topic Re: Comenity closed all my accounts in Credit Cards

Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 13:42:04 GMT

A week ago I registered my Labrador puppy on AKC and got a pre-approval pop-up. Couldn't resist even though I knew better from reading the forum. Approved instantly for $6k. Yesterday I woke up to a bunch of alerts from MYFICO and Experian. Comenity had closed all my accounts. I had 3 store cards and the AKC approval. I had a balance (statement hadn't cut yet) on O'stock of $185. I was able to log on and pay that. The only thing I'm not sure about is it charged my AKC registration to the Visa upon approval ($55) the card actually came in the mail later yesterday after I was notified that it was cancelled. I'm not sure how to pay the money I owe on that.

I know this has been talked about a lot on the forums, but just wanted to share. So far I haven't seen a score change anywhere. I'm not that upset about it, other than the AKC Visa sig that I planned to use for a surgery that my dog needs. I really hate the way Comenity does business, so I know I'm better off without them. I sent my paperwork in for NFCU. I hope to start out with them in the next few weeks.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 14:10:51 GMT

Very sorry to hear about that - I hope you get approved quickly with NFCU. I think it's a good idea for anyone to keep their exposure with Synchrony or Comenity to only the stores they regularly shop at and the CL's they need; I'm beginning to get the hunch that the so-called shopping cart trick's days are numbered.

I do wonder, though, what were your CL's on those three existing Comenity cards? One factor that comes up a lot, though there are exceptions, when accounts are mass-closed like that is that the cards all or mostly had big credit lines on them, as in 5 figures, and that the account holders had been very active with CLI requests and other ways of getting their lines boosted.

EDIT: It's possible that if you call the Comenity "backdoor" number (there's a thread elsewhere listing all those phone numbers) and ask for a recon, you might be able to get at least one of those accounts reinstated.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 14:15:42 GMT

Overstock - $3500

Williams sonoma - $700

Jcrew - $300

Those were all opening CL's. I opened these store cards all together a couple months ago, SCT. I'm sure that the multiple new accounts spooked them. I just don't like the way the shut everything down with no dialogue. They obviously don't have to approve anyone for anything, but once they have paying customers on board I think there should be some level of customer service.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 14:19:35 GMT

@Anonymous wrote:
Overstock - $3500
Williams sonoma - $700
Jcrew - $300
Those were all opening CL's. I opened these store cards all together a couple months ago, SCT. I'm sure that the multiple new accounts spooked them. I just don't like the way the shut everything down with no dialogue. They obviously don't have to approve anyone for anything, but once they have paying customers on board I think there should be some level of customer service.

I suspect you're right, which just backs up my hunch that Comenity may be fixing to lower the boom on the SCT in the not-so-distant future.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 14:40:39 GMT

Thanks Joe8185, I guess we'll see what they do to fix the loophole that they created! The irony is, they set this up to prompt people to make impulse decisions when they were checking out on a store website. And it works! Now they obviously don't like the results.

Anyway, I may try your suggestion on the recon for 1 account. Even though I hate to even be involved with them, I wasted a HP on that "pre-approved visa signature" so I gues it's worth a phone call to try a recon on that.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 15:06:38 GMT

I think you've hit the nail on the head. IIRC, Synchrony as well as Comenity had the SCT loophole back a few years ago, but Synchrony appears to have closed it for just this exact reason; they were trying to get people to apply for their cards on impulse, but then they ended up with a lot of people exploiting the facility to get scads of cards many of which ended up never being used and/or inflated to preposterously large credit lines for the sake of increasing amount of available credit/lowering utilization to boost people's scores. Maybe Comenity is getting wise as well, so if that happens, I suspect we'll start to see posts later this year asking "what happened to the SCT? I can't get it to come up anymore no matter what I try!"

Anyway, good luck on the recon!

Re: Comenity closed all my accounts

MrsCHX — Tue, 18 Apr 2017 16:32:13 GMT

It seems that the issue isn't opening *A* card with SCT. People who see swift AA from Comenity have generally opened multiple cards using SCT in a short window of time.

