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

longtimelurker
Mega Contributor

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


@dragontears wrote:

@dustin31g wrote:

I believe the bigger issue is that is it really okay for the big banks to do whatever they want without any input from the customer/consumer? This is why I hope that the laws are changed very very quickly to stop these big banks from unilateraly doing anything that they want. It's unethical and not okay. 


I suppose you would like it for credit to become harder to obtain? Or maybe have a contract where the lender can't close/change your limit as long as you make $1,000/month in purchases? 

 

Face it, credit is fake money that doesn't even belong to you. Credit is not a right. Credit isn't your money to do with as you please. 


Yes, it's easy to all want it one way (similarly we don't have to give an issuer notice of intent to close or reduction in use).

 

However, I think a lot of the issues complained about here are more worse because credit scores are not the responsibility of the issuer.    So from an issuers viewpoint, it makes a lot of sense that they can CLD/close etc whenever their business model detects an unacceptable risk.   The problem is that this may have an impact on score (e.g. closing just after opening) hurting the user although this is not the intention of the issuer.

 

Still, even if there was no score impact, people here would still complain when large lines of credit disappear, but with less justification!

Message 31 of 33
CreditCrusader
Established Contributor

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

Yay! This is a thread where I get to be the proverbial broken record...and I do love vinyl Smiley Happy

 

The issue here isn't whether a CCC can close your account in a snap. We already know they can.

 

The issue here isn't whether you have 3 cards or 30. Good credit comes in all shapes and sizes.

 

The issue here (broken record alert) is the practice of accumulating enormous credit lines (typically via store cards) to pad overall available credit and manipulate reported utilization. If that wasn't the issue, then this closure (and others of its ilk) probably wouldn't have been posted in the first place.

 

As many have said on these very pages, it is absolutely the right of credit users to pad overall available credit to manipulate reported utilization. Just remember that it is also the prerogative of CCCs to yank out the rug, without prior notice, and shoot an arrow into that utilization rate. Playing the game means taking the good AND the bad.

I'm Spartacus!

hr>Starting Score: EQ 546, EX 547, TU 580
Current Scores (lender): EQ 747 , EX FICO 760, TU 758 FICO scores>
Goal Score: ?
Take the FICO Fitness Challenge
Message 32 of 33
designated_knitter
Established Contributor

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


@CreditCrusader wrote:

Yay! This is a thread where I get to be the proverbial broken record...and I do love vinyl Smiley Happy

 

The issue here isn't whether a CCC can close your account in a snap. We already know they can.

 

The issue here isn't whether you have 3 cards or 30. Good credit comes in all shapes and sizes.

 

The issue here (broken record alert) is the practice of accumulating enormous credit lines (typically via store cards) to pad overall available credit and manipulate reported utilization. If that wasn't the issue, then this closure (and others of its ilk) probably wouldn't have been posted in the first place.

 

As many have said on these very pages, it is absolutely the right of credit users to pad overall available credit to manipulate reported utilization. Just remember that it is also the prerogative of CCCs to yank out the rug, without prior notice, and shoot an arrow into that utilization rate. Playing the game means taking the good AND the bad.


I've never listened to your record before but I like it!

 

Has a great beat and I can dance to it!  Smiley Happy

Started Over Again after Cap1 Death Penalty:
06/15/2019:
03/02/2021:
04/06/2021:
Lesson Learned: DON'T POKE THE BEAR!!! THE BEAR WILL WIN!!!
Message 33 of 33
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