Comenity giveth-Comenity taketh away

[Anonymous]

Sorry to hear OP, this truly does suck. Scary to think that a company can just close or remove accts at their discretion like that, especially if you're in good standing.  I never heard of comenity.  Sorry to hear about your situation though. I can only imagine the frustration and anger. 

[Anonymous]

I have transfered the balance on the Farmers card to another one of my cards and as soon as it clears I will be done with Comenity. I was approved for the Farmers card with 0% for a year and 13.9 after that. The Total Rewards was also 13.9 and the Virgin was  15.9.

In the end it is their rules, I am upset, but I can live it.  I still have over 100000 of available credit, I will be fine. In a year the inquires will be gone and Life will still be good. 

[ddemari]

those are great rates and approvals. at least you are not upset by it! good luck in the future if you chose to decide to apply with comenity again. 

[Anonymous]

Wow, what volatile policies. I'm sorry to hear that and I'm sure Comenity will find that doing this will have lost them way more business than the risk it mitigated. Somebody will hopefully be fired over the decision to target account holders in excellent standing. What a poor way to run a business.

AA resulting in a CLD is one thing, outright account closure on folks with good credit profiles and great account histories is just dumb business strategy. Especially with the holidays approaching.

I personally have opened three new Comenity accounts over the past couple months, two of which are Visa (SG and TR). I'm sitting at 9 inquiries on EQ, one of which is a bogus HP from Comenity Capital Bank for PayPal Credit even though I'm an existing customer. I'll be livid if that one bogus HP causes me to pass over some audit target threshold and to lose my new accounts.

[Anonymous]

I am done with Comenity. All of the accounts that I had with Comenity were by HP, never a SCT. 11 of the inq on EQ are from them.  I had never been declined for any of their cards. I had closed 5 of their cards over the past year as they are longer used.  As they say when one door closes another one opens. I recieved an email  that Chase had given me a auto CLI on my Hyatt card from 10000 to 15000 today.  Life is good.

[Anonymous]

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@Anonymous wrote:

I am done with Comenity. All of the accounts that I had with Comenity were by HP, never a SCT. 11 of the inq on EQ are from them.  I had never been declined for any of their cards. I had closed 5 of their cards over the past year as they are longer used.  As they say when one door closes another one opens. I recieved an email  that Chase had given me a auto CLI on my Hyatt card from 10000 to 15000 today.  Life is good.

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Congrats on the great news from Chase!

Even if I end up in the same boat, I hope to have the same fortunate turn of events as yourself. I'm banking on Chase and other large national banks to continue to uplift my credit profile over the upcoming year.

The correct attitude can make all the difference.

[woodyman100]

I have waaaaayyyy more inquiries than you do and I've opened 3 new Comenity accounts in the last couple of months.
If they take it, they take it.
Not gonna hurt me.
I wanted the cards though or I wouldn't have opened them. (Game stop doesn't count. That was at my son's request)

[creditguy]

This is one of the downsides of computers and algorithms making decisions. some of these banks and card issuers have some really oddball policies that they aren't upfront with. If a company simply stated upfront with their terms and conditions what their likes and dislikes are, a lot of this CLD, AA and closures could be prevented or at the very least not leave a cardholder in shock wondering what happened. 

If you want to be conservative and limit your cardholders to people who don't do BT's, have too many new accounts or rack up a certain amount of inquiries in a set time, then say that upfront. I don't think anyone disagrees with AA if its warranted, I know if I were lending my money I'd be diligent as well,  but to close a customers cards outright who appears to be nothing but the ideal cardholder is plain ridiculous. 

I know there is no perfect solution and because of the sheer size of card portfolios its impossible for humans to do everything, but I think communicating your wants and needs a little clearer upfront could go a long way. Card companies expect us to act responsibly, I don't think it's too much to ask the favor be returned. 

[UncleB]

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@creditguy wrote:

This is one of the downsides of computers and algorithms making decisions. some of these banks and card issuers have some really oddball policies that they aren't upfront with. If a company simply stated upfront with their terms and conditions what their likes and dislikes are, a lot of this CLD, AA and closures could be prevented or at the very least not leave a cardholder in shock wondering what happened. 

If you want to be conservative and limit your cardholders to people who don't do BT's, have too many new accounts or rack up a certain amount of inquiries in a set time, then say that upfront. I don't think anyone disagrees with AA if its warranted, I know if I were lending my money I'd be diligent as well,  but to close a customers cards outright who appears to be nothing but the ideal cardholder is plain ridiculous. 

I know there is no perfect solution and because of the sheer size of card portfolios its impossible for humans to do everything, but I think communicating your wants and needs a little clearer upfront could go a long way. Card companies expect us to act responsibly, I don't think it's too much to ask the favor be returned. 

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+1

Whenever computer algorithms are involved, you can sometimes get crazy results. 

There's a whole blog entry on the BarclayCard 'Ring' site that tries to "explain away" why one of their customers got a CLI and a CLD on two different Barclay cards in the same day.  There's quite a bit of PR work going on (the entry was written by a Barclay employee) but it's an interesting read nonetheless, and it does explain a bit about the thought process that goes into writing the algorithms. 

IMO, it also reinforces the argument for making sure there's a clear path to a human for reconsideration (which 'saved the day' for the BarclayCard customer), which Comenity seems to lack. 

http://barclaycardring.com/t5/Barclaycard-Ring-Public-Blog/A-Case-Study-of-a-Credit-Line-Increase-an...

[creditguy]

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@UncleB wrote:

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@creditguy wrote:

This is one of the downsides of computers and algorithms making decisions. some of these banks and card issuers have some really oddball policies that they aren't upfront with. If a company simply stated upfront with their terms and conditions what their likes and dislikes are, a lot of this CLD, AA and closures could be prevented or at the very least not leave a cardholder in shock wondering what happened. 

If you want to be conservative and limit your cardholders to people who don't do BT's, have too many new accounts or rack up a certain amount of inquiries in a set time, then say that upfront. I don't think anyone disagrees with AA if its warranted, I know if I were lending my money I'd be diligent as well,  but to close a customers cards outright who appears to be nothing but the ideal cardholder is plain ridiculous. 

I know there is no perfect solution and because of the sheer size of card portfolios its impossible for humans to do everything, but I think communicating your wants and needs a little clearer upfront could go a long way. Card companies expect us to act responsibly, I don't think it's too much to ask the favor be returned. 

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+1

Whenever computer algorithms are involved, you can sometimes get crazy results. 

There's a whole blog entry on the BarclayCard 'Ring' site that tries to "explain away" why one of their customers got a CLI and a CLD on two different Barclay cards in the same day.  There's quite a bit of PR work going on (the entry was written by a Barclay employee) but it's an interesting read nonetheless, and it does explain a bit about the thought process that goes into writing the algorithms. 

IMO, it also reinforces the argument for making sure there's a clear path to a human for reconsideration (which 'saved the day' for the BarclayCard customer), which Comenity seems to lack. 

http://barclaycardring.com/t5/Barclaycard-Ring-Public-Blog/A-Case-Study-of-a-Credit-Line-Increase-an...

Great Point! 

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