Sorry OP :/

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 16:51:45 GMT

MrsCHX,

That seems to be the case. I called the backdoor "customer relations" number and had a pointless conversation with them. She said it looks to them like fraud when they see multiple inquiries. I told her that the only reason I have so many (15) is because I had to buy 2 cars in the last year (one was totalled in a wreck, so I had to replace it) and I didn't realize at the time that the dealership applies to 7 or 8 banks to find the best deal... I said I can verify that there was no fraud. She put me on hold and came back and said the new reason is "too many new accounts". She said that they review new accts AFTER they are approved. I get it if that's their UW criteria, but IMO they should not approve people that they don't want as customers. It's my fault for using the SCT too many times. I hope it doesn't lead to AA with other banks.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 17:35:43 GMT

That sounds off-kilter to me too. I wonder if they might give other people in the same situation who call them a similar runaround before finally admitting that the real reason they shut them down is too many new accounts. I'm rather glad now that 90% of the stores in the SCT basket don't sell things I'm interested in, so that I was never seriously tempted...honestly, the only two Comenity cards I'm seriously interested in are Paypal Credit and Overstock, and I'd probably pick Paypal over Overstock if I were told to choose. Same deal for Synchrony; I was interested in Care Credit for a while until I heard all the complaints about it, so now the only other Sync card I'd really consider aside from Amazon (which I already have) is Walmart, because I shop there at least once a month and often more.

Re: Comenity closed all my accounts

AverageJoesCredit — Tue, 18 Apr 2017 17:57:17 GMT

This is one of my biggest credit pet peeves in the credit world when a creditor approves someone and shut them down even before they recieve their card. At least this happened before you were knee deep into big credit lines with them. Its come to that point if i see Comenity as the card issuer , ill be like ok, dont need it. Not a great way to inspire consumer affection

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 18:02:54 GMT

This just happened to me. I got SCT for Sportsman Guide Visa and Coldwater Creek. I received both cards went to use Sportsman Visa, declined. Called CS and told it was a computer error and he had seen it before that day. He said he saw no reason why account closed. Yesterday I received two letters from Comenity stating accounts closed due to to many recent inquiries. Yes, guilty of that but it is really stupid to approve an account, allow a charge, send cards, and while doing this close account. I knew Comenity was crazy but this is beyond that. Time to re-evaluate Comenity and close some accounts I don't use. And for me, no more yes to SCT offers, I'll just pay the way I planned to avoid the headaches with Comenity.

Re: Comenity closed all my accounts

Anonymous — Tue, 18 Apr 2017 18:19:22 GMT

The only "workaround" I've found is if I get a pop up and really want the card (chances are low that I do), I just ignore the pop up and do a normal application separately without the preapproval.

I was approved for one, declined for the other (both had a preapproval) but my open one wasn't shut down because of my decline which listed only "inquiries." Hope I explained that correctly.

Re: Comenity closed all my accounts

Uh — Tue, 18 Apr 2017 21:01:24 GMT

It seems surprising they didn't review the account before letting the first charge go through... and it's beyond frustrating they shut down all of your accounts by reviewing the newest one!

Since "She said that they review new accts AFTER they are approved" maybe Comenity is only getting kick backs for NEW accounts - regardless of the new accounts having a lifespan of only a month (give or take). From a business perspective in the interests of the stores that are co-branding through Comenity it would seem there should be some tweeking to the agreement between Comenity & themselves to offer structured bonuses that would encourage REPEAT use of store cards, and retaining customers versus causing frustration.

The irony if there is any in your case is that they may invite you to apply again - as seen in so many other threads here. The operation for your pooch could be put on yet another Comenity cobranded Visa... insanity.

So sorry this ridiculous bank behavior affected you, yet thank you for posting to let us all know. I'm expecting the same treatment here for 2 visas opened through them. I've sockdrawered them for now, while I wait for the 'closed' letter for either one of them to come.

Re: Comenity closed all my accounts

HeavenOhio — Wed, 19 Apr 2017 09:26:49 GMT

Approving an app, accepting a charge, then immediately closing the card is unacceptable. As others have said, don't approve in the first place.

I'd return the merchandise, let the merchant know that this is an unacceptable way to do business, and tell them that I'm done as a customer. If enough people were to do this, maybe the merchants would put some pressure on the lenders to implement practices that are fair and sane. Or maybe they'd switch to a different lender.

Plus, I think it'd be fun to return the purchased items and watch the merchant try to figure out how to handle the refund.

