topic Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit in Credit Cards

COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

djmax041 — Mon, 23 Nov 2020 23:26:36 GMT

Got a notifiaction from credit monitoring Saturday saying my account closed. Logged on to account showed that 30k limit and showing 0 available.

I called Sunday and the automation stated account closed no information available Goodbye.

I called today and was told my account was closed for inactivity. Ive had the card for 5 years and a 30k limit. I was actually planning on buying something this week but now I cant.

I found out that they closed the card on October 26th. The 1st rep says they have a week period where they can reinstate you when they close the account but I didnt even know they closed it. The Supervisor told me they dont give a notice they just close it. They cant reinstate it and the only way to get the account back is to re-apply. When you re-apply you lose the history and no guarantee of geting the amount of Credit Limit you had before.

So beware. if you have this card. Use it or they will cancel without warning this was my highest card because I used the CLI with soft pulls for years until they had hard pulls. The last time I used it was Septemeber 2019.

My current credit is EQ 816 TU 821 EX 808

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

FinStar — Tue, 24 Nov 2020 00:42:56 GMT

There's been definitely quite a few threads, not just about Comenity, but Citi Retail and other lenders who have yielded similar closures. Not long ago, a poster (like yourself) anticipated on using their [Citi Retail] Best Buy CC learned it was closed after not being used for over a year.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

djmax041 — Tue, 24 Nov 2020 02:46:06 GMT

It just leaves a bad taste in my mouth. No email or notification. This year I didn't use my chase slate and chase sent me a letter and email stating to use my card within 30 days or lose it. That gives you a chance at least. I wouldn't have mind if they lowered my cl but to close a 5 yr old card that I was always paying on time. This will decrease my scores it sucks because I was gonna use it this week. I guess they only people that they can make money off of. Overstock isn't gonna get a dime from me because of this as well as any other comenity cards

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Remedios — Tue, 24 Nov 2020 02:53:32 GMT

@djmax041 you didn't use it in over a year.

They didn't send you notice card would be closed, but in all fairness, you didn't send them the notice of intent to use the card.

$30K is a lot. They will turn around and lend it to someone who's going to use it, and if they don't, theirs will get shut, too.

Lender notifying consumer about impending closure is an exception, not the norm.

Considering times we live in, lenders are by far less likely to play utilization games because they have to keep money in reserves while SL sits idly.

It's not pleasant, it's not fun, I'm sorry it happened to you, but this is one common story. You can probably find several threads on the last 15 pages dealing with closures for inactivity.

It's a business after all, and if cards were physical stores, would owner keep it open if not a single customer walked in for 13 months...they wouldn't.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

djmax041 — Tue, 24 Nov 2020 05:27:07 GMT

Well I just don't buy stuff just to buy it. That's the only reason why it wasn't used. I wouldn't suggest anyone just spend frivolously especially at this time. I was planning on using it this weekend when I found out. I use it once a year for a big purchase and take advantage of their 6 months no interests. Now I'll just focus on my PayPal better terms and not restricted to one store.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Slabenstein — Tue, 24 Nov 2020 05:46:35 GMT

@djmax041 wrote:
Well I just don't buy stuff just to buy it. That's the only reason why it wasn't used. I wouldn't suggest anyone just spend frivolously especially at this time. I was planning on using it this weekend when I found out. I use it once a year for a big purchase and take advantage of their 6 months no interests. Now I'll just focus on my PayPal better terms and not restricted to one store.

That's kind of the catch-22 with store cards for places you don't shop at semi-frequently: you probably should at least put maintenance swipes on it if you want to make sure it stays alive, but if there's not anything at that store that you're going to buy right now you're not going to put a swipe on it.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

AverageJoesCredit — Tue, 24 Nov 2020 11:26:52 GMT

@Slabenstein wrote:
@djmax041 wrote:
Well I just don't buy stuff just to buy it. That's the only reason why it wasn't used. I wouldn't suggest anyone just spend frivolously especially at this time. I was planning on using it this weekend when I found out. I use it once a year for a big purchase and take advantage of their 6 months no interests. Now I'll just focus on my PayPal better terms and not restricted to one store.
That's kind of the catch-22 with store cards for places you don't shop at semi-frequently: you probably should at least put maintenance swipes on it if you want to make sure it stays alive, but if there's not anything at that store that you're going to buy right now you're not going to put a swipe on it.

