What exactly is AA?

[azguy13]

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@Anonymous wrote:

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@azguy13 wrote:

I have no problem at all closing an account if the bank angers me. I almost did it to Chase when they plead guilty for foreign exchange collusion last year. 

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Problem with worrying about bad behavior in general (as compared to a bank doing something to your account) is that you are quickly left with no big banks as they have all been fined by regulators.   That leaves the small ones, but they may well be doing some of the same stuff, and just aren't big enough to get the attention!

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As depressing as that is, it is so true. 

[Imperfectfuture]

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@azguy13 wrote:

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@Anonymous wrote:

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@azguy13 wrote:

I have no problem at all closing an account if the bank angers me. I almost did it to Chase when they plead guilty for foreign exchange collusion last year. 

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Problem with worrying about bad behavior in general (as compared to a bank doing something to your account) is that you are quickly left with no big banks as they have all been fined by regulators.   That leaves the small ones, but they may well be doing some of the same stuff, and just aren't big enough to get the attention!

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As depressing as that is, it is so true. 

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Credit unions tend to not misbehave, but their product offerings lack luster (cards, loans are much better and easier).  Hence, bank with CU's, use major bank rewards.  JMHO.

[Anonymous]

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@jeffery581 wrote:