citibank closed all my cards at the end of last week... Their reasoning was I had too many inquires (I have 10 hard pulls on the Equifax report they pulled)... I have a credit score of around 800 on all 3 bureaus... They refused to open the accounts and were quite rude for no reason... When I asked for a supervisor, I was just transfered to another even more rude representative (not a supervisor). I will try back in a week or so and see if I have more luck, but that department has to be more accountable for their actions... I mean, I have never had a single late payment, my net worth is in the Ms, my annual income is well into 6 figures, and all balances are paid in full each month... I only have like a dozen credit cards (3 of them citi)... And the worst thing is, my oldest citi card was from 1994! So I've been a loyal customer for almost 15 years and they treated me like dirt and cut me off with no notice at all... I only found out when I logged into accountonline and it said my account had been closed...

Citibank really needs to put that department in check... It looks like some letters will need to be written to the office of the chairman and the SVP of that divison... If anyone can point me to that information, that would be great...

Also, I have balances on a few of the cards they closed... Should I pay it off before the statement cycle date? Does it make any difference?

I'm also wondering if I'll get my AA miles for the purchases that I made this month on my citi aadvantage card they shut down...

Citibank just closed my Mastercard, 19k limit. Been a customer for years. Called and they would not re-open. Cited non-use and too many inquires (no new lines of credit -- just opened some deposit accounts).

I'm not sure about the number of inquiries I had. Couldn't be any more than 4, maybe 5 tops in the last 6 months.
I've called and spoke to 2 different people. Still don't really understand why they did it ... I mean rather what they have to gain by doing this.

DAWG said:I'm not sure about the number of inquiries I had. Couldn't be any more than 4, maybe 5 tops in the last 6 months...The letter from them should tell you how you can get a free credit report (because their decision was partly based on it). Then you'll know how many inquiries.

Do you have any other Citi cards that they didn't close, or was that the only one?

DAWG said:Not to sound naive, but how do they have less to lose? Are you referring to risk? I'm 40 years old, never had a late payment in my life, and don't even need or use the card. How big of a risk are they assuming by me having their card? Maybe they don't want me because I'm not profitable (?)...Maybe. Maintaining an account that has no activity has costs associated with it. Just curious -- when did you use the card last time?

Don't take it personally. The logic behind these closures probably comes from someone's behind. It doesn't always make sense. Were the CSRs from the credit management department? Did you try asking for a supervisor there? Did you explain your stable financial situation and perhaps the inquiries? I think if you had no debt or no mortgage it could work (it did for me, but that may not have been the reason). If none of that works and you really want the account reopened, you could try writing either to that dept or the office of the president...

scripta said:DAWG said:Not to sound naive, but how do they have less to lose? Are you referring to risk? I'm 40 years old, never had a late payment in my life, and don't even need or use the card. How big of a risk are they assuming by me having their card? Maybe they don't want me because I'm not profitable (?)...Maybe. Maintaining an account that has no activity has costs associated with it. Just curious -- when did you use the card last time?

Don't take it personally. The logic behind these closures probably comes from someone's behind. It doesn't always make sense. Were the CSRs from the credit management department? Did you try asking for a supervisor there? Did you explain your stable financial situation and perhaps the inquiries? I think if you had no debt or no mortgage it could work (it did for me, but that may not have been the reason). If none of that works and you really want the account reopened, you could try writing either to that dept or the office of the president...

Any idea how to contact the office of the president?

My first AA action.AMEX reduced two personal cards to 500.00. Cards were used for purchases under 50.00 dollars a month. The reason that stated was I had not used the card over 50 a month, I pay in full, and I had not made a major purchase in over six months. In other words I was unprofitable. This is nothing new, but what has changed is the economy. It is a possibility that using a card once every six months is not good enough.My biz cards were untouched. Datapoints.
1. I have not done a AOR in eight months or more.
2. Two inquires on Equifax, 0 inquires on TU, 14 on Experian. (No B*)
3. My total debt over all cards is under 1,000.00!
4. Six figure household Income.
5. No lates with AMEX or derog on CRA.
6. My oldest credit card is 18 years old.

Donedealzz, how long have you been an Am.Ex customer? Truly amazing they would slice you given the info you posted. Makes me want to go blow out an Am.Ex BT - FR be damned.

All I can say as I read these threads is that people are being way too cavalier.
There are experienced posters on this board-- (DaveHanson one of the wisest) -- who have cautioned that the environment has changed and is changing daily.

I have spent a depressing morning reviewing the new Fannie Mae lending guidelines on Jumbo conformings and it's deja vu 1990 all over again.

A few highlights:

No Automated Underwriting System approvals.
*
For principal residences, fixed-rate loans are limited to 90% LTV/CLTV for a purchase, and 75% LTV/95% CLTV for a no-cash-out refi. ARMs are limited to 80%/80% on a purchase and 75%/90% on a no-cash-out refi. CASH OUT REFIS ARE NOT ALLOWED.
*
For second homes and investment properties, the maximum LTV/CLTV is 60% in all cases for purchases and no-cash-out refis.
*
Minimum FICO of 700 for LTVs greater than 80%.
*
One-unit properties only.
*
On a primary residence, existing subordinate liens must be resubordinated. The new loan cannot "cash out" an existing subordinate lien
*
45% maximum DTI, with ARMs qualified at fully-amortizing fully-indexed rate.
*
Full doc only.
*
A full appraisal with interior inspection is required on all loans; if the property value is more than $1 million, a field review appraisal is also required.

It happens that I believe most of these are sensible restrictions. The problem is, that like everything else, the pendulum always swings too far the other way.

And IMO these types of tightened guidelines are not just going to be applied to mortgages. Credit cards will not be immune.
You can scoff and call me clueless. I recognize that a person urging caution on FW today is vox clamantis in deserto.
But I believe that this credit scenario is only just now unfolding.

We shouldn't over-react but we shouldn't ignore it either.

In other words: "Let's be careful out there"

Also - what happens when an account with a balance is closed? Do you have to repay it right away? Or do the prior terms (re. APR, minimum payments, etc.) still apply?