Is it LEGAL for a creditor to close your account based off something that doesn't exist?

[Anonymous]

Yes. I understand they can close it at any time for whatever reason but why that one, when I contacted the EO I was told to check my credit report and if nothing was there hire an attorney to check with the Courts/DOJ. So of course this created extreme stress in that I don't know if I'm being sued, someone stole my identity or whatever and wasn't notified. Why not just say as a business decision were closing the account. I went and hired an attorney to do an intensive check on me and try to get information from Cap1 and it appears there isn't any. i wasn't sure of what kind of attorney to retain so I hired a regular civil attorney but ran to a dead end because I needed a consumer rights attorney. I just don't see how out of all reasons to say we're closing an your account to use because of legal action and their not be any. That's scary. Then cause the individual unnecessary stress and/or take on the financial obligation of hiring an attorney to validate or refute their accusations.

[Anonymous]

OP, I hope you get this resolved soon. Keep in mind that Capital One is one of the issuers that uses three other CRAs, other than TU, EX and EQ. You may want to check your reports with Chexsystems, Innovis and I don't remember the third CRA. Maybe EO can narrow it down for you.

Good luck.

[Anonymous]

Hi, thank you for your response. I will check innovis. I did check with check chexsystems and there was nothing there regarding a legal action. Since the account has been closed I've tried to get information from the EO and each person just says they will research it and let me know but I can reapply if I want.

[redbeard]

Just curious...... you keep mentioning 'pending legal action' and 'no legal action on the reports'.  

I think I read this a bit differently then you do.  My initial guess is one of 2 things, depending on what is really on your report, but something has them spooked.

1.  There are open collections on your report and they feel you will be sued very soon.  Since its pending, it has not yet been filed.

- or -

2.  Based on what they know about you, or at least think they know about you, they feel you are at risk for filing bankruptcy soon and want to manage their losses now.

- or -

3.  You are in foreclosure or reposession on a tradeline, or pending something similar.

Look past the 'legal action' part.  Are there other derogatories on your report?  If so, especially if they have gotten worse recently, that is what has caused this to happen.

Dan

[Anonymous]

Hi Dan,

They're have never been any past or pending or present legal action. I don't have anything in collections. I am not a homeowner yet, all of my bills are paid on time and in good standing. I've never filed bankruptcy. Which is why I found there accusation so mind blowing. I don't have anything in my public records. i pulled my consumer report there is nothing there that displays me being at any risk of a financial hardship. I even had a live scan just to be sure there wasn't something anywhere else and it came back with zero results.

I don't see how they can say that and give me any information with regard to what they're talking about or where the information is coming from so that I can verify it. I shouldn't have to go on a wild goose chase. I had my card with them for almost 14 years never been late or over the limit and have cards with higher limito. No other card or financial institution I do business with has any issue and I've received increases in my limits with my other cards and new lines of credit since this happened which why I'm even more puzzled as to what they are referring to.

[Anonymous]

Also at the time there was nothing pending or even before then. If there was something in my report derogatory then I wouldn't even be putting up a fight because their allegations would be valid.

I was on Equifax forum board a few days ago while trying to research various resolutions and this happened to someone else also. However I was unable to connect them as they posted their comment anonymous.

[Anonymous]

Correction : they did not give me any information as to what they were referring to*

[Anonymous]

So all three of your credit reports are prefectly clean? Zero derogatory entries? No late payments? No charge offs? Nothing at all? If that's the case, than maybe there's a name mixup.

[Anonymous]

Hi,

There is no derogatory entries on any of the reports l. I subscribe monthly to all three agencies, I don't have any charge offs, no public records, never been sued. I feel that it's a name mix up so I've reached numerous times and the EO each time says they will research it Nd get back to me and each time no one ever does. If there was any of those things in my report I could understand them using those reasons against me because then it would be valid and an actual record would be there to justify it. Around the time it happened there was a class action against them regarding protection plans or something and I asked was it that and they said no. I've been trying to investigate it with out any help from them at all.

[Callandra]

It must be some sort of mix-up -- what's also weird is that Cap1 closed your card and they're reporting it as closed by consumer? I wonder if some CSR somehow screwed up? And this pending legal action is another mix-up? Weird.