topic Re: Strange Comenity Bank CLD!!! in Credit Cards

Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 00:51:46 GMT

So I have 5 accounts with Comenity Bank. They are as follows:

Eddie Bauer: $3500

Overstock.com: $5200

Petland: $6800.00

The Children's Place: $2100

Williams-Sonoma Visa: $7000

I use all of these cards on a very regular basis as I shop at all five store prob. monthly. I never cary a balance and I always pay in full each month. My credit score has not changed (750ish), and I have no missed payments or anything. I have had these five accounts for several years. I received a notification from Experian today that said I had a credit line decrease reflected on my credit report. I logged in to look to see what was going on and I had 5 CLD!!! My new limits are as follows:

Eddie Bauer: $100

Overstock.com: $250

Petland: $100

The Children's Place: $250

Williams-Sonoma Visa: $500

I called Comenity Bank to find out what was going on and received the same answer every time. We have mailed out a letter explaining the details. That was all I could get out of them and they refused to restore my credit lines or provide any kind of increase. Has anyone had this happen to them recently? If so what was the reason that Comenity Bank gave? At these limits I can not really see any reason in keeping the accounts open because anything charged will just damage my credit. If I charge nothing and just let them sit Comentity will close the accounts due to inactivity, and if I close them it will really lower my average age of accounts. Any information or advise is appreciated!

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 00:56:40 GMT

Closing a card won't affect your AAoA until the account falls off your report which is typically 10 years.

Do you have many recent inquiries? Higher UTI on other cards? Other new accounts? If so, how many? I want this letter now!

Re: Strange Comenity Bank CLD!!!

FinStar — Wed, 13 Feb 2019 01:03:01 GMT

Besides the above Comenity accounts, what other tradelines do you have? How's your overall utilization? (excluding Comenity). Have you had any recent credit profile changes, such as a mortgage, vehicle loan, student loans, etc., added on your CRAs? Any new accounts in the last 6 months?

Hopefully the letter you receive can yield more information. The type of adverse action you experienced usually occurs as a result of changes with an individual's credit profile or if any accounts have a prolonged period of inactivity.

If you leave the accounts unused, they will be eventually closed (at some point) for inactivity. If you decide to close them (your choice of course) it shouldn't affect your AAoA since any closed accounts usually remain on CRAs for up to ~10 years.

I'd be curious to know what the letters say.

Re: Strange Comenity Bank CLD!!!

Remedios — Wed, 13 Feb 2019 01:10:11 GMT

Was Williams-Sonoma Visa issued last?

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 01:10:22 GMT

I have no high utilization on any other accounts. My utilization across the board is around 3%. I have not opened any new credit cards within the last year. I have 5 inquires within the last 30 days, however, it is where I purchased a new vehicle. Ended up financing through my credit union. Car note of $525 a month on a new Land Rover. No more then my previous car note. So not really any change in my DTI.

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 01:11:53 GMT

No...that was transfered over to Comenity Bank from Barclay's I believe was who had it before? I have had that card for 10+ years.

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 01:20:10 GMT

I have:

AMEX Delta: $6000

Barclay's American Airlines: $8500

Discover NHL card: $12500

Credit Union credit card (Baxter CU): $25000

Credit Union LOC (Baxter CU): $15000

Lowes CC: $40000

Chase IHG: $11000

Utilization is around 3% across the board. I usually pay in full each month. The 3% is on the American Airlines card b/c they had a 12 month no interest promo I took for airline tickets. 5 recent inq. from the purchase of a new land rover. Payment is $525. Previous vehicle was recently paid off and the payment was close to the same. So no change in DTI. Vehicle loan is the only new account within the last year. No inactivity on the Comenity accounts. I use them monthly. With the 5 inq. my score dropped like 4 points? I am still in the 750ish range.

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 01:20:55 GMT

Well you said that you use the cards almost monthly so the inactivity reason is out. The new accounts and high UTI reasons are out. The only thing left is those 5 inquiries in the last 30 days from car shopping. Please make sure to report back as soon as you get that letter.

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 01:23:48 GMT

Yeah I will. I would imagine that I will get a letter in the mail any day since it has already been reported to the CRA. Hopefully some time this week.

Re: Strange Comenity Bank CLD!!!

UpperNwGuy — Wed, 13 Feb 2019 02:00:20 GMT

Maybe it's time for you to move on from Comenity to one or two of the better banks.

Re: Strange Comenity Bank CLD!!!

FinStar — Wed, 13 Feb 2019 16:46:31 GMT

@Anonymous wrote:
Yeah I will. I would imagine that I will get a letter in the mail any day since it has already been reported to the CRA. Hopefully some time this week.

Please report back once you receive the letter from them. Potentially, just a bump on the road, but it's possible those accounts can eventually get a CLI in 6 months or so from now once the dust settles.

