Comenity Closed My Accounts w/ Balance - QUESTION please? UTI Effect?

[Anonymous]

Hope it all works out for you, OP.  Sorry to hear you are in this situation. Keep us posted. 

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

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@Anonymous wrote:

Comenity........... we take all of your cards away, then offer you new ones the very same day.

(yes, this has unfortunately happened to quite a number of people).

In all seriousness, OP, I'm sorry this has happened to you and you will ultimately be ok. Comenity can't require you to pay the balance off all at once and can only require you to pay monthly per the terms of your (now closed) account. The difficulty with this is that your account will show extremely high utilization with zero credit being available and a large balance showing. It's terrible of them to do this to you.

If you are concerned about your utilization, it would be best to try to find a way to pay the card off quickly. You wouldn't able to transfer the balance to another lender or card with the account now being closed, unfortunately.

The best suggestion for anyone is to just say no to Comenity. This won't help the OP now, but hopefully will help others learn to be cautious of Comenity going forward.

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I'm not certain this is entirely accurate - OP has an NFCU card in their signature as an example, there's nothing stopping them from logging into online banking and transferring it right this minute (unless the available credit isn't there of course), and with the current 2.99% promo with no BT fee, this isn't a bad idea.

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Actually, it is accurate if the card is closed. You cannot BT from a closed card.

Options for the OP are to either pay it off immediately (I'd suggest to do this if he can, so his utilization is not upside down). Return the overstock purchase if possible or use other personal funds rather than borrowing with interest from other cards to pay off the balance (not ideal).

The other option is to follow the original payment schedule and pay it off over time, with the understanding that utilization will be upside down as a result.

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Excellent point humu!!

[Anonymous]

Return the items you purchased from Overstock. Simple. 

[pipeguy]

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@Anonymous wrote:

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snip....

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Actually, it is accurate if the card is closed. You cannot BT from a closed card.

Options for the OP are to either pay it off immediately (I'd suggest to do this if he can, so his utilization is not upside down). Return the overstock purchase if possible or use other personal funds rather than borrowing with interest from other cards to pay off the balance (not ideal).

The other option is to follow the original payment schedule and pay it off over time, with the understanding that utilization will be upside down as a result.

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I know what I'd do....I'd take the whole 12 months of ZERO percent interest to pay off the card just so Comenity would make ZERO interest and would have to carry the no-profit account for the full term. 

I say that knowing that a single maxed out 100% usage account would not hurt me much if at all since I have a ton of cards and credit available. Given that OP might be in a different situation where the maxed out card would hurt, I'd probably stick to the original 3 month payoff schedule.

[Ysettle4]

Sorry to hear how they closed your accounts out. However random it may seem to you and others who have experienced this, there is definitely a reason or some events, whether on your credit reports, or original application, that brought this on. Maybe there's something under their T&C, along some fine print, that was violated. Again, I don't know as most don't here but something triggered this.

I currently have 5 comenity majors with a total exposure of $77K and I have yet to have any issues. I've opened roughly 21 accounts since 2015 and have carried total balances up to $14K at one point and again, no AA. It would be great to truly understand why this takes place, with comenity or any other creditor for that matter. Maybe an AA FAQ or something.

[pipeguy]

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@Ysettle4 wrote:
Sorry to hear how they closed your accounts out. However random it may seem to you and others who have experienced this, there is definitely a reason or some events, whether on your credit reports, or original application, that brought this on. Maybe there's something under their T&C, along some fine print, that was violated. Again, I don't know as most don't here but something triggered this.

I currently have 5 comenity majors with a total exposure of $77K and I have yet to have any issues. I've opened roughly 21 accounts since 2015 and have carried total balances up to $14K at one point and again, no AA. It would be great to truly understand why this takes place, with comenity or any other creditor for that matter. Maybe an AA FAQ or something.

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I don't agree with the premise that Comenity has any logic to their closing accounts. I had exactly 1 Comenity account (Total Rewards) all scores over 740 (at the time, TU which they use was 790) with a good credit limit, never late, never high utility, no risk factor with my other accounts and lots of accounts from major prime lenders and they closed my account after a year and a half (I assume because I always paid in full and they didn't get any interest from me). If you have not been AA'd by Comenity, consider yourself lucky.

[fltireguy]

Are we POSITIVE that Comenity cards report like this when they close them? That is different from how Sync reports on an account that they close - when Sync closes your acct they will still show a balance of, say 2331/12000 when he account is closed, until it is paid to zero

[Anonymous]

pipeguy, I remember well when yours happened and it was sad. If I recall correctly, it was right after they gave you an APR reduction. Certainly taught me not to ask Comenity for APR reductions or anything else. Pretty sad.

[Anonymous]

asgardian wrote:

Return the items you purchased from Overstock. Simple.



humuhumunukunukuapua'a wrote:

Agreed.

[Anonymous]

Op I am so sorry this happened to you.