Has anyone had an Annual Fee card closed for inactivity?

[NRB525]

I'm not talking about a situation where the card balance wasn't being paid, went to collections, or BK type situations.

Rather, you had a card, it was charging an AF, you weren't using it, and the bank closed the card after a period of inactivity?

[SouthJamaica]

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@NRB525 wrote:

I'm not talking about a situation where the card balance wasn't being paid, went to collections, or BK type situations.

Rather, you had a card, it was charging an AF, you weren't using it, and the bank closed the card after a period of inactivity?

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Great question

I don't know the answer because I've never had inactivity

[simplynoir]

I can't see a credit card company ever doing this because it's basically free money. Maybe CLD if the limit is too high for non-use but keep the card open

[wasCB14]

I recall reading ONE report of it, and there may have been more to the story than inactivity, and it was back when Cap1 charged an AF on the Platinum. The report was silent on whether the AF was paid.

So even if my memory of it is perfect and I got the full story, it's definitely unusual.

Back when Amex Gold was PRG and the AF was much lower with a different set of perks, I did ask Amex this. The rep, after investigating the matter for several minutes and presumably contacting some superior, said that as long as the AF was paid the card did not need spend to stay open.

[K-in-Boston]

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@simplynoir wrote:

I can't see a credit card company ever doing this because it's basically free money. Maybe CLD if the limit is too high for non-use but keep the card open

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This exactly.  Amex might be a bad example to use since all signs point to activity on any account will keep all of them open, but my personal Delta Platinum Card has had no activity other than AF for about 18 months and my Blue (which has no AF) hasn't had any activity in ages since Amex fixed the "same Amex Offer on multiple cards" loophole.

Particularly in the airline and hotel card segments, there can be perfectly logical reasons to continue to pay annual fees without using the cards purely for perks or free night/companion certificates.

But I don't recall seeing any closures simply for inactivity as long as the AF was being paid and there were no other reasons to close the card.

[Anonymous]

AF and payment of that AF IS activity. Few lenders close major credit cards before a year of inactivity so it makes sense that the AF and payment of the AF would restart that clock. 

[Anonymous]

I agree, if you're paying $250 for Gold and not using it. though i don't know why anyone would. lol

I can't really see Amex closing it, it's free Money! 

Though i guess it depends on the issuer, and how written in stone the non use clause is or its verbiage on the matter.

[NoMoreE46]

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@NRB525 wrote:

I'm not talking about a situation where the card balance wasn't being paid, went to collections, or BK type situations.

Rather, you had a card, it was charging an AF, you weren't using it, and the bank closed the card after a period of inactivity?

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I was curious about this exact topic...   Thus, it appears that the answer is no as the payment of the AF is deemed as an activity unless the payment is excluded as activity by the isuer.

[recoveringfrombk7]

DH just got a massive CLD from cap one on an AF ($5/month) card for inactivity, which led him to close it (9500 -> 2000).  Up until that point it had been 5 years or more of no activity.  Prior to that the limit had been cycled many times over the course of the 20 years he had it.  We tried to PC it or waive the fee for years now and no dice.  Feels good to finally get rid of it.

[NoMoreE46]

@recoveringfrombk7 

Would you share with us which card from Capital One?