topic Re: Unbelievable UBS Termination in Credit Cards

Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:03:44 GMT

Well they say the things that are too good to be true, usually are... and is seems as though my time at UBS has abruptly come to a close. Account Terminated by Risk due to insufficient credit length, please pay account full balance by the 21st was the discussion I had with their advisor over the phone. What a joke, thats not an explination. Couldnt argue with them or make them reverse course. Has anyone ever heard of this? Not sure if I have rights or not. Obviosly I want to keep the account current when they close it on my credit profile, and he said they would do that. Is that enough of an assurance?

Re: Unbelievable UBS Termination

Anonymous — Thu, 14 Jan 2021 23:06:17 GMT

Have you been using it heavily or something to grab their attention? I mean they have the right to close accounts at any time for any reason like any creditor unfortunately.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:08:35 GMT

@Anonymous wrote:
Have you been using it heavily or something to grab their attention? I mean they have the right to close accounts at any time for any reason like any creditor unfortunately.

Havent been using it too much, but put a large business purchase on it and then have been paying it off for the last 2 months. Nothing near the limit but say 50k.

Re: Unbelievable UBS Termination

Anonymous — Thu, 14 Jan 2021 23:11:15 GMT

I mean it sounds like they just gave you that massive limit and expected you not to use it. Seems kind of weird to me but being a foreign bank I'm not surprised they are nervous right now. The US economy is hanging on because of stimulus actions, it's going to be a disaster when that eventually ends.

The only thing I'm not sure on, I didn't think they could demand immediate repayment unless you breached the contract with them somehow. Maybe someone else can chime in on that.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:13:04 GMT

Thats what I would think. I didnt breech anything with them, so and unsure about that. But he used some veiled threat that he didnt want this to go any hire then him.

@Anonymous wrote:
I mean it sounds like they just gave you that massive limit and expected you not to use it. Seems kind of weird to me but being a foreign bank I'm not surprised they are nervous right now. The US economy is hanging on because of stimulus actions, it's going to be a disaster when that eventually ends.

The only thing I'm not sure on, I didn't think they could demand immediate repayment unless you breached the contract with them somehow. Maybe someone else can chime in on that.

Re: Unbelievable UBS Termination

sxa001 — Thu, 14 Jan 2021 23:14:09 GMT

That really sucks to see such a huge CL just go away like that. How long did it take to get the CL to that size? I can imagine any lenders with that much of a credit line open for someone is going to be very particular right now, what might have been acceptable pre COVID isn't going to be today. Underwriting standards have changed. I don't know your income/assets and maybe your spend and profile made sense to have that kind of a limit but compared with the other cards you have if they were just doing a random review it could stand out to someone in the underwriting department.

Re: Unbelievable UBS Termination

Anonymous — Thu, 14 Jan 2021 23:14:37 GMT

Is this considered a business or personal account? If it's a personal account, there are consumer protection laws that come into play when a lender tries to bully you but if they're considering it a business account, I'm totally unclear about what regulations exist.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:15:49 GMT

Just applied and thats the credit limit I received. Had to prove income with form 405-T.

@sxa001 wrote:
That really sucks to see such a huge CL just go away like that. How long did it take to get the CL to that size? I can imagine any lenders with that much of a credit line open for someone is going to be very particular right now, what might have been acceptable pre COVID isn't going to be today. Underwriting standards have changed. I don't know your income/assets and maybe your spend and profile made sense to have that kind of a limit but compared with the other cards you have if they were just doing a random review it could stand out to someone in the underwriting department.

Re: Unbelievable UBS Termination

wasCB14 — Thu, 14 Jan 2021 23:16:47 GMT

While people don't often discover it $286,500 of credit at a time, the risk-reducing staff at a bank can sometimes follow criteria for AA that conflict with the approval and CLI-granting criteria.

