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Valued Contributor
Posts: 1,271
Registered: ‎01-11-2015
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NOT Capital One !!!

[ Edited ]

Definitely not posting this to cause an upheaval, but as we know whenever AA occurs, especially that out of character, we all like to to know about it in case.

 

Just read on CB that TWO members got their accounts closed today by CAPITAL ONE of all lenders!  Only reason given so far is "past, present or pending legal action"...

 

Only other person ive seen get their accounts closed by them was on here, and got the same reason until he called EO to find it had nothing at all to od with that but rather due to excesive cash advances -- so perhaps this is a generic reason they use when closing accounts??

 

I have encouraged said members to update accordingly and contact the EO right away -- one guy had all 4 accounts closed.  I realllyyy hope Cap1 is not jumping on the train as they seem to be the unshakable...but then, any lender can AA I know.

 

(Mod Cut-Im sorry links to that site cannot be posted on myFico)

 

 

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Valued Contributor
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Registered: ‎01-09-2015
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Re: NOT Capital One !!!

I'd be interested to get some more info before drawing a conclusion in this case.  Any lender including Capital One could take AA if something pops up suggesting they aren't going to get paid back.  Pending legal action could mean a BK or line or something.  Excessive cash advances could indicate a negative credit trend as well.

 

I'll wait to hear more.

Super Contributor
Posts: 8,368
Registered: ‎11-12-2014

Re: NOT Capital One !!!

The Capital One being unshakeable thing is just something that's been repeated enough that people accept it as fact. They're a bank like any other and if they sense risk they'll shut down your card. Are they less sensitive than say Barclay? Sure. But AA happens with any lender as you noted.

Cash advances are a red flag with any lender really
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Valued Contributor
Posts: 2,515
Registered: ‎11-11-2014

Re: NOT Capital One !!!

I have read that before here on the boards.  A member got his/her cards shut down because of suspected legal action.  I cannot recall if they got their cards reinstated or not but this is not the first I am hearing Capital One doing this.  

 

Most certainly cash advances is a sign of financial trouble and any lender can take AA at any time.  I know its weird hearing Capital One doing this but we all have to remember that a financial institution is a business and that is how they will conduct themselves.  If they see or suspect trouble then they will take action to the account.  

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Valued Contributor
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Re: NOT Capital One !!!

A little too much drama, and no facts here.
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Valued Contributor
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Re: NOT Capital One !!!

True a bit dramatic and I'm sorry if I jumped the gun, just never seen this with capital one let alone two people in one day reporting on it. But I concur with all the statements that any lender can do this due to perceived risk especially with BK or legal issues
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Re: NOT Capital One !!!

This is nothing new.

 

The case you mention that was reported on this site a while back wasn't just about cash advances... the member was taking out multiple, frequent cash advances then quickly paying them off, only to rinse and repeat (I forget the reason he did this, but there was a purpose).  Capital One chose to close all his accounts rather than deal with the government paperwork that kind of activity requires by law (that activity pattern is one of the indicators of money laundering).

 

I've not read the reports on the other site, but if you say it was for 'legal' reasons that actually makes perfect sense.  Rather than deal with the headaches (i.e. extra reporting/paperwork) caused by someone's questionable behavior, Capital One simply decides they aren't worth it. 

 

It seems like a reasonable business decision to me, and is certainly nothing for 99.9% of their customers to be concerned about.

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Posts: 1,938
Registered: ‎09-16-2007

Re: NOT Capital One !!!

[ Edited ]

Drama indeed. Two cardholders out of a few million, yeah I'm not getting concerned anytime soon. 

Established Member
Posts: 66
Registered: ‎08-04-2016
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Re: NOT Capital One !!!

[ Edited ]

UncleB wrote:

This is nothing new.

 

The case you mention that was reported on this site a while back wasn't just about cash advances... the member was taking out multiple, frequent cash advances then quickly paying them off, only to rinse and repeat (I forget the reason he did this, but there was a purpose).  Capital One chose to close all his accounts rather than deal with the government paperwork that kind of activity requires by law (that activity pattern is one of the indicators of money laundering).

 

I've not read the reports on the other site, but if you say it was for 'legal' reasons that actually makes perfect sense.  Rather than deal with the headaches (i.e. extra reporting/paperwork) caused by someone's questionable behavior, Capital One simply decides they aren't worth it. 

 

It seems like a reasonable business decision to me, and is certainly nothing for 99.9% of their customers to be concerned about.


If you do too many cash advances that seems to trigger a red flag, but I did not realize about the extra work for the creditor to go through. Are there certain amounts?

 

Also I was going to post this seperately, but if I can just quickly ask about BT checks being used monthly or every other month for a few months then paying the balance off every month if that is looked at as being a red flag, that'd be great. As opposed to going to the ATM or what have you.

 

I've been using BT checks quite heavily recently, but paying the balance every month. Certainly am not money laundering and would not want any creditor thinking that. It's only for a few months. Seems like BT checks and cash advances are quite similar unless the computer registers the transactions differently in regards to firing off warning signals. The creditors still send the BT checks and actually more of them. Like I said it's only like a 4-5 month thing with paying the balance in full before the statement even cuts.

 

Sorry to hijack, if only slightly Smiley Sad To swing it back around maybe the overall profile we hear so much about comes into play at this point versus opening a card and quickly doing high amounts of cash advances when you only have a year or whatever of credit history. I don't know.

Established Member
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Registered: ‎08-04-2016
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Re: NOT Capital One !!!

[ Edited ]

OP what is CB and also I would like to read more about this if possible. If I can jump to conclusions it looks like they had a bankruptcy pending or were getting sued for an unpaid balance which would make sense to be closed down.

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