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@bartoe wrote:It has to do with the Dodd Frank Act that was introduced when the economic crisis hit. It gave Credit Card Companies the opportunity to close or decrease credit lines after so many months/years of no usage. When I worked at my CU in order for us to be compliant we had to send a letter explaining that if there was no usage to your card we had the right per act number xyz to close the card per our discrestion.
This response actually makes a lot of sense and is probably why a number of lenders CLD for inactivity. It is not limited to Barclay.
@bartoe wrote:It has to do with the Frank Dod Act that was introduced when the economic crisis hit. It gave Credit Card Companies the opportunity to close or decrease credit lines after so many months/years of no usage. When I worked at my CU in order for us to be compliant we had to send a letter explaining that if there was no usage to your card we had the right per act number xyz to close the card per our discrestion.
Yeah Barclay closed my wife's card after having 4 years of no activity, they sent a letter beforehand saying she needed to use the card by a certain date or it will be closed on that date. She just let them close it since it olnly had a 500$ limit.
@CreditMagic7 wrote:As expected as some replies suggest (and Is True) this is still very good information to take note of. Thanks CA for sharing. And here is why.
While this community has long well knew how tender that Barclays "IS", it's of importance to also know how "EXTREME" they can be when their hammer does come down.
As mentioned, that good a Limit all the way down the ladder to $1K should make it aware for others who are yet to experience something similar and so they might take action to prevent it on themselves or a friend/family member.
That being said it's almost assured there is a point of trigger in months? whereby a Lender will draw out the hatchet on such an unused account (probably) at any level but just so happened with the OP's friend they had a very nice limit. I suppose we could say that Limit with Barclays (maybe others) sitting high on their scale at zero usage is a nice big Target that looms encouraging for them to take a whack at and unfortunately they did.
@I have (1) Barclays card (Ring @$5K) and they have not issued any auto-cli's since going back 2 years ago with the Rewards Card. I tried several times for Sallie Mae MC in my first year with no joy only wasted HP's plus on the Ring app that was also denied. However they did allow a product change to it but still refused to offer any more credit. In other words that Rewards Card limit is the current Ring Card limit.
Some members have had much better luck in their card relationship with Barclays but that also sure doesn't make them immune to what we see in here like this from time to time either.
I have the exact same experience. PC RMC to Ring, 5.5k limit, Denied 1 try for CLI, Almost 2 years old, Never CLI, 715 TU.
I guess we know the profile that goes nowhere with Ring, lol.
elim wrote:
I have the exact same experience. PC RMC to Ring, 5.5k limit, Denied 1 try for CLI, Almost 2 years old, Never CLI, 715 TU.
I guess we know the profile that goes nowhere with Ring, lol.
humuhumunukunukuapua'a wrote:
Elim - try applying for a different Barclay card and moving the limit over. We've seen this with many other lenders where they won't approve a CLI but will give you additional credit on a new card, so it's not exclusive to Barclay, either. Give it a try.
The same thing happened to me. I had a card that was used for home improvements, I paid it off, and then the economic situation struck and they closed it. I believe (and this was many years ago) the Frank Dodd act gave financial instutions/credit card companies the right to close/decrease limits as they see fit.
When I was a LO at the CU, we'd have people call in to decrease their lines, we told them sure! we can do this but it doesn't mean when you call us to apply for an increase you'll get it back!
My experience with Barclays:
Almost exactly two years ago (the HP just dropped off my CR this week), I received a pre-qualified B&N card offer. Declined.
I think I tried again for that before finally being approved (from another pre-qualified offer) and received a $6500 SL B&N card. I only use it at B&N.
When I was in the market for some Apple products (which I ended up getting at Best Buy, deferred interest), I decided to try to get the Apple card from Barclay. I was declined due to having TOO MUCH of my B&N CL available to use. (I wanted the 0% interest for the Apple purchase)
When I found out I was going to be at a meeting next month in a Wyndham branded hotel, I decided to try to get the Wyndham card to get enough points to pay for the hotel room. Declined for too many HPs. Called the recon line and couldn't get them to budge.
Until that HP dropped off this week, I had FIVE different HPs on my CR from Barclays. And the only card from them is one that it only makes sense to use at B&N. Now, I spend quite a bit on books, but not $6500.
I don't see a lot of sense from them.
@NRB525 wrote:
@pizza1 wrote:
Barclays is really not that difficult to figure out....
They don't like BT's, cash advances, lots of new acts and/INQ, or cards holders going long periods of time without using their cards, and for the holders to use them just for bonus points and bonus categories, and using most of their CL. LOL (think of them as an insecure jealous GF who is always checking up on you, or wanting to see your phone)...My ex-wife was something like that. Actually a lot like that.
Which is why I don't app Barclays
Well said, I wouldn't put up with that type of behavior from someone I was dating and I certainly wouldn't put up with it from a company I'm doing business with either.
The main reason I never applied for a Barclays' card is because I don't want one. Their rewards don't seem as appealing as the deals I can get with other lenders. So even if I had a great impression of them, I probably still wouldn't apply. However, I have a very negative impression of them. It seems like I'm always hearing about someone's negative experience with Barclays and rarely hear about someone's positive experience.
I tend to be a rather conservative credit card user. I only app for a new card at most about once every 1-2 years and I always PIF. However, one thing I don't do and have no intention of ever doing is concentrating my spending on only 1 or 2 cards. I love spreading my spending across all my cards to maximize rewards earnings. It's fun for me. Any card I have is only going to get my swipes if it's the most advantagous, or at least tied for most advantagous, card for a given transaction. I don't use 90% of my credit limit on any of my cards, and I don't just mean before I PIF, I mean at all. My monthly utilization on any card virtually never climbs to double digits. If they want/expect their cardholders to use them exclusively, or even simply 'heavily,' then frankly it sounds like me and Barclays would be a match made in hell.
Is Barclays well within their rights to take AA without any advanced notice? Of course, absolutely. But I certainly wouldn't do a song and dance to try to stop them.
@Creditaddict wrote:
Let's be clear... Call it unfair if you want but most other banks are not known for adverse action because of aggressive credit actions.
Everyone can have a personal opinion, I just stay that I feel like if you don't use but the use you will be reviewed.
Agreed!! +100