They may have been concerned you couldn't pay $50k off at once. I once got a supposedly-unrelated (yeah, right) call from Amex 3 or 4 days before I had a $27k minimum payment due.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:20:54 GMT

@wasCB14 wrote:
While people don't often discover it $286,500 of credit at a time, the risk-reducing staff at a bank can sometimes follow criteria for AA that conflict with the approval and CLI-granting criteria.

They may have been concerned you couldn't pay $50k off at once. I once got a supposedly-unrelated (yeah, right) call from Amex 3 or 4 days before I had a $27k minimum payment due.

I pay all my other cards off in full like Amex, I kept a balance on this one because my business partner was concerned if we paid it off with non profits from the business it would make it hard for our accountant to track. Not sure though. often have 25k min payments of charge cards, just sad to see this magical bird fly away.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:22:01 GMT

@Anonymous wrote:
Is this considered a business or personal account? If it's a personal account, there are consumer protection laws that come into play when a lender tries to bully you but if they're considering it a business account, I'm totally unclear about what regulations exist.

Its a consumer account. Personally opened.

Re: Unbelievable UBS Termination

Remedios — Thu, 14 Jan 2021 23:24:52 GMT

If you close the account, you preserve terms. Pay by date blah blah blah is somewhat intimidation tactic.

You didn't default, and unless you do, it's not reportable.

You still have to be late for them to report you as late.

As far as everything else, why don't you escalate it yourself?

Just go higher up and let them know intimidation tactics are still illegal.

Most likely, whomever you talked to is tasked with your account and wants if off their desk.

Re: Unbelievable UBS Termination

Anonymous — Thu, 14 Jan 2021 23:26:14 GMT

@californiaboy935 wrote:
@Anonymous wrote:
Is this considered a business or personal account? If it's a personal account, there are consumer protection laws that come into play when a lender tries to bully you but if they're considering it a business account, I'm totally unclear about what regulations exist.
Its a consumer account. Personally opened.

I'm pretty sure they can't demand payment in full when you haven't breached the terms of the agreement. If they're terminating their relationship with you, your card terms are supposed to remain exactly the same as they were before the closure until you pay it off. Keep in mind though, they're not required to report your credit limit so if they choose to report the limit as $0, your scores are going to crash from a maxed out credit card.

Re: Unbelievable UBS Termination

wasCB14 — Thu, 14 Jan 2021 23:27:56 GMT

Is there a particular UBS employee who depends on customers like you for an income? Some business banker or stock broker? He or she may be able to help get the attention of someone senior.

Re: Unbelievable UBS Termination

FinStar — Thu, 14 Jan 2021 23:30:08 GMT

@californiaboy935 wrote:
Well they say the things that are too good to be true, usually are... and is seems as though my time at UBS has abruptly come to a close. Account Terminated by Risk due to insufficient credit length, please pay account full balance by the 21st was the discussion I had with their advisor over the phone. What a joke, thats not an explination. Couldnt argue with them or make them reverse course. Has anyone ever heard of this? Not sure if I have rights or not. Obviosly I want to keep the account current when they close it on my credit profile, and he said they would do that. Is that enough of an assurance?

Sorry to hear about the UBS closure. Unfortunately, there's not much that can be done to have them reinstate the account. When it comes to terminating accounts due to risk-related factors, it means the account has been monitored for quite some time, and let's face it, it's a fairly sizeable exposure on a single card.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:33:14 GMT

@FinStar wrote:
@californiaboy935 wrote:
Well they say the things that are too good to be true, usually are... and is seems as though my time at UBS has abruptly come to a close. Account Terminated by Risk due to insufficient credit length, please pay account full balance by the 21st was the discussion I had with their advisor over the phone. What a joke, thats not an explination. Couldnt argue with them or make them reverse course. Has anyone ever heard of this? Not sure if I have rights or not. Obviosly I want to keep the account current when they close it on my credit profile, and he said they would do that. Is that enough of an assurance?
Sorry to hear about the UBS closure. Unfortunately, there's not much that can be done to have them reinstate the account. When it comes to terminating accounts due to risk-related factors, it means the account has been monitored for quite some time, and let's face it, it's a fairly sizeable exposure on a single card.

