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Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
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Re: Hooters credit card closed by credit grantor

The OP is not in a position to fight any bogus reason(s)the creditor provided.  He/She is talking about settling the account(which isn't possible), paying only the minimum and possibly paying late. 
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: Hooters credit card closed by credit grantor


tammy343 wrote:

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.



tammy343 wrote:

Thank you both for your answers. I will pay more than the minimum Payment ( I wish i could pay it off in full today ) .In about 4 Months it will be paid in full though and i'm done with Hooters.I will never apply for a Hooters Credit Card again. I'm glad it doesn't affect my Credit Score in a negative way.

Thanks again for the Advice. 



tammy343 wrote:
They stated in the Letter i open too many new Accounts in the last 6 Months. The only Account i opened was the Hooters Credit Card 5 Months ago that's why i couldn't understand why they closed it. I have never been late or over my Limit. I called them and they wouldn't give me any explanation. They just said once it's closed they won't do a re-consideration and re-open the Account. I was just worried what i means to my Credit because i have been trying to rebuild my Credit for the last  2 Years and 3 Months ( no late Payments or Collections ). I don't need any negative marks on my Credit.

You must be reading something different than I am.

Super Contributor
DI
Posts: 5,744
Registered: ‎01-28-2008
0

Re: Hooters credit card closed by credit grantor

Hi,

 

I have a few questions. I just reveiced a Letter from Hooters that they closed my Credit Card because i opened to many accounts in the last 6 Months ( which isn't true and i called the 1800 number and they said when the account is closed they can't do anything ). I have no late payments,never went over the Limit so i am really surprised about it.

How will this effect my Credit and Credit Score? I still have a balance on the Credit Card. They send me a Letter with the minimum Payment. Will my Credit be okay if i still make the minimum payment or should i negotiate a settlement for the amount that i still owe?What would happen if i pay late one Month? ( are they still reporting a 30 day late on the credit report ?) .

I'm so confused this has never happened to me before and trying to build my Credit. Any Advice is highly appreciated. Thank you

 

 

 

That is the OP's original post.

Valued Contributor
nothingman02
Posts: 1,072
Registered: ‎02-15-2009
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Re: Hooters credit card closed by credit grantor


DI wrote:
The OP is not in a position to fight any bogus reason(s)the creditor provided.  He/She is talking about settling the account(which isn't possible), paying only the minimum and possibly paying late.

Hi DI,

OP is not expecting those scenarios of paying late or settling, but rather, is unfamiliar with this new situation and is wondering if it would change things, and contemplating various scenarios and their effect on FICOs. And on that basis, its also not a valid deduction that OP is unable to fight any bogus reasons.

 

I do agree that its meaningless in recent conditions. Me being me, I would however fight any bogus reasons. I mean they could simply reinstate the account and close it the very next day with a slightly less ridiculous reason, but thats just me. 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: Hooters credit card closed by credit grantor

If Merrick Bank gets an inquiry from the Office of the Comptroller of the Currency into why they cited a bogus reason for closing an account and it is reopened it will not soon be closed for yet another convenient reason. As I stated before this methodology has worked for those whose Chase accounts were closed bogusly and might just work well here. Based on the information presented in this thread only the OP would know (and no one else) if there is anything else lurking it the background!
Member
Posts: 25
Registered: ‎05-23-2009
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Re: Hooters credit card closed by credit grantor

The terms of the credit card ought to be still in effect, unless they demanded payment in full.  Otherwise you still make the monthly 3 or 4% of the balance plus interest, if any.  I'd pay it off in full and get it over with, if able, otherwise conitue to pay, but more than minimum.

 

You'll need to get a copy of your credit reports and see how the card issuer reported the account status.  I had a Citi bank card that was closed by Citi because the card was a partnership with the regional transportation authroity (Metro in DC) that must not have been profitable for Citi.  Needless to say, Citi reported it as closed at consumer's request.

 

There are many camps about what a closed account status should say, and the aforementioned one is a prefered one.  What it can hurt is utilization ratio.  Thus your score takes a ding.  For example, lets say all your revolving accounts had an available credit of $15,000.  Your debt is $5000 making your ratio 33%.  One of your cards is closed by the issuer and its CL was $5000.  Your utiliation ratio just shot up to 50%.  That might be a red flag to a potentail lender/extender of credit.

 

Simplified, but if you comply with the letter's instructions there won't be any problems.  If you feel that strongly about it, you need to consider reporting the issuers actions to your state's attonery general's office or consumer affiairs division.  They will investigate and determine what actions, if any, is needed.  You could file a complaint with the FTC, but they will not do anything on your behalf.  

 

 

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: Hooters credit card closed by credit grantor


BrettW wrote:

What it can hurt is utilization ratioThus your score takes a dingFor example, lets say all your revolving accounts had an available credit of $15,000Your debt is $5000 making your ratio 33%.  One of your cards is closed by the issuer and its CL was $5000Your utiliation ratio just shot up to 50%.  That might be a red flag to a potentail lender/extender of credit.


Both the balance and the CL of closed accounts are included in the UTIL calculation until the balance reaches zero. At that point both are excluded. A closed account with a balance has no effect on your UTIL %.


BrettW wrote:

If you feel that strongly about it, you need to consider reporting the issuers actions to your state's attonery general's office or consumer affiairs divisionThey will investigate and determine what actions, if any, is neededYou could file a complaint with the FTC, but they will not do anything on your behalf.  


State AG's, consumer affairs offices and the FTC do not have jurisdiction over banks. The Office of the Comptroller of the Currency does and they do not like state AG's sticking their nose into banking matters. The FTC will not do anything for you because banks are not their businessYou need to address your complaint to the OCC.

Member
Posts: 25
Registered: ‎05-23-2009
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Re: Hooters credit card closed by credit grantor


creditwherecreditisdue wrote:

 

State AG's, consumer affairs offices and the FTC do not have jurisdiction over banks. The Office of the Comptroller of the Currency does and they do not like state AG's sticking their nose into banking matters. The FTC will not do anything for you because banks are not their businessYou need to address your complaint to the OCC.


Agreed, never said they did.  FTC does have authority on credit reporting.  I would assume it would need hundreds of complaints against a single entity before it took action.  Bottom line, there is lots of things she can do and those were my recommendations.  You have pick your fights.  Most card issuers are betting you just roll ever and take it.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
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Re: Hooters credit card closed by credit grantor


BrettW wrote:

creditwherecreditisdue wrote:

 

State AG's, consumer affairs offices and the FTC do not have jurisdiction over banks. The Office of the Comptroller of the Currency does and they do not like state AG's sticking their nose into banking matters. The FTC will not do anything for you because banks are not their businessYou need to address your complaint to the OCC.


Agreed, never said they did.  FTC does have authority on credit reporting.  I would assume it would need hundreds of complaints against a single entity before it took action.  Bottom line, there is lots of things she can do and those were my recommendations.  You have pick your fights.  Most card issuers are betting you just roll ever and take it.


It's not a credit reporting issue in any meaningful way. The core problem here is that an appearantly bogus reason was cited for the closure. That is an OCC problem. Others who picked that specific fight with Chase have prevailed and had their account reopened. That would seem to be the best (and most likely only alternative) outcome possible and a desirable one.


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