Yesterday, I received a letter from Bank of America. It tells me that through their proactive account investigation, they decide to close a credit account which is inactive for a long time and also because I have a delinquency history with another creditor. And they would not be able to provide the details about the reasons. As far as I know from my credit report, I have a charge-off record from American Express with about 222 dollors just reported last month. And I am in the process of disputation with credit bureau and American Express, because it is all American Express fault. And I don't have any late payment with any other creditors I am wondering if BOA can do such a thing, which will definitely make an adverse affect on my credit again.
Sure they can. It's called the "universal default" - which they use to either up your interest rate to predatory/loanshark level interest rates, or just cancel you altogether (since it was inactive). Congress tried to do something about this, but Bush vetoed these legislations.
It doesn't seem fair to me, either. But I can also see the creditor's point of view. ALL of the big banks are in trouble because of the number of loans that are defaulting. So if one of their borrowers seems to be having problems paying back loans, it only makes sense that they would move to protect themselves. In your case, since the account was inactive, they had nothing at all to lose by closing it. And they avoided the possibility that you would run it up and then default.
Why not write a sort of "goodwill" letter to the executive offices. Tell them what the dispute is with AMEX and ask if they'll reinstate your account. Use it occasionally to keep it active, but make sure you keep it paid.
Goodwill letters, especially to BOA, Citi, and Chase are worthless. These crooked predatory loansharks are getting hit big time in these economic times, and are bracing themselves for when bankruptcy filings will go through the roof again.
Something like this happened to a friend last week. She has a credit line of 4000 with Sears, she has never been late and has had the card for about 15 years. She bought a big tv about (2K) last fall and had a balance left on the card of a little under 300 dollars. So she had been paying a lot more than minimum payment and was never late as I said. Well she got a later from CITI/SEARS saying effectively immediately her credit line has been reduced to $300. They said because of delinquent or derogatory accounts they took this action. Funny thing is she had much worse credit a few years ago and since all fine and current. Anything to be done so she can get that credit line back up there? If not should she close the darn account,and say @#$%^&*( !!!!?? Woofer
Has she pulled her reports to see what is reporting? She may have something on her reports that triggered it. If so, she should get it corrected and then ask for reconsideration because the action was based on erroneous information.
OKay I just did this for her on line. There is a COLLECTION ACCOUNT that has just been put on there from PALISADES. Seems they now have an old CO account of Chase's. They are showing a BIG BALANCE like 19K and an OPEN account and 120 days late. Oh and what I am confused about is DOFD is in 03 and now Dste of MAJOR DELINQUENCY is July 2008! So is this reaging ? How would one dispute all of this???UGH! I have been bothered with Palisades as well, and have sent in a dispute. No change thus far. Now because this has harmed her credit is there something that can be done about Palisades? She has not gotten any notification whatsoever from them. Woofer
Just an FYI, there is a bill that is close to being signed that should virtually eliminate universal default. It's been in the Senate along with about a dozen other bill for about 6 months.
If it's in congress;it's linked to the promise to lower gas prices,along with the promise to help those folks out.Who in the hell is those folks.like were bottom feeders and deadbeats.