There's really no difference in having a 30k retail card or bank card if you arent going to use it ir at least put usage, just ask Capitol One. Any card can be closed for nonuse and if a lender feels a cards limit is not being fully utilized, they can/ will close or reduce on a whim, though to be fair their whim probably has some merit in many cases

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

FalconSteve — Tue, 24 Nov 2020 14:14:05 GMT

@Remedios wrote:
@djmax041 you didn't use it in over a year.
They didn't send you notice card would be closed, but in all fairness, you didn't send them the notice of intent to use the card.
$30K is a lot. They will turn around and lend it to someone who's going to use it, and if they don't, theirs will get shut, too.
Lender notifying consumer about impending closure is an exception, not the norm.
Considering times we live in, lenders are by far less likely to play utilization games because they have to keep money in reserves while SL sits idly.

It's not pleasant, it's not fun, I'm sorry it happened to you, but this is one common story. You can probably find several threads on the last 15 pages dealing with closures for inactivity.
It's a business after all, and if cards were physical stores, would owner keep it open if not a single customer walked in for 13 months...they wouldn't.

All true, but they should have notified her once it was closed, otherwise, what is the point of the 7 day grace period?

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Remedios — Tue, 24 Nov 2020 14:48:05 GMT

They might have sent a letter, or one might still come.

7 days is not "grace period for reinstatement", it's just the time period during which it might be possible according to CSR.

I haven't read about many successful Comenity reinstatements, so if that's a possibility, it's used sparingly.

Unfortunately, there is nothing unusual here. Most consumers find out about card closures when they attempt to use the card or via CMS.

Somewhere is T&C there is that "We can close the card at any time, for any reason" which really means "Card is ours, only thing that's yours is statement balance"

That's one of the reasons I cringe when Wallet Galery is referred to as *Portfolio*

It's not.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Brian_Earl_Spilner — Tue, 24 Nov 2020 14:58:58 GMT

In all fairness, it sounds like you didn't need it other than for utilization padding and the occasional promo period. The promo can be offset by other cards. Nothing you can do about padding unless you get another padding friendly card, but lenders have caught on to that trick citing individual utilization for denials recently.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

djmax041 — Tue, 24 Nov 2020 16:00:53 GMT

Exactly! They didnt give any notification so theres no point of saying theres a 7 day reinstatement process

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

CreditMagic7 — Tue, 24 Nov 2020 16:07:24 GMT

Even if OP was using it for high limit padding as plenty members do, you simply cannot leave card accounts especially at that level laying dormant for any length of time and not expect it to be on their list of closures, and without warning. Some lenders give a heads up then again there those who don't.

I think the days of SD cards in this current uncertain environment is a thing of the past where lenders are now reigning those unused cards back into their available lendings books and auditing much more closer than ever before.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

djmax041 — Tue, 24 Nov 2020 16:08:18 GMT

I still have 120k in across other accounts. Other than Lowes Overstock was my only store cards. Other Cards are all bank credit cards.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

sxa001 — Tue, 24 Nov 2020 17:45:06 GMT

Comenity is one of the banks that does send notices, I know they sent me one earlier this year with my Blue Nile card. It is good to know that they don't for all cards and just a general reminder to make sure you get your swipes in if you want to keep the card open.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Anonymous — Wed, 27 Jan 2021 10:34:03 GMT

Overstock just closed my account as well with no warning. I made a purchase the 2nd week of January, then 1/19/2021 account closed. My limit was $14,950, I have been a cardholder over 5 years, never missed a payment or carried a balance. I'm waiting to get the letter in the mail to give me an idea as to why as the CSR's I spoke with were not the brightest. I'm wondering if there's anything that can be done? I liked my Overstock card. My total utilization across all cards is 7% so I'm really confused. I did open a couple cards while Christmas shopping for the extra 30% savings. However, if that was the issue this would have happened at some point previously, no? This has never happened to me before and now I'm paranoid that Commenity will close my Victoria's Secret card too.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

barca — Wed, 27 Jan 2021 13:15:24 GMT

@Anonymous wrote:
Overstock just closed my account as well with no warning. I made a purchase the 2nd week of January, then 1/19/2021 account closed. My limit was $14,950, I have been a cardholder over 5 years, never missed a payment or carried a balance. I'm waiting to get the letter in the mail to give me an idea as to why as the CSR's I spoke with were not the brightest. I'm wondering if there's anything that can be done? I liked my Overstock card. My total utilization across all cards is 7% so I'm really confused. I did open a couple cards while Christmas shopping for the extra 30% savings. However, if that was the issue this would have happened at some point previously, no? This has never happened to me before and now I'm paranoid that Commenity will close my Victoria's Secret card too.

