BoA Reversal - account closed by credit grantor's request

[Anonymous]

Typical story. I had a credit card with MBNA which eventually became Bank of America. I saw my credit limit decrease over the years, and I finally decided to pay off the balance so I could end my relationship with BoA. I had a pre-approved offer with my credit union with a great rate, so I opened up a new Visa and transferred most of my Bank of America balance.

Before I could pay off the remaining balance, I was notified by mail that Bank of America had closed closed my credit card account. I called to protest because I did not want "account closed by credit grantor's request" to be on my credit report for the next 10 years.

When I called Bank of America, I was subjected to a very rude CSR. I don't believe that I was unreasonable. I only wanted to keep my account open long enough so I could pay off the balance so my report would show that I had the account with BoA. She asked that I provide updated personal info. Once I did, she immediately said no and then used my information to insult my personal circumstances. She then went on to mock me and point out that I didn't deserve to possess a credit card. Odd because even though BoA might have found me unworthy, I had just opened a Visa with my credit union for a $20k limit (721 - Experian). As you can imagine, I was incensed because the CSR crossed the line with her demeaning lecture.

I took my issue with BoA to the Consumer Financial Protection Bureau and filed a complaint online at consumerfinance.gov. My complaint was forwarded to BoA, and I received a written reply from a "Consumer Advocate" out of the "Office of the CEO and President" in Phoenix. In the letter, BoA doubled down and stated that they "reserve the right to close or modify an account at any time."

I researched the law, especially the Credit Card Act of 2009, and learned that this is factually untrue. In Title I, Section 101, the Credit Card Act of 2009 clearly states that I must be informed of any significant changes to the cardholder agreement and the creditor is required to provide 45 days notice before the effective date. So I disputed the response through consumerfinance.gov, and I then waited. A few months later, I received a written response from the same "Consumer Advocate." Same response.

I went through the CFPB website, and I realized that my complaint probably wasn't going to be resolved by them. Although it seems obvious that termination of a cardholder agreement would be considered a "significant change" and covered under the Credit Card Act of 2009, it is not and specifically excluded on the CFPB website. In this case, BoA is following the rules as enforced by CFPB. I needed to contact someone outside of CFPB who could question this policy and hold them accountable. So I contacted my Congresswoman.

I filled out the appropriate forms for constituent services at my Congresswoman's local office, and I wrote a letter of my situation and pointed out that CFPB's policy toward credit card termination without prior notice violates the intent of the Credit Card Act of 2009 as it is written. I got a quick response from a staff member. After she made a few phone calls, I heard from someone out of Delaware from the "Office of the CEO an President" and they agreed to report my account as "closed by consumer" since I fully paid off my balance with BoA within 2 weeks after my account was closed. I now have a written letter from BoA as confirmation.

Was it worth it? Probably not. My score has been going up since February, and it's highly doubtful that my account being closed with a balance by BoA would have made a difference. But that line in my credit report would have bothered me for the next 10 years.

I still believe that my situation was a violation of the Credit Card Act of 2009. I should have been given 45 days notice before my account was terminated. It's stated in the law. I tried but was so grateful that I got immediate help that I did not push my Congresswoman's staff member to go after CFPB's policies. Maybe someone else can get their Congressman to "strongly suggest" that the Consumer Financial Protection Bureau should follow the law as it is written.

I hope someone else can use this information. I wish I could follow through and eliminate credit card termination and even credit limit decreases. But I'm done for now.

[Anonymous]

I like it, great job!!!!

[stevehbold]

I love to hear things like this, way to be proactive. great job!

[LS2982]

WTG!!!

Another reason I will not do business with BofA.

[Vesey]

This sounds like a case of someone reading something and interpreting it to mean what he wants it to mean. I'd like to see the exact wording of what the original poster is referring to, as everything I've read about the CARD Act suggests BoA was absolutely right in this matter, and the original poster is spreading misinformation. Credit is a privilege, not a right. Your account can be terminated at any time for any reason. The CARD Act simply dictates how many days the credit card company has to notify you *after* they have terminated your account.

[BrokaToe]

Makes one wonder what the circumstances of the account closure were really about.  Normally CCCs don't just close accounts for no reason at all

[webhopper]

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@LS2982 wrote:

WTG!!!

Another reason I will not do business with BofA.

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+10000.   At least if Discover tells you no, they are so nice about it you feel good when you get off the phone

[Anonymous]

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@BrokaToe wrote:

Makes one wonder what the circumstances of the account closure were really about.  Normally CCCs don't just close accounts for no reason at all

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Pay off your credit cards, don't miss payments, Keep a good credit record = You will never have to worry about things like this ever.

BoA has their reasons for closing cards. I don't think they would close any account in good standing unless requested by the consumer.

There are holes in the OP's story as he never did explain how his credit record is and why BoA would want to close an account. There should be a reason. Bad Credit Risk maybe? We may never know....

[Anonymous]

Very interesting...hope it all works out

[marty56]

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@Anonymous wrote:

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@BrokaToe wrote:

Makes one wonder what the circumstances of the account closure were really about.  Normally CCCs don't just close accounts for no reason at all

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Pay off your credit cards, don't miss payments, Keep a good credit record = You will never have to worry about things like this ever.

BoA has their reasons for closing cards. I don't think they would close any account in good standing unless requested by the consumer.

There are holes in the OP's story as he never did explain how his credit record is and why BoA would want to close an account. There should be a reason. Bad Credit Risk maybe? We may never know....

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 BofA has a dark side which I found about about the hard way.  My crime with them was during my DMP, I opened a Sams club card and they quietly kicked me out of the program and raised the minimum payment due so I was paying less then owed for 6 months before they finally sent me a letter about it.  Anyone here ever heard of a CCC not calling and sending multiple letters if you paid less than owed.  I didn't think so. 

I believe the OP's story and you can believe mine or not.