Lender closing inactive cards

For just about anything you want to get off your chest about credit cards.
4 posts
User avatar
djrez4
Centurion Member
Centurion Member
 
Posts: 1468
Joined: Tue Jul 31, 2012 12:20 pm
Location: United States

Lender closing inactive cards

Postby djrez4 » Fri Aug 08, 2014 10:17 am

In reading around to respond to Member's mortgage complaints, I came across the FDIC Compliance Manual for the Truth in Lending Act of 1968.

We all talk about putting charges on cards we don't use often, just to make sure the lender doesn't close them. Turns out that regulations allow a lender to close a credit card if it remains unused for three months! (see p. V—1.114, Treatment of Credit Balances, Account Termination — Section 1026.11, (B)) In practice, I haven't seen that happen, but, if you're really concerned, buy a pack of gum every quarter.
[RIGHT][size=100]- Sapphire Preferred - Freedom - Ink - Platinum - Everyday Preferred -[/size]
[/RIGHT]


MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Postby MemberSince99 » Fri Aug 08, 2014 12:46 pm

They can actually close it at any time for any reason or no reason at all technically you know.

User avatar
nismoZtuner
Centurion Member
Centurion Member
 
Posts: 1105
Joined: Thu Jun 27, 2013 12:39 pm
Location: EARTH -CA

Postby nismoZtuner » Fri Aug 08, 2014 3:48 pm

djrez4 wrote:In reading around to respond to Member's mortgage complaints, I came across the FDIC Compliance Manual for the Truth in Lending Act of 1968.

We all talk about putting charges on cards we don't use often, just to make sure the lender doesn't close them. Turns out that regulations allow a lender to close a credit card if it remains unused for three months! (see p. V–1.114, Treatment of Credit Balances, Account Termination – Section 1026.11, (B)) In practice, I haven't seen that happen, but, if you're really concerned, buy a pack of gum every quarter.


BOA card- I haven't used mine in a little over one year! made sure to cash out my cash back though
TU 752 (+4) - [5/9/2014] CK 726 - [11/24/14] EX 725 - [11/20/14] EQ 710
BankofAmerica Cash Rewards [2k] I American Express Blue Cash Everyday [3K] l Discover IT[2.5]
American Express Premier Rewards Gold [NPSL] I Marriott Rewards Premier [5k]
Chase Sapphire Preferred[7.3]
Inquires: TU(?) EX(?) EQ(?)
TCL-$19,800
Age-22

flan
Centurion Member
Centurion Member
 
Posts: 387
Joined: Tue Apr 09, 2013 10:16 pm
Location: chicago

Postby flan » Fri Aug 08, 2014 10:50 pm

MemberSince99 wrote:They can actually close it at any time for any reason or no reason at all technically you know.


Any reason not otherwise prohibited. They can't, for instance, close you account because they discover they don't like your skin color, or your religion. They can close the account because they discover you don't eat enough cauliflower; they'd have a harder for not enough bacon. (Probably a proxy for religion.).

The regulation the OP is siting says something to the effect of 'solely because you haven't paid interest', but it makes it more difficult for the bank to close the account due to non-activity until three months.

As a practical matter, I doubt many banks will close the account that fast. There are substantial costs of acquiring a new account, and throwing that away for a few months non usage is a waste.



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests