Hooters MasterCard Problem

[John060675]

Dear Forum,

I have an issue with my Hooters MasterCard.  This credit card had a credit line of $2,275, which I had over the limit for over a year.  I was making payments every month, with two payments returned for NSFs in 2009 (loss of job). 

Anyway, I have been in contact with them over the past year to try to make sure that this account was not closed.  I asked point blank that if I kept making payments that when my account was below the credit limit would I have an account in good standing and have available credit, and each time I was told yes (have phone records).  Furthermore, my credit report pulled from FICO showed this account as open (did not print report though, like an idiot).  Finally, I was being charge each month an $8 "annual fee", which I have been charged since last year (have past statements printed).  I was told that they started charging this amount because of changes to my terms from missing a couple payments.

Well I made a large payment two weeks ago, which brought my balance to zero.  I waited patiently for the payment to "clear", but the available balance kept showing $0.  I called them today to ask what the situation was, and they told me that my account had been closed since September 2009 when I had two NSFs (not back to back).  What?

This goes against everything that has been occuring over the past year (reps telling me the account is open, being charged a monthly fee for the open account, and them reporting the account as open on my credit report).  I asked if they could reopen it, and the person stated that at this time they could not.

I just feel as if I have been deceived, especially since I have been in contact with them all this time.  I was wondering if anyone has any ideas to get this account open again, or if I should just chalk it up to experience.  I appreciate your thoughts and help.

By the way, I was not charged the $8 monthly fee for the "annual fee" after I made the full payment.

Thank you,

John

[Anonymous]

680 post here.

What have we learned?

Banks will say anything.

Consumers will tell banks anything.

Two NSF in this credit envireonment? You probably didn't have a chance.

I hope things get better for you soon.

[Jazzzy]

In today's credit climate, I don't think there's much you can do. They have the right to close your account any time they want. It's too bad they kept charging you the annual fee.

The only thing I can suggest is to write to them. I don't think you'd have a chance by demanding or being angry. You may have a chance if you are nice, take responsibility for what happened with the account, and tell them that you planned to be a good customer in the future. it doesn't hurt to try.

Good luck.

[armywifey85]

I would file a complaint with the FTC. If account was closed Sept 2009 then you should've received notice of account closure. File a complaint with the Department of Banking also.

Message Edited by armywifey85 on 02-22-2010 06:56 PM

[Anonymous]

---

@John060675 wrote:

Dear Forum,

I have an issue with my Hooters MasterCard.  This credit card had a credit line of $2,275, which I had over the limit for over a year.  I was making payments every month, with two payments returned for NSFs in 2009 (loss of job). 

Anyway, I have been in contact with them over the past year to try to make sure that this account was not closed.  I asked point blank that if I kept making payments that when my account was below the credit limit would I have an account in good standing and have available credit, and each time I was told yes (have phone records).  Furthermore, my credit report pulled from FICO showed this account as open (did not print report though, like an idiot).  Finally, I was being charge each month an $8 "annual fee", which I have been charged since last year (have past statements printed).  I was told that they started charging this amount because of changes to my terms from missing a couple payments.

Well I made a large payment two weeks ago, which brought my balance to zero.  I waited patiently for the payment to "clear", but the available balance kept showing $0.  I called them today to ask what the situation was, and they told me that my account had been closed since September 2009 when I had two NSFs (not back to back).  What?

This goes against everything that has been occuring over the past year (reps telling me the account is open, being charged a monthly fee for the open account, and them reporting the account as open on my credit report).  I asked if they could reopen it, and the person stated that at this time they could not.

I just feel as if I have been deceived, especially since I have been in contact with them all this time.  I was wondering if anyone has any ideas to get this account open again, or if I should just chalk it up to experience.  I appreciate your thoughts and help.

By the way, I was not charged the $8 monthly fee for the "annual fee" after I made the full payment.

Thank you,

John

---

While I can see them closing the account, I do not see any excuse for them lying to you about it for nearly 1/2 a year.  Is there anything in your card agreement about the monthly fee being applied when the card is closed yet still has a balance?

[RobertEG]

While I too dont like the apparent deception on their part, I dont see how you can "hold" them to prior statements they have made.

The day after they tell you something, your account can change,  They can always reevaluate their prior "decisions."

I an not sure that getting it open again would be something I would even want to do.  It has a monthy fee, and probably has probably has a default APR.

Even if they "reopened," I doubt they would do it under terms that would even restore your prior CL.

What they will most likely tell you is that you re-apply for a new card with them.  That will cost you a hard inquiry, with no guarantee of approval.

As for an FTC complaint, what is the specific violation of the FCRA?  I would speculate that your prior billing statements from the creditor will most likely show a loss or your stated CL on the card, and that is what "account closing" legally is.  It is a denial of theiir extenson of additional credit.  It is not account deletion. How much credit they choose to extend is their business decision. 

Your balance is now zero, so it looks like you have avoided both a CO and CA.  I would let this mean 'dawg just die.

Message Edited by RobertEG on 02-22-2010 08:59 PM