Pretty crazy, just not a call I expected to get. Plus I have a sizable rewards point balance with them, doubt i'll get that.

Re: Unbelievable UBS Termination

Credit12Fico — Thu, 14 Jan 2021 23:36:43 GMT

@californiaboy935 wrote:
@FinStar wrote:
@californiaboy935 wrote:
Well they say the things that are too good to be true, usually are... and is seems as though my time at UBS has abruptly come to a close. Account Terminated by Risk due to insufficient credit length, please pay account full balance by the 21st was the discussion I had with their advisor over the phone. What a joke, thats not an explination. Couldnt argue with them or make them reverse course. Has anyone ever heard of this? Not sure if I have rights or not. Obviosly I want to keep the account current when they close it on my credit profile, and he said they would do that. Is that enough of an assurance?
Sorry to hear about the UBS closure. Unfortunately, there's not much that can be done to have them reinstate the account. When it comes to terminating accounts due to risk-related factors, it means the account has been monitored for quite some time, and let's face it, it's a fairly sizeable exposure on a single card.
Pretty crazy, just not a call I expected to get. Plus I have a sizable rewards point balance with them, doubt i'll get that.

Try to get them to pay out the rewards. If they won't play ball, then submit an inquiry with the Consumer Financial Protection Bureau to get them to pay out the rewards balance.

Re: Unbelievable UBS Termination

Remedios — Thu, 14 Jan 2021 23:40:06 GMT

@Anonymous wrote:
@californiaboy935 wrote:
@Anonymous wrote:
Is this considered a business or personal account? If it's a personal account, there are consumer protection laws that come into play when a lender tries to bully you but if they're considering it a business account, I'm totally unclear about what regulations exist.
Its a consumer account. Personally opened.
I'm pretty sure they can't demand payment in full when you haven't breached the terms of the agreement. If they're terminating their relationship with you, your card terms are supposed to remain exactly the same as they were before the closure until you pay it off. Keep in mind though, they're not required to report your credit limit so if they choose to report the limit as $0, your scores are going to crash from a maxed out credit card.

If they are reporting, it must be accurate.

Since card has had a limit, it must be reported. Post closure status cannot deviate from what's factual just because they want their money faster ( can't say I blame them, it's a decent chunk).

That's also quite irrelevant since that limit is excluded from aggregate utilization calculations anyway.

Twist ending, balance isn't.

Re: Unbelievable UBS Termination

californiaboy935 — Thu, 14 Jan 2021 23:42:47 GMT

@Remedios wrote:
If you close the account, you preserve terms. Pay by date blah blah blah is somewhat intimidation tactic.
You didn't default, and unless you do, it's not reportable.
You still have to be late for them to report you as late.
As far as everything else, why don't you escalate it yourself?
Just go higher up and let them know intimidation tactics are still illegal.
Most likely, whomever you talked to is tasked with your account and wants if off their desk.

Is it an intimidation tactic? Scared me to hell. On phone with business partner trying to drum upo the cash from business coffers. If not its coming out of my investments and will hurt me.

Re: Unbelievable UBS Termination

FinStar — Thu, 14 Jan 2021 23:44:21 GMT

@Anonymous wrote:
Is this considered a business or personal account? If it's a personal account, there are consumer protection laws that come into play when a lender tries to bully you but if they're considering it a business account, I'm totally unclear about what regulations exist.

This doesn't sound like UBS is "bullying" the OP. There's the lenders side of things (which we're not privy to know) and then the OP's account. If a lender decides to exit a relationship, personal or business, they can do so (a credit card agreement spells those terms) - so as long it's not in violation of any federal or state laws.

We have no idea what the OP's income is, what transactions were placed on the card (questionable or not), we have no knowledge of what UBS detected as red flags, don't know much about the OP's credit profile, etc.