Re: Comenity closed all my accounts

Anonymous — Wed, 19 Apr 2017 12:25:38 GMT

This sucks. My SO had the same thing happen with AKC visa.
Sorry this happened.

That being said I think Joe is right on the SCT being numbered. I have been posting about Comenfity and Synch cards lately and usually it is when people have more than one card or they have huge CL's. Not right, if you are approved you should ge approced. But... that seems to be the way they roll. I'd be screaming to get that $55 waived and the HP removed.
I love my Ebates card and use it so much. Because of hat over the last few months I have closed all my Synch cards but that one. Granted I only had 3 so I closed 2 but I am so weary with how both Synch and Comenity act lately I wanted to do what I could do try to limit my chances of them closing that card.
It's not even like Amex or another lender who wants your business but wants to cover themselves. They could ask for income proof or ID, but they don't even give you an option to keep it.
I know Comenity and Synch are cards many use to get started but as a rule I would tell any newbies to keep your exposure to one or maybe 2 cards on those 2 lenders.

Op... again. I am sorry this happened. It's sucks but NFCU is a WAY better lender to do business with. gL.

Re: Comenity closed all my accounts

Anonymous — Wed, 19 Apr 2017 12:35:15 GMT

What's particularly striking about this latest instance is that the OP only had three Comenity cards, and none of them had a really big CL. That's a distinct change from most other reports I've seen on the issue, where the person in question had a large number of Synchrony/Comenity cards and many if not all of those cards had very high CL's. As I've been saying, that's a pretty good indication to me that Comenity is fixing to crack down on the SCT - maybe not immediately or very soon, but it definitely seems to be coming along. This makes me wary of applying for any Comenity cards (though the only ones I'm significantly interested in are Paypal Credit and Overstock, and between the two I'd choose Paypal Credit since I use Paypal fairly frequently and have been buying more things off eBay in recent months) or Synchrony cards (up to now, the only one I'd been really interested in was Walmart store, but I found out in another thread this morning that the Marvel MC has 2% cash back on several shopping categories I purchase regularly, particularly bookstores - I'm quite the bibilophile!). As I'm gardening for the next 4-5 months or so, I'm content to sit back and watch how this all shakes out before applying for anything else, particularly anything from those two lenders.

Re: Comenity closed all my accounts

MrsCHX — Wed, 19 Apr 2017 14:05:54 GMT

@Anonymous wrote:
What's particularly striking about this latest instance is that the OP only had three Comenity cards, and none of them had a really big CL. That's a distinct change from most other reports I've seen on the issue, where the person in question had a large number of Synchrony/Comenity cards and many if not all of those cards had very high CL's.

I think this type of AA from Comenity has been happening with people who open multiple cards on the same day. Vs having "a lot" of Comenity accounts. And SCT rarely yields really big starting limits...

Re: Comenity closed all my accounts

grillandwinemaster — Wed, 19 Apr 2017 15:15:18 GMT

@Anonymous wrote:
@Anonymous wrote:
Overstock - $3500
Williams sonoma - $700
Jcrew - $300
Those were all opening CL's. I opened these store cards all together a couple months ago, SCT. I'm sure that the multiple new accounts spooked them. I just don't like the way the shut everything down with no dialogue. They obviously don't have to approve anyone for anything, but once they have paying customers on board I think there should be some level of customer service.

I suspect you're right, which just backs up my hunch that Comenity may be fixing to lower the boom on the SCT in the not-so-distant future.

It wouldn't be a bad thing in my opinion, if the SCT went away. Often times, it causes more harm than good to good intentioned rebuilders. Just my 2cents!

I'm sorry this is happening to you OP. But, there are bigger and better fish out there for you to fry!

Best Credit Wishes to You!

Re: Comenity closed all my accounts

Anonymous — Wed, 19 Apr 2017 16:14:04 GMT

There was a thread a couple of months ago that people who had store cards then got a Visa card had issues. One member suggested either stick to all store cards or the Visa ones.

Re: Comenity closed all my accounts

Anonymous — Wed, 19 Apr 2017 16:27:32 GMT

@Anonymous wrote:
There was a thread a couple of months ago that people who had store cards then got a Visa card had issues. One member suggested either stick to all store cards or the Visa ones.

Odd. On previous occasions, I had store cards (Radio Shack, then Best Buy) alongside Visas and never had a problem. Of course, that was years ago and I imagine some things will have changed.