HSBC Closed My Credit Card Account --guess why

[greg-n-jen]

I got a letter in the mail today-- Household Bank closed my account--due to inactivity!--and it also said this will affect getting credit with them in the future I have had the card since 2003 --valued member it says on the card . I checked through my files and see that the last time I used it was April of this year. So 5 months of inactivity and they close my account What's up with that? Guess they didn't like that I paid it off My husband who is a debt collector --yep, the hated person who calls people and tells them to pay up or else -- says he has never seen anything like it. We have excellent credit, I feel like calling them and saying "oh well, your loss". Has this ever happened to anyone?

 

[whjoyjr]

I am not surprised. AMEX has been pulling Financial Reviews of cardholders left and right recently. Credit is getting tighter, even for A+ customers...

 

[NCRedding]

Citifinancial did this to us several years ago. I had had the card for about 3-4 years, and had used it once. One month they sent a letter encouraging me to use the card by giving me a $20 credit. I didn't charge anything that month, so the next month they sent me a letter closing my account "not at customer's request". It really ticked me off.

 

[Helene]

I have 2 accounts, 1 with American Express the other with Citibank.

Both have large balances locked in at 2.99%. We used the credit lines for home improvement projects and I haven't been rushing to pay them off because of the low interest rate.

Even though we also have excellent credit & have never been late with a payment, I'm getting worried that they will pull the same kind of nonsense with us

I've decided to accelerate our payments in the hopes that we get past this happening. It reinforces Dave Ramsey's saying that if you play with snakes, eventually you'll get bit.

I feel one at my toes

 

[disneynutt1225]

I had the same thing happen with HSBC a few months ago! We were going to use DH's card to take out a cash advance (really low rate) and when we went to check the balance available it said the account was closed due to inactivity! He was a cardholder for a few years and they just turned it off!! I couldn't believe it!

 

[momrek06]

I have 2 accounts, 1 with American Express the other with Citibank.

I do to!! AMEX CLEAR and CITI PLATINUM...I recently got them and they are 0%apr, 0%bt, no annual fees BUT I have no idea when I will use them!!!

I just wanted to get them "in case" but I do not even carry them with me in my wallet.

Hmmm...interesting, these credit card companies...huh...:

 

[HeyIt'sMe]

My MIL got a letter from her credit card company (I don't recall which one) that her APR% was being increased. The reason? She didn't use her card enough!

 

[KandiB47]

A lady called in to Suze Orman last night and this happened to her too. Apparently it's something new the credit companies are doing as "incentive" to use your cards more often.

 

[Muushka]

About 20 years ago I had a CC that paid 2% back on all purchases. I used it for everything.
I always paid it in full, never carried a balance.

We got canceled due to paying off balance every month. Oy

 

[eeyoregon]

I am not surprised. AMEX has been pulling Financial Reviews of cardholders left and right recently. Credit is getting tighter, even for A+ customers...

My friend uses her AMEX like a debit card. She charges everything to it to get the cash back award and then pays it off each month. She recently received a nasty letter informing her that she is NOT allowed to do that and if it continues they will cancel her account. AMEX states she is breaking the credit card contract by using it like a debit card. Good grief.

 

[julie007]

Another HSBC cancelled customer here. We didn't care though because their rates were too high.

 

[WETWHISTLE]

Sounds like these Credit Card companies are getting mad because people aren't letting them take advantage of them!

I use my Discover Card throughout the month and then pay it off at the end of the month. I earn the cash back. I never have a balance! I've never gotten anything from them regarding this.

I have a Citicards Mastercards and I use this card once a month and always pay off the card at the end of the month. Since I started doing this they increased by credit line.

I think if I were the OP, I would call them about it. I'd let them know I was mad about it, and that I would tell everyone I know of their practices.

 

[neatokimmo]

Citi will close accounts for inactivity because its a fraud issue. People that don't use the cards have a higher chance of losing track of them and not noticing when fraudulent charges appear. I've not heard of any credit card company closing an account because its paid off every month. I do know they run credit checks every so often for credit line increases and if they see a bad mark on your credit or too much credit they will close it or raise your APR because you've become high risk.

I've been using my credit card like a debit card for three years and I've not been closed out because of it. They are getting a lot of transactions fees out of me that covers their costs of having me as a client

 

[arlenesp]

I am not surprised. AMEX has been pulling Financial Reviews of cardholders left and right recently. Credit is getting tighter, even for A+ customers...

I seem to remember some story that Amex sold their credit card business to HSBC. I could be totally wrong here but it does stick in the back of my mind.I know they offer CCs thru MBNA as well.

 

[neatokimmo]

AMEX is Citi, has been for awhile now, I can't remember when the conversion happened.

 

[rflorek]

AMEX is Citi, has been for awhile now, I can't remember when the conversion happened.

DECEMBER 14, 2004 -- Citibank yesterday became the second U.S.-based bankcard issuer to forge an agreement to issue American Express cards in the United States. While the partnership of the two huge card companies has enormous potential for the corporate card market, so far it is limited to personal cards.

Citibank follows an Amex deal with MBNA that materialized after a court-mandated repeal of Visa and MasterCard rules that forbade its issuers from working with the likes of Amex. Like the MBNA deal, Citibank told BTN it has no plans to move the Amex partnership into the commercial card space.

Citibank will be responsible for card issuing, customer management, account services, billing and credit management as well as "designing the card product features," while Amex will process transactions on its merchant network. Financial components of the deal were not yet revealed, yet industry insiders contend Citibank will command a higher payment from Amex than from Visa or MasterCard.

 

[whjoyjr]

Citifinancial did this to us several years ago. I had had the card for about 3-4 years, and had used it once. One month they sent a letter encouraging me to use the card by giving me a $20 credit. I didn't charge anything that month, so the next month they sent me a letter closing my account "not at customer's request". It really ticked me off.

Since they closed the account, it (most likely) reported as "Closed be the grantor". That is more of a FICO hit that "Closed by consumer"...

My wife and I are down to 2 cards, one in her name, one in my name. Since they are with our credit union, I am not too concerned that they will get closed due to inactivity or PIF each month...

Our Chase Disney get the ax after we close on our new home and I get my rewards transferred to my rewards card for our December WDW trip...

 

[arlenesp]

Amex and HSBC are linked with the overseas cards.UK,Canada. Some of the US amex cards which were offered as MC were serviced by MBNA. Don't know if they still are. Wasn't aware of the citibank link.

 

[DVC-Don]

Discover closed one of my BiL's cards a few years ago on non-activity.

 

[leila]

HSBC didn't close our account BUT after we paid off the no interest balance transfer early on their card they did raise our interest rate from 11 1/2 to 24% interest . Needless to say I closed that card immediately! I was so mad!!!