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 16:58:02 GMT

That is messed up! I just checked my four Comenity cards and all are well at this time. I rarely use the store cards (A&F, Buckle, & Express) and the Sportsmans Guide Visa is seldom used. I just began using it for Netflix and Hulu.

Hope this works out for you.

Re: Strange Comenity Bank CLD!!!

kdm31091 — Wed, 13 Feb 2019 17:08:33 GMT

Although the letter may provide insight, in most (if not all) cases with Comenity, they don't reverse the decision once they do this type of thing. Unfortunately this is not uncommon with people with several Comenity cards. See what the letter says, but likely your only recourse is going to be living with the reduced limits or just closing the accounts (or letting them go inactive). As mentioned above you may be able to get a CLI months down the road. With some lenders, when this type of thing occurs, you can fight it, but haven''t heard much success with Comenity.

Re: Strange Comenity Bank CLD!!!

Anonymous — Wed, 13 Feb 2019 17:17:09 GMT

I had a similar Comenity experience. My VS card is with them, I got a notification that my CL had dropped from 2500 to 100. No changes to credit, utilization, derogatory marks, etc. When I got the letter it said “no usable real estate accounts”...... interesting because I was 18 when I got the card and definitely had no real estate accounts on my bureaus lol. Anywho, I called and spoke with a supervisor with whom I plead my case and he also agreed that the letter made no sense. Within minutes he reinstated my credit limit back to the full amount and I’ve had no issues since. It may be worth while to wait for that letter so you have it to reference if/when you call.

Re: Strange Comenity Bank CLD!!!

Anonymous — Thu, 14 Feb 2019 19:22:14 GMT

Got the letter in the mail yesterday. It advised that my credit line(s) were decreased due to excessive inquiries. I called in and asked to speak with a manager. The manager asked "Why I was so actively seeking credit when I have ample credit available?". I advised that I have a total of 7 inquiries on my credit file and 5 are recent from where I purchased a new car. I advised if they took a look they would see the inquiries were all on the same day from different automobile lenders and that there was a new auto trade line reflected within 30 days. The manager then told me that was "excessive inquiries" and that "the credit bureau provided the information". I asked if they could restore my credit to the original limts and was told "No. That my accounts would be reviewed periodically for a credit increase. If it happens you will be notified on your statement that you have received an increase". This is just crazy that a bank would think that 7 inquiries is extremely excessive espically when five are in the same day from an auto lender. I guess this bank is having financial troubles and does not want to keep customers. Oh well. I had them close down all 5 of my accounts. I wanted to get something to replace the Williams Sonoma VISA. So I went with somewhere else I shop all the time. Applied for the REI Mastercard (Believe it's issued through US Bank?). Was approved for $9000. Think I will just avoid comenity bank from here on out!

Re: Strange Comenity Bank CLD!!!

HeavenOhio — Thu, 14 Feb 2019 19:33:32 GMT

I'd stop shopping at the five places where you had these cards. If they're going to affiliate with a bank that makes decisions like this, they don't deserve your business.

When we see a thread like this, we can usually pinpoint something the OP did that was "wrong." Not in this case, though.

Re: Strange Comenity Bank CLD!!!

Anonymous — Thu, 14 Feb 2019 19:44:08 GMT

Wow? This is certainly the first bank/experience I've seen that takes automobile inquiries into consideration for something of this nature. Especially even after explaining. I'm sorry to hear

Re: Strange Comenity Bank CLD!!!

Anonymous — Thu, 14 Feb 2019 19:44:24 GMT

Sorry to hear op, I know it’s very disappointing.

Just remember, the retailers had nothing to do with Comenity’s action. If anything, they want your limits to stay intact bc they want your business.

Re: Strange Comenity Bank CLD!!!

HeavenOhio — Thu, 14 Feb 2019 19:48:44 GMT

The retailers have nothing to do with the AA (adverse action). But they're the ones that choose to affiliate with banks that do this.

A credit card is supposed to make shopping at a particular store more attractive. This advantage is now gone.

Re: Strange Comenity Bank CLD!!!

FinStar — Thu, 14 Feb 2019 22:27:04 GMT

Well, the advantage isn't necessarily gone per se since these particular establishments (or any for that matter) still take other major CCs aside from their own retail versions. The retail versions, while nice in the sense of loyalty rewards, coupons, etc., also come with astronomical APRs and/or limited acceptance. Some retail loyalty programs are also offered to non-retail cardholders as well. Plus, one could still earn cashback or other forms of rewards (insert your favorite card here) by using other payment methods and still come close or ahead.

Boycotting the stores for the sake of principle of Comenity's AA isn't really going to hit their bottom line. This is simply like hitting a battleship with a pebble.