE

yanks0114 said: That said, you likely won't win, and even if you did, you likely don't have any damages.

They may offer at least a settlement to keep it silent right?

Banks treat me awesome after I stopped paying them back! Lowered APR, waived all fees,lowered minimum payment..etc.

Crazytree said: I had WaMu close a checking account on me because I did a transfer and left the account with a zero balance.

They never told me... so I transfered money back to that account and BofA shut down my account for suspected fraud because I was transferring money to a closed account.

I called WaMu and they were exceedingly rude to me.

I put a curse on them... that proved to be wildly successful.


Dear God:

- in 2008 you took away from me my favorite savings and loan (WaMu), my favorite broker-dealer (LEH), my favorite GSE (two of them, actually, and not really, but almost), my favorite sub-price lender (New Century), my favorite Alt-A lender (Thornburgh) - which by the way helped you take away from my my favorite old buys club (BSC).

I only wish that in 2010 or 2011 you take away from me my favorite mega-center bank (fill in ticker), my favorite diversified credit cards / insurance provider (fill in ticker), and my favorite health insurer.

Signed,

- pissed off customer

BofA sends me weekly mailings of transfer checks and other gimmicks to entice me into using an inactive card. Of course when I tried to use it recently to take advantage of a bonus points offer it was declined because BofA found it suspicious that I would use the card.

Welcome to 2008.

alot of department stores do it too. take your cards charge what ever you are there wanting go home make payment on line or send in payment on all credit cards at least once a year. i have charged something on stores and then went to customer service and paid for it. bank of america do the same thing and any of others that have a bank

Does it make a difference on your credit score/history whether you close a CC account at your request vs when the bank does it for you?

it happened to me. don't care for BOA credit card. they dont offer anything...

Crazytree said: I had WaMu close a checking account on me because I did a transfer and left the account with a zero balance.

They never told me... so I transfered money back to that account and BofA shut down my account for suspected fraud because I was transferring money to a closed account.

I called WaMu and they were exceedingly rude to me.

I put a curse on them... that proved to be wildly successful.


I lost my job at WaMu because of you. . Thanks for that

how long did you guys have your cards inactive for?

scrapycoco said: Banks treat me awesome after I stopped paying them back! Lowered APR, waived all fees,lowered minimum payment..etc.

What rate did you get? And did you deal with BOA?

mabrikh said: Crazytree said: I had WaMu close a checking account on me because I did a transfer and left the account with a zero balance.

They never told me... so I transfered money back to that account and BofA shut down my account for suspected fraud because I was transferring money to a closed account.

I called WaMu and they were exceedingly rude to me.

I put a curse on them... that proved to be wildly successful.


I lost my job at WaMu because of you. . Thanks for that


Or maybe it was the 5% APY CDs they were throwing around like candy? Thanks for that, by the way.

I had cards inactive for several years and no problem. OTOH, I got a GE card cancelled because of inactivity. I just started using a couple unused cards recently and plan on cycling through all my cards and making a few purchases with each to avoid this problem. That said: I am surprised to hear that BOA canceled your card. I find with BOA that they are like a neglected girlfriend: the less attention they get from you, the more friendly they become. Balance transfer checks, etc. (Albeit mostly with terrible terms: I love the one that is 2.99% for 6 months with a 4% fee. Um, that's better than your standard 12% rate by what? A fraction of a percent? No thanks, brah.)

Also, re: balance transfers, BOA will negotiate the fees. I've called up and negotiated down a fee before. YMMV.

BOA sucks donkey balls. Infact, all of them do.



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