List Credit card issuers that closed accounts / reduced credit lines / taken other adverse action due to usage patterns

EphU437 said:
Now, reading these posts, I am concerned. If our old citicard gets canceled, will it really hurt our credit rating? Can they cancel a card on which you have an outstanding balance?

2 of the cards we applied for were a promotional spend $750 in 4 months and get 25k bonus miles. Might they cancel the card before we hit that point?

If the old citicard gets canceled, I don't think it will hurt your credit rating too much unless you have no other "old" accounts... It didn't hurt my score much...

Yes, they can cancel the card at anytime, they have no obligation to wait until you spend $750

Technique said: 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...

Me too. Citibank closed all three of my accounts. I consolidated 5 accounts into 3 in late Feb. Yesterday, I received a letter informing me of the closures. I have $13K BT in process and the payment was stopped. I was charged a returned fee.

What is happening? Make no sense at all. I am going to call Citibank and will keep you guys posted.

alextan

Technique said: BTW, I just recently got them to reopen all of my accounts. I had to seriously escalate things.

Tell us more. What did you have to do?

lhendricks92 said: Technique said: BTW, I just recently got them to reopen all of my accounts. I had to seriously escalate things.

Tell us more. What did you have to do?

About 10 hours and 50 phone calls, tons of research, tons of "waiting" for supervisors to "review" my status. Weeks going by with no responses... Asking for managers of managers... Eventually I found a manager who realized that my situation was not a risk and they reopened all my accounts immediately... I don't have any specific names to give you, all I can say is that if you don't fit the reasoning they are giving you (high balances, too many inquiries) then tell them they are in error and be prepared for a fight...

alextan said: swishyx said: alextan - did you also have a high inquiry count?

Yes, I did. I just completed a 20-card AOR in Feb.


alextan
How many on EQ?

Technique said:
That did it... Banks are paranoid these days... Do an AOR and be prepared to suffer the "wrath" of hurting banks like citi...
I have 2 EQ inquiries and am considering tacking on another 6 (including 4 citi apps)... I had 8 on there before, no adverse action. Scratching my head over here on whether the gaggle of new activity - apps plus maybe CLR - might "wake them up."

Fortunately I haven't experienced any adverse action since I stopped doing application sprees.

I spread my applications out. I never saw any compelling evidence that grouping them all together had any advantage anyway.

stook2001 said: Even if I cant get my accounts reopened, I intend to get those TY points.
Somehow, they let me redeem TY points after my accounts were closed. I did it within a month or so

74ak said: Technique said:
About 10 hours and 50 phone calls, tons of research, tons of "waiting" for supervisors to "review" my status. Weeks going by with no responses... Asking for managers of managers... Eventually I found a manager who realized that my situation was not a risk and they reopened all my accounts immediately... I don't have any specific names to give you, all I can say is that if you don't fit the reasoning they are giving you (high balances, too many inquiries) then tell them they are in error and be prepared for a fight...
Good for you.

A/A from citi as well: I had only 7 inquiries on EQ (in the past 12 months) and $0 of debt reported, scores in 780s and only 2 brand new accounts(in 4 years); per regular CSR my account was marked "Credit Abuse", later she transfered me to Credit "Mishandling" Dept. where thay suggested to wait for the letter...""Too many inqs on EQ"...though the real reason was, my guess, BT laundering through citi cards
so I b*ed them off and called back, they repulled my credit after I spoked to 2 managers but no luck - all accounts(both business and personal) were closed, which confirms that they monitor activity and use "Too many inqs on EQ" as an excuse

Well, I guess I will have to get few more new citi cards with TY bonuses

Same thing happened to me. Went from 0 inqs to 9 inqs and they closed all my accounts (I only had 2) due to "Credit Abuse". This was my transunion report. I called and they also said wait for the letter. I was approved for the card at the end of March and they closed it 10 days later, before I even activated the card. I was still able to activate it. Imagine my surprise when I tried to use the card and it was declined. So embarrassing.

74ak said: swishyx said: 74ak said: A/A from citi as well: I had only 7 inquiries on EQ (in the past 12 months) and $0 of debt reported, scores in 780s and only 2 brand new accounts(in 4 years); per regular CSR my account was marked "Credit Abuse", later she transfered me to Credit "Mishandling" Dept. where thay suggested to wait for the letter...""Too many inqs on EQ"...though the real reason was, my guess, BT laundering through citi cards
so I b*ed them off and called back, they repulled my credit after I spoked to 2 managers but no luck - all accounts(both business and personal) were closed, which confirms that they monitor activity and use "Too many inqs on EQ" as an excuse

Well, I guess I will have to get few more new citi cards with TY bonuses

How many new accounts in the last 6 months? 12 months? When was your last round of apps?

I did mini AOR (mostly business) in December-January, on my credit report I had only 2 NEW personal accounts (really 3, but Am.ex messed up something and account "was opened" in 2004) and 8-10 business.
As far as citi, I had 1 new for biz and 1 new personal, I also had 4.5yo KeyBank(issued by Citi).
I was begging them to just reopen last one with a toy limit...
few more points to consider, I reallocated from key to new personal citi, and then BTed; made numerouse calls to reallocate to biz...so may be they monitor this activity as well
Hmmm. Interesting. I wonder if they'll open new accounts for someone who they took inquiry-driven adverse action against, or if you're blacklisted? Anyone willing to throw an app in to find out?

I hope folks will keep providing data points between this and the Citi adverse action thread that popped up.

