In the last few months, we’ve heard from plenty of readers that not only are their cards being canceled, but they’re also finding out the hard way: At the cash register while trying to make a purchase.
Over at Consumerist is the tale of Joey, who saw four (yes, four) of his Chase cards canceled. Plus, his Chase Freedom rewards are no more.
From Joey’s letter:
The rep told me my card had been canceled. Not only my Freedom card, but also my 3 other Chase credit cards (I use them for different rewards). I told him it was outrageous that I hadn’t received any early notification, and all he could say was that I would be getting something in the mail soon. I asked why my cards were canceled, and his response was that I had too many loans out so Chase considered me a risk. For the record, I do have loans that I’m paying off - my student loans and the loan on a recently purchased house. However, I’ve always paid the balance on my Chase credit cards in full every month and rarely ever am I late (the last time was at least 6 months ago). Nothing in my history with them would cause them to think I would not pay my bills. The rep couldn’t do anything for me so I asked to speak to a supervisor. I was told they were busy and that one would call me back. No one has since.
So how much, if any, of a heads up should consumers expect from their card providers?
According to Regulation B of the Equal Credit Opportunity Act, a written notification to consumers is required if a company takes “adverse action” against them. In most cases, the notification must be sent within 30 days.
Most such notifications are sent by snail mail, which means they can be lost in the shuffle of other announcements, offers and marketing material that card issuers send to customers. Throw on top of that people who travel, move frequently or don’t check their mail and it makes sense that a card could be canceled without a customer’s knowledge. If you’re worried about having your card canceled, call your issuer and request email alerts as well. And regardless, now more than ever is the time to keep a careful eye on your mailbox.
For Chase customers, holders of accounts closed for inactivity are provided a written notice ahead of time, Chase spokesperson Stephanie Jacobson says.
Banks are all about text alerts now, too. Have any readers tried receiving these alerts for credit limit reductions or account closures?
Source: www.banks.com.
Recent Comments