Credit Card Issuers Cancel Accounts

According to an online report by the Wall Street Journal, some credit card issuers are canceling borrowers’ accounts without telling them – and it’s legal. The credit card issuers have been canceling the cards and following up with letters of explanation, but credit card users don’t always know this in advance. Often, they go to use their cards only to find that they’ve been canceled, even when their credit and payment histories have been good.

An excerpt from the article:

“If an issuer cancels an account due to customer inactivity, default or delinquency, notification to the cardholder isn’t required, according to the Equal Credit Opportunity Act. However, an issuer is required to notify consumers about an account closure if the issuer terminates it based on other factors, such as information from a consumer’s credit report. In these cases, like Ms. Horowitz’s, written notification is provided within 30 days of—not necessarily prior to—the account’s being closed.”

Source:  Cardholders Get Rude Surprise at Register, www.wsj.com, by Mary Pilon

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s