Yea , watch out banks are coming after you guys that have insane amount of credit card.

the fact that OP has a card he did not use for 1 year most likely means he has a lot of CC and managing all those accounts was an issue.

the machine learning algorithm will probably scan accounts monthly or quarterly---

which is when he notices you opened multiple accounts in December and you probably already have many CC before then .and flags you.

i don't get it--

if you need to open new accounts, why don't you close some older ones.

'before it gets to the point you are trying to keep some cards alive by using it every six months

moreover, you don't lose the age factor for the next 10 years

personally , I have a total of 3 CC, all in my wallet. How can I ever forget to use one .

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Remedios — Wed, 27 Jan 2021 16:44:17 GMT

@barca are you saying your needs are identical to everyone else's?

This is the second post today where you are questioning why some people have more than three cards, I'm not even going to mention previous ones.

It's different for everyone, sometimes it's a want, and sometimes it's a need.

Easy answer ( and a low hanging fruit) it's because when something like this happens, those with sufficient credit hardly feel it. They might lose some benefits, but overall credit remains in good shape.

While what you have in terms of credit is good enough for you, and you're happy, that doesn't mean that it will work for everyone. In your particular case, loss of BoA account would be a tragedy since that's the basket in which you've put majority of your eggs.

No one is questioning your motives on why you only have three cards. There is no " I don't get this three card thing", so perhaps giving others same courtesy is in order.

Instead of homogenizing the entire community, it would probably be more productive for you to gear that question towards an individual instead of "y'all"

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

barca — Wed, 27 Jan 2021 15:15:48 GMT

@RemediosI never implied people should have 3 cards.

I am just trying to preach moderation.

I use to have about 15 cards before the financial crisis hit me in 2009/2010.

if you have 20 years credit history and have over 30 cards , perfectly fine.

but what should not be encouraged is someone having 4 year credit history and having 30 cards .

have you not noticed that most people that have their accounts closed is indirectly because they have large number of cards

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

Anonymous — Wed, 27 Jan 2021 15:34:43 GMT

@barca wrote:
@RemediosI never implied people should have 3 cards.

I am just trying to preach moderation.

I use to have about 15 cards before the financial crisis hit me in 2009/2010.

if you have 20 years credit history and have over 30 cards , perfectly fine.

but what should not be encouraged is someone having 4 year credit history and having 30 cards .

have you not noticed that most people that have their accounts closed is indirectly because they have large number of cards

Moderation is a) subjective, and b) just your belief!

Some people have no problem working with 30 cards, regardless of length of credit history. For some, where spending is in line with funds, putting all cards on auto-pay Full balance makes it very little work. Yes, from time to time you may have cards close for inactivity if you don't deliberately put some spend, but with lots of cards that's not a big issue (and it's harder to believe that closing a rarely used card is a tragedy).

I agree some people here overdo it in that they cannot manage, but some people get into trouble with just one card, so it's an individual thing and "preaching moderation" isn't that useful.

Re: COMENITY CAPITAL BANK (Overstock) Account Closed No Explanation 30k Limit

djmax041 — Wed, 27 Jan 2021 15:36:41 GMT

@barca I have about 14 ccs over the course of 7 yrs not alot. My credit is still great sitting at 826 821 and 830 across fico

I just dont close cards just cause. Its never a reason to close a card unless u dont want to pay the annual fee. Thats why I dont have cards with annual fees. It sucks, I was planning on using the week after they closed I didnt get notification or nothing. I simply went to login to overstock and couldnt use my card when it was time to purchase. The fact remains that they say they give you notification and they dont and also the 7 day reinstatement is simply not true. Its almost like the customer service reps dont know their own policy or they just want to get you off the phone. Nothing personally against them, but being told one thing and then hearing another is never good.