This is a very disturbing trend... I think everyone affected should be writing to the office of the CEO to let them know that the "credit mgmt department" is basically out of control and unchecked... They are killing off customers with excellent credit for no real reason, simply because we did a BT that they offered? Something is wrong with that picture... They should cut off the BT offers, not all the accounts!

Technique said: This is a very disturbing trend... I think everyone affected should be writing to the office of the CEO to let them know that the "credit mgmt department" is basically out of control and unchecked...They should cut off the BT offers, not all the accounts!

I start:
"Dear God,
Please forgive me as I sinned: I recently took advantage of one BT targeted offer.
Please reopen my accounts as I will dwell on the sin and let the sin define me."

My Citi A/A so farposted in the Severe Adverse Action from Citibank thread and in my own AOR thread
Sorry to hear this but I'm glad to hear all these data points on this situation and that it didn't just happen to me. Hopefully we can learn from others' handling of this and benefit from it.
I had reported on my experience nearly 2 weeks ago here in my thread.
Here's an update (also posted in my thread with some other updates too)) on the letter I got, steps I've taken so far(removing inqs), and plan I have of dealing with it as well as a summary of the accounts that were closed:
Ok, I Finally got my letter from Citi(Early Warning Services is the name of the dept on the return address label of the letter) 2 days ago, and the reason stated for the closing of my 4 accounts was "specifically, too maopened accounts were on your credit bureau report" , even though I haven't opened any new personal accounts on my credit report since December, and those were all visible when they approved my Citi Business PremierPass card in Mid March. They also stated that for them to reconsider the closing of the accounts I need to give them a new copy of my Equifax credit report within 30 days of the sending of the letter(April 8).
My plan for A/A reconsideration:
So as of yesterday I have gotten all of the 7 Hard Inqs off my EQ report so there are 0 Inqs on there and the only negative is that since they last pulled my report, my reported debt has increased by ~18,000 as my AMEX IN:LA Balance reported 2 months after I initiated the BT. I don't plan on paying that debt off right now. I realize they told me I had too many accounts and not too many inquiries (as alot of other people are reporting being the cause of their A/A here and here, but this puts me in the best light possible(aside from paying off that AMEX BT), so I'll hope this be enought to convince them to reopen the accounts and hopefully not lessen the lines. I plan on calling Citi to see if they can just pull another EQ soft inq or if I have to physically send them my updated CR.
As a summary here's the accounts they closed and the stats on them:
Citi mTVU card............$2,000 CL....$580 reported balance....~2 years old
Citi Professional.........$1,000 Cl....$0 reported balance(though has -$23950 from other BTs currently)....4 months old
Citi Business Card........$29,100 CL...$26,700 balance(at 0% thru November so I'll keep paying the minimum on it)...4 months old
Citi Business PremierPass.$1,000 CL....$1 reported balance(just 1st purchase though I haven't gotten word on the TYP account for this yet...1 month old

peteypablo said: This is why I have tried not to become dpendent on 0% credit cards.

No one should ever become dependent on 0% credit cards.

Advanta (business) reduced limit to ~ $500 above my balance (0% BT) and increased purchase APR from 7.99% to 26.31%. Probably due to a semi-annual review (I opened 6 months ago). Reasons: 1) time since most recent acct opening is too short, 2) too many inquires in the last 12 months (pulled Experian). I'm pretty upset about the crazy APR bump, but don't care enough to call.

icculus631 said: Just a question the people who had there accounts closed. where they accounts that they owed money on. I am just wondering if you already have an outstanding debt with 11 months left of the promo are they canceling them and then forcing you to pay the money back immediately.They can't force you to pay back immediately -- you can pay according to your latest card agreement.

Barclays (Juniper National Parks) closed my only card with them after 1 week siting "Too many new accounts in the last 6 months" and "Growth rate of debt is too high". This was right on the heels of an AOR. Be careful with those guys. Looks like they do a second soft pull after issuing a new card to make sure you didn't pull an AOR. I don't think I'll bother with them again. It's always more hassle with Barclays.

Washington Mutual closed my card late last month due to the following:
"Proportion of balances to credit limits"
"Amount owed on revolving accounts is too high"

Their own measurement shows $36,000 utilized, for a total overall utilization of 28%.

3 cards utilized to approximately 69%, one to 45%, one daily spender which shows 2/3 of high balance, the others 0

All paid in full

3 inquiries transunion (which they pulled)

I performed Mini AOR in Jan 08. After AOR I have total 14 cards (4 cards for about 7-8 yrs + 10 new cards)
My total credit line after AOR is about 160K. I am using 100K out of it.

I recently received a letter from Chase on 2 of my account saying that after careful consideration, they have decreased my credit line for:

- Balance owed on revolving accounts too high
- Too little available credit on accounts

Is there any thing I can do?

One of the chase card is with me for couple of yrs with credit line of 6.5K. During AOR I got chase card with credit line of 21K.

I have not been using chase card with 6.5K limit after I got new chase card as it has 1% Cash Back and 0% APR on all purchases.

21K got reduced to 13.5K
6.5K got reduced to 2.5K

Anything I can do? I have been following and reading AOR threads. I am surprised how this happen to me?

Any suggestions?

careyo said: I just got capital one line of credit reduced from 35k line to 5k, due to inactivity. I don't believe for a second that "inactivity" is the real reason. More likely its the multiple inquiries combined with that amazingly large (for cap1) line size.

Would appreciate details on how you obtained a single $35K line. I have over $150K with them, but no single line exceeds $30K, and I haven't heard of one doing so before your post. TIA.