topic Re: NOT Capital One !!! in Credit Cards

NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 01:15:02 GMT

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)

Re: NOT Capital One !!!

happypill — Thu, 15 Dec 2016 01:21:09 GMT

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.

Re: NOT Capital One !!!

kdm31091 — Thu, 15 Dec 2016 01:22:08 GMT

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

Re: NOT Capital One !!!

Pway — Thu, 15 Dec 2016 01:27:35 GMT

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.

Re: NOT Capital One !!!

driftless — Thu, 15 Dec 2016 01:35:22 GMT

A little too much drama, and no facts here.

Re: NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 01:42:44 GMT

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

Re: NOT Capital One !!!

UncleB — Thu, 15 Dec 2016 03:50:04 GMT

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.

Re: NOT Capital One !!!

creditguy — Thu, 15 Dec 2016 03:55:34 GMT

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

Re: NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 19:04:57 GMT

@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 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.

Re: NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 19:15:00 GMT

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.

Re: NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 19:15:57 GMT

Credit Unions are more lenient when it comes to cash advances. Heck, DCU encourages it's members to take advantage of them. But I wouldn't abuse it by taking out multiple 5k advances and paying them off in a few days. I have on several occasions taken a hundred here and there and paying back within a few days.

Traditional banks I think frown on cash advances, but I don't think Credit Unions care as much as long as you pay them.

Re: NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 19:47:59 GMT

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

While I agrree with the spirit, not with the numbers. Millions of CapOne customers don't have CB (or even MyFico) accounts, so probably more like two out of a few thousand. (OMG, a thousand times worse that we first thought!!!!)

Re: NOT Capital One !!!

Anonymous — Thu, 15 Dec 2016 22:33:29 GMT

Hello all....

So just for the re-edicfication of the community I was the one who had all (4) of his accounts closed by Cap One due to excessive cash advances. For those who have not read the thread I had a very serious familial problem that had to be addressed immediately and, due to how I have structured my finances from a very nasty divorce I found the cash advance (especially after speaking with Cap One PRIOR to said activity, explaining the situation and being given their "no problem at all" response) it was the most expeditious manner for the situation. Perfect credit.....utilization less that 2%...low inquiries...high income.....but what upset me was two fold....1. that I called them and spoke with managers and asked if it would be ok...and was told "no problem...thats why we give you the line" and 2. that the reason they closed the cards was for past..present..or pending legal issues...which there were none.

This happened, ironically, about the same time last year (nice Christmas gift). I understand that ALL BANKS have the right, pursuant to the credit agreement entered into by and between the parties at hand, to close the cards for any reason whatsoever.....I just wish there would be more forthcoming reasons from EO's as to help those who, unlike myself, may not know how the true inner workings of credit affect our daily lives. Its ok to do something incorrect...we are not infallable, but to err without the possibility of knowledgeable correction is irresponsible of today's lenders and should be addressed as we mature throughout our lives.

Hope all are well...

Gregg

Re: NOT Capital One !!!

happypill — Thu, 15 Dec 2016 23:33:23 GMT

@Anonymous wrote:
@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 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.

Just wanted to point out that even with most special promotions, you're paying 1-3% immediately for using a BT check (there are a few 0 fee transfers, but they are very rare). So, let's say you're paying a 2% fee and doing it every month for the same amount and paying it off. That's equivalent to 24% interest for the year. So, rather than worrying about your account getting flagged for excessive BT, you should probably focus on the money you're flushing down the toilet.

Re: NOT Capital One !!!

Anonymous — Fri, 23 Dec 2016 19:26:30 GMT

@happypill wrote:
@Anonymous wrote:
@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 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.
Just wanted to point out that even with most special promotions, you're paying 1-3% immediately for using a BT check (there are a few 0 fee transfers, but they are very rare). So, let's say you're paying a 2% fee and doing it every month for the same amount and paying it off. That's equivalent to 24% interest for the year. So, rather than worrying about your account getting flagged for excessive BT, you should probably focus on the money you're flushing down the toilet.

You're right. Makes me just about as uneasy as the possible red flag. Very short term thing.

Re: NOT Capital One !!!

pipeguy — Sat, 24 Dec 2016 06:56:06 GMT

@Anonymous wrote:
Credit Unions are more lenient when it comes to cash advances. Heck, DCU encourages it's members to take advantage of them. But I wouldn't abuse it by taking out multiple 5k advances and paying them off in a few days. I have on several occasions taken a hundred here and there and paying back within a few days.

Traditional banks I think frown on cash advances, but I don't think Credit Unions care as much as long as you pay them.

+100

I use the "cash advance" option all the time with DCU and CFCU because I don't like to carry a debit card and the option is offered/encouraged by these CU's - I typically pay them off within a few days or a week at most and I have never had any issue with either CU, in fact both have raised my CI every time I've asked. Note that I never take cash advances on any of my other cards, although Barclays RING seems to advertise that it's an option they expect you to use if you want (not worth the risk IMO).