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BOA Cash Rewards - Cancelled without Notification

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Anonymous
Not applicable

Re: BOA Cash Rewards - Cancelled without Notification

It seems to me to be a pretty nasty practice to close down an account right after a payment on a large balance is made in full, but it does seem to happen with alarming frequency...Obviously, lenders can do whatever they like when it comes to lending (or revoking) credit, but in these situations it just seems mean...I'm very sorry about the closure, OP. Smiley Sad

Message 11 of 22
Anonymous
Not applicable

Re: BOA Cash Rewards - Cancelled without Notification

If you go to honda and you are a first time buyer, they will give you a 4 percent ! for fist time buyer

Message 12 of 22
happypill
Valued Contributor

Re: BOA Cash Rewards - Cancelled without Notification


@Anonymous wrote:

If you go to honda and you are a first time buyer, they will give you a 4 percent ! for fist time buyer


Not to get too far off topic, but there are a lot better deals than 4% right now.

 

OP, you're doing the right thing paying down your balances.  Everyone will have a different experience, but if BofA doesn't want to work with you then you can grow with one of your other lenders.

Message 13 of 22
Anonymous
Not applicable

Re: BOA Cash Rewards - Cancelled without Notification

Sometimes paying off a card can lead to AAs like CLDs or account closures. Barclays has a blog that discusses this (unfortunately can't link blogs here per forum rules), but the gist of it is this. 

 

As your available credit goes up, the risk to the bank goes up because you have more money you can borrow from them. If you are a risky borrower with a poor or thin credit file, the issuer might be more likely to CLD you when you pay off a balance. Think of it this way. If you are using 4.5k of a 5k limit, the creditor only has $500 downside. If you suddenly pay down the balance to zero, the creditor now has $5k downside. If your overall credit profile is poor, the creditor might close your account or take other AAs because $500 was a risk they were willing to take (other $4500 is risk already taken) while now they have $5k of risk in available credit lines. 

 

Generally, paying down a card is good and your score goes up and lenders are happy. Unfortunately though, if you have multiple cards with high balances, derogs like late payments, or a new (thin) file, then paying down sometimes leads lenders to close accounts or give you CLDs. It really just comes down to risk. 

 

If you google "A case studey of a credit line increase and decrease" and read part I and II (should be first two results) you will get a more thorough explanation. While the question answered in the Barclay blog is not exactly on point, the answer covers the rationale behind the occasional AAs when balances are paid down. Part II is a more useful read than part I for your purposes. 

Message 14 of 22
Anonymous
Not applicable

Re: BOA Cash Rewards - Cancelled without Notification

Thanks to everyone for all of their advice, support and helpful information. 

 

Equifax updated the balance for this card from $1448 - $0 today which increased my score by 20 points. I'm happy to see some positive impact, although I am still missing the extra credit to water down my utilization %

 

I plan on continuing to follow up with BOA on this. I understand they have every right to close my account, but their lack of communication is unbelievable. I called today but it is a holiday in the States and I will have to wait until tomorrow.

 

Message 15 of 22
ddemari
Super Contributor

Re: BOA Cash Rewards - Cancelled without Notification

This happened to me twice last year. I do my primary banking at BOA and access my account online a lot. I remember logging in to see my BOA cash rewards Visa gone and calling the number on the back of my card and it said account closed. I then called to talk with a CSR and my account was not closed, there was some data breach and they decided to just close the card and issue me a new one. They never called to tell me or email, both times. 

Message 16 of 22
Anonymous
Not applicable

Re: BOA Cash Rewards - Cancelled without Notification


@ddemari wrote:

This happened to me twice last year. I do my primary banking at BOA and access my account online a lot. I remember logging in to see my BOA cash rewards Visa gone and calling the number on the back of my card and it said account closed. I then called to talk with a CSR and my account was not closed, there was some data breach and they decided to just close the card and issue me a new one. They never called to tell me or email, both times. 


I can understand if they need to cancel the card right away for security reasons but it seems like that was not the case for me.

Message 17 of 22
ddemari
Super Contributor

Re: BOA Cash Rewards - Cancelled without Notification

sorry i guess i should have read your post a little bit slower. If I were you and had a good relationship with BOA, never late and with them for a while... I would look up the email to the EO's office and write them a letter explaining your situation. Either way, a nice person from the office of the president will call you and either have good or bad news for you. 

Message 18 of 22
Anonymous
Not applicable

Re: BOA Cash Rewards - Cancelled without Notification


@ddemari wrote:

This happened to me twice last year. I do my primary banking at BOA and access my account online a lot. I remember logging in to see my BOA cash rewards Visa gone and calling the number on the back of my card and it said account closed. I then called to talk with a CSR and my account was not closed, there was some data breach and they decided to just close the card and issue me a new one. They never called to tell me or email, both times. 


This happened to me, too. When I called, they told me that they were waiting for me to request a new card. I never found out until my card was declined at a hotel while I was on vacation (I was so embarassed). They also wouldn't tell me where the card was compromised at. I guessed it was somewhere on my road trip that I would never go to again, but it would have been nice to know in case it was somewhere I regularly went to back home.

 

I figured I wasn't the only person who this happened to. I've never had another card compromised, so I'm not sure how other banks will respond, but this is one of the many reasons that I don't care for Bank of America.

Message 19 of 22
gdale6
Moderator Emeritus

Re: BOA Cash Rewards - Cancelled without Notification

Amazing that they canceled the account, you dont have tens of thousands of credit available nor owe same amount. I ran higher utils than you (near 94%) when I started my rebuild and I never once received AA.

Message 20 of 22
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