Are there any federal / state regulations on a creditor closing an account? Do they have to give 30 days notice? This is in regards to a credit card account.
It was DH's card. They said because payment was late. He had moved and so he didn't get one month's statement. He gave them his new address and received a letter that they were closing account before he had a chance to pay. So, now his report says "Paid after charge off." I read the agreement and it said that if the account is closed by them, they have to give 30 days notice except where permitted by law. What is the "permitted by law" exception?
Was the account charged off? As in written off to profit and loss? Or was it 30 days late and should be reported as "closed by credit grantor"?
jlynn - According to Providian (they verified with the CRAs) the account was charged off. The account had a balance of $1,000 when it was 45 days late. Providian then closed the account because it was late. DH paid the balance immediately. It is showing on his report as a "Paid after chargeoff." This just doesn't seem legal to me. There must be some regulation somewhere talking about this?
jlynn - Just thought some more about what you said. How could it have gone to their profit and loss department that quickly? After 45 days of being late?
Re: Re: Closed by creditor regulations? Hmm... very good point jlynn! What should I do next then? Dispute with CRAs as paid before account closed? Write Providian a nasty letter?
Re: Re: Closed by creditor regulations? YOU CAN'T CHARGE OFF A 30 DAY LATE ACCOUNT!!!!!!!!!!!(IN THE REAL WORLD)
Re: Re: Closed by creditor regulations? This is Providian we are talking about But seriously, they can't charge-off an account until it reaches 180 days past due (I think). I would send a PFB letter to Providian regarding the reporting on this account just to see what they say. Providian will respond to your inquiry via PFB (in my experience at least).
