topic Re: BofA closed account without notice after adding authorized users in Credit Cards

BofA closed account without notice after adding authorized users

superchurn — Wed, 29 Mar 2023 17:11:57 GMT

TLDR: Bank of America does not like it when your CC has too many authorized users and WILL close your account WITHOUT NOTICE!

A DP for anyone considering to do this... similar to https://ficoforums.myfico.com/t5/Credit-Cards/Bank-of-America-closed-my-credit-card-accounts-after-adding/td-p/5998028

Just a DP for anyone out there... I added a couple of friends and family as authorized users to help them build credit since they're new to America. I had a total of 6 authorized users on the account. BofA closed my account after adding the 7th authorized user. Unlike the other post, I wasn't trying to take advantage of deals like add an authorized user, get $20. Credit report is flawless, no marks. Always PIF, never kept a balance. Doesn't help I just chruned a BofA checking account before this. It was my 2nd oldest account on my file at 2 years and 3 months. I use it enough to keep it active but barely due to churning other cards.

File: 8 cards, newest account 3 months, longest account 3 years. Utilization always under 10% total. FICO 749. Inquiries: 3 per bureau.

Called in, and rep did not mention anything to me and said BofA does not reopen closed accounts. Rep just mentioned that a letter was sent out and did not talk about any other details. I will submit a complaint to CFPB, but as notied in the other forum, there is no legal recourse or legal ground to persue action otherwise. Might visit a branch to see if that is any use.

Re: BofA closed account without notice after adding authorized users

JoeRockhead — Wed, 29 Mar 2023 18:46:00 GMT

@superchurn wrote:
TLDR: Bank of America does not like it when your CC has too many authorized users and WILL close your account WITHOUT NOTICE!

A DP for anyone considering to do this... similar to https://ficoforums.myfico.com/t5/Credit-Cards/Bank-of-America-closed-my-credit-card-accounts-after-adding/td-p/5998028

Just a DP for anyone out there... I added a couple of friends and family as authorized users to help them build credit since they're new to America. I had a total of 6 authorized users on the account. BofA closed my account after adding the 7th authorized user. Unlike the other post, I wasn't trying to take advantage of deals like add an authorized user, get $20. Credit report is flawless, no marks. Always PIF, never kept a balance. Doesn't help I just chruned a BofA checking account before this. It was my 2nd oldest account on my file at 2 years and 3 months. I use it enough to keep it active but barely due to churning other cards.

File: 8 cards, newest account 3 months, longest account 3 years. Utilization always under 10% total. FICO 749. Inquiries: 3 per bureau.

Called in, and rep did not mention anything to me and said BofA does not reopen closed accounts. Rep just mentioned that a letter was sent out and did not talk about any other details. I will submit a complaint to CFPB, but as notied in the other forum, there is no legal recourse or legal ground to persue action otherwise. Might visit a branch to see if that is any use.

I'm surprised you haven't had an issue prior to now with 6 AUs. Adding that 7th AU likely triggered a review of your account and file, and if they suspected you of churning cards (which you admit to) that most likely caused the closure. At the end of the day, it's their money and they can close any account, anytime they feel like it. They won't reopen a closed account. You'll have to apply again, but if they have flagged you for churning, you'll likely be black listed. Best of luck.

Re: BofA closed account without notice after adding authorized users

imaximous — Wed, 29 Mar 2023 19:03:04 GMT

Oh no. Sorry to hear!
I’m wondering if I should remove a few AUs from my account. I’ve had 7 AUs on my PR card for a few years.
Maybe I haven’t had an issue because all of us but 1 have the same last name. My DW didn’t change her last name to mine, so she’s the only outcast 😬

Re: BofA closed account without notice after adding authorized users

NYC_Fella — Wed, 29 Mar 2023 19:14:43 GMT

I can't imagine how it could ever be a good idea to have a bunch of AUs on a card. Maybe I need to get out more.

Re: BofA closed account without notice after adding authorized users

superchurn — Wed, 29 Mar 2023 20:43:06 GMT

@JoeRockhead wrote:
@superchurn wrote:
TLDR: Bank of America does not like it when your CC has too many authorized users and WILL close your account WITHOUT NOTICE!

A DP for anyone considering to do this... similar to https://ficoforums.myfico.com/t5/Credit-Cards/Bank-of-America-closed-my-credit-card-accounts-after-adding/td-p/5998028

Just a DP for anyone out there... I added a couple of friends and family as authorized users to help them build credit since they're new to America. I had a total of 6 authorized users on the account. BofA closed my account after adding the 7th authorized user. Unlike the other post, I wasn't trying to take advantage of deals like add an authorized user, get $20. Credit report is flawless, no marks. Always PIF, never kept a balance. Doesn't help I just chruned a BofA checking account before this. It was my 2nd oldest account on my file at 2 years and 3 months. I use it enough to keep it active but barely due to churning other cards.

File: 8 cards, newest account 3 months, longest account 3 years. Utilization always under 10% total. FICO 749. Inquiries: 3 per bureau.

Called in, and rep did not mention anything to me and said BofA does not reopen closed accounts. Rep just mentioned that a letter was sent out and did not talk about any other details. I will submit a complaint to CFPB, but as notied in the other forum, there is no legal recourse or legal ground to persue action otherwise. Might visit a branch to see if that is any use.
I'm surprised you haven't had an issue prior to now with 6 AUs. Adding that 7th AU likely triggered a review of your account and file, and if they suspected you of churning cards (which you admit to) that most likely caused the closure. At the end of the day, it's their money and they can close any account, anytime they feel like it. They won't reopen a closed account. You'll have to apply again, but if they have flagged you for churning, you'll likely be black listed. Best of luck.

they wouldn't know I'm churning cards, as I haven't cancelled any cards yet. But I did churn their checking account, but not a credit card. This is the only card I ever had with them.

Re: BofA closed account without notice after adding authorized users

coldfusion — Wed, 29 Mar 2023 19:47:51 GMT

@imaximous wrote:
Oh no. Sorry to hear!
I’m wondering if I should remove a few AUs from my account. I’ve had 7 AUs on my PR card for a few years.
Maybe I haven’t had an issue because all of us but 1 have the same last name. My DW didn’t change her last name to mine, so she’s the only outcast 😬

You and DW almost certainly live at the same address so at least on the surface it would be reasonable to assume the 2 of you are part of the same household. Same with having AU with the same last name even with different addresses, a simple example would be a college-age daughter or son being an AU on your card so they have something on hand in case of emergencies.

Having multiple friends listed as AU with different last names and different addresses was likely seen as an indicator of there being a high proability that AU access was being sold. Issuers don't fool around when they suspect that's happening, that's a big enough red flag for them to start off by closing the account and that isn't just a BoA thing.

Re: BofA closed account without notice after adding authorized users

Kforce — Wed, 29 Mar 2023 20:15:53 GMT

^^^ This

Re: BofA closed account without notice after adding authorized users

Bmom — Wed, 29 Mar 2023 20:39:52 GMT

Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

Re: BofA closed account without notice after adding authorized users

superchurn — Wed, 29 Mar 2023 20:42:46 GMT

@Bmom wrote:
Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

You add them as AU, their reports get updated with your credit, but you don't actually give them the card. Just cut it up.

you help them, without risking them using your card and running off

this is not related to churning.

Re: BofA closed account without notice after adding authorized users

Anonymous — Wed, 29 Mar 2023 20:48:00 GMT

@superchurn wrote:
@Bmom wrote:
Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

You add them as AU, their reports get updated with your credit, but you don't actually give them the card. Just cut it up.

you help them, without risking them using your card and running off

this is not related to churning.

I think this may be less common now as AU accounts with different addresses are viewed much more suspiciously by some issuers and may not help them get a card or a loan etc. But probably still works for some.

Re: BofA closed account without notice after adding authorized users

NYC_Fella — Wed, 29 Mar 2023 20:52:50 GMT

@superchurn wrote:
@Bmom wrote:
Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

You add them as AU, their reports get updated with your credit, but you don't actually give them the card. Just cut it up.

you help them, without risking them using your card and running off

this is not related to churning.

Correct. But when you "help" a large number of people, issuers view that as suspicious activity. They may even suspect that you're "selling" this service.

Re: BofA closed account without notice after adding authorized users

Kforce — Wed, 29 Mar 2023 20:59:15 GMT

@Bmom wrote:
Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

One can add an AU and never give the AU user the card or card number.

The owner can monitor and close the card any time the want/need.

With many issuers the card can even be locked/frozen.

A problem occurred, people were selling AU accounts to strangers for money.

The original purpose was for the stay at home spouse, and son or daughter to be able to have a card.

AU accounts for friends, and friends of friends is not what the issuers want.

Looks like you are selling accounts and they also know the cards will not be used.

Not just BofA, almost all issuers will shut you down if they notice such activity.

Many parents add a son or daughter to a couple of there accounts and never give them a card.

By the time they need to think about getting a card, they have 4-5 years of credit reporting and

a little head start.

Re: BofA closed account without notice after adding authorized users

imaximous — Wed, 29 Mar 2023 21:01:24 GMT

@coldfusion wrote:
@imaximous wrote:
Oh no. Sorry to hear!
I’m wondering if I should remove a few AUs from my account. I’ve had 7 AUs on my PR card for a few years.
Maybe I haven’t had an issue because all of us but 1 have the same last name. My DW didn’t change her last name to mine, so she’s the only outcast 😬
You and DW almost certainly live at the same address so at least on the surface it would be reasonable to assume the 2 of you are part of the same household. Same with having AU with the same last name even with different addresses, a simple example would be a college-age daughter or son being an AU on your card so they have something on hand in case of emergencies.

Having multiple friends listed as AU with different last names and different addresses was likely seen as an indicator of there being a high proability that AU access was being sold. Issuers don't fool around when they suspect that's happening, that's a big enough red flag for them to start off by closing the account and that isn't just a BoA thing.

Yeah, DW and I still live together, LOL.

We do also have other joint accounts with BofA.

All other AUs are kids and my parents, so I'm definitely not running any scheme here, but I'm starting to remember similar posts from a while back referencing BofA and account closings because of AUs.

What I've also done is take some of those physical BofA cards back and give them Capital One AU cards because I can control spending with Cap One. Unfortunately, with BofA you can't assign individual limits on personal cards and my PR has a very high CL.

Good thing about Cap One is they issue different card numbers for AUs and I can change their credit limits as I please.

Re: BofA closed account without notice after adding authorized users

coldfusion — Wed, 29 Mar 2023 21:09:50 GMT

@Bmom wrote:
Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

Churning is when you apply for a card or deposit account in order to collect a signup bonus, closing it after waiting the appropriate time, and then later reapply for the same card or deposit account in order to collect a signup bonus again. The practice got to be prevalent enough that card issuers were compelled to put restrictions in place to curtail the behavior like the AMEX "lifetime" restriction, the Chase 24 (now 48) month SUB gap and 1 x Sapphire card rules, and the different requirements that Citi has tied to both intervals and mininum times after closing a card before eligiblity to earn another one.

It isn't unheard of to have a cardholder with multiple authorized users, in fact it was a thing for a while with the CNB Crystal where the cardholder could have 4 authorized users each with a yearly $250 travel credit. That ended up getting abused too much too so the benefit nerfed.

Re: BofA closed account without notice after adding authorized users

superchurn — Wed, 29 Mar 2023 21:21:08 GMT

@Anonymous wrote:
@superchurn wrote:
@Bmom wrote:
Might someone explain what churning cards means? Why would this be a thing? And maybe why on earth one would want or allow that many people to access your credit?? You're responsible for every dime an AU spends. That is scary.

You add them as AU, their reports get updated with your credit, but you don't actually give them the card. Just cut it up.

you help them, without risking them using your card and running off

this is not related to churning.
I think this may be less common now as AU accounts with different addresses are viewed much more suspiciously by some issuers and may not help them get a card or a loan etc. But probably still works for some.

It works really well for new comers that have nothing. Half the time it's hard to be recognized in the system or to even pass ID check because no file/thin file. Def helps for credit applications to some degree too

Re: BofA closed account without notice after adding authorized users

fury1995 — Wed, 29 Mar 2023 21:52:00 GMT

@superchurn wrote:
they wouldn't know I'm churning cards, as I haven't cancelled any cards yet. But I did churn their checking account, but not a credit card. This is the only card I ever had with them.

Doesn't matter. Bank of America is a relationship bank.

You just opened then closed (churned) a checking account, then added 7 authorized users to another account.

They don't KNOW but what are they supposed to assume?

As a side note.. Issuers are taking a real hard look these days even when an A/U spouse puts more spend through an account than the primary.

Re: BofA closed account without notice after adding authorized users

Remedios — Wed, 29 Mar 2023 22:30:40 GMT

Bank of America does this often when bunch of random people are added and rightfully so. Other lenders do it with similar frequency, it is not unique to BoA.

Cap One will close account before you can say AU.

Next time you decide to "help", don't pick a whole village, one person is enough if there is no obvious relationship between primary cardholder and AUs.

Re: BofA closed account without notice after adding authorized users

pauldc73 — Thu, 30 Mar 2023 00:05:05 GMT

Maybe I have been living under a rock, but I had no idea that many AUs could be added to an account.... Well up to 6 anyway!

Re: BofA closed account without notice after adding authorized users

Anonymous — Thu, 30 Mar 2023 00:30:04 GMT

@pauldc73 wrote:
Maybe I have been living under a rock, but I had no idea that many AUs could be added to an account.... Well up to 6 anyway!

The tension is that in theory, banks like AUs. On many of my cards where I don't have an AU, I will from time to time get emails telling me to add AUs to build rewards faster (oh, and just purely by chance, increase the amount charged to the card!)

But obviously "good" AUs are what is desired...

Re: BofA closed account without notice after adding authorized users

Anonymous — Thu, 30 Mar 2023 00:31:51 GMT

@Remedios wrote:
Bank of America does this often when bunch of random people are added and rightfully so. Other lenders do it with similar frequency, it is not unique to BoA.
Cap One will close account before you can say AU.

Next time you decide to "help", don't pick a whole village, one person is enough if there is no obvious relationship between primary cardholder and AUs.

Just thinking, if the account holder doesn't give the random AUs their card, what is the risk to the bank? I guess there must be cases where the AUs get hold of a replacement card or something (but even then primary holder should be responsible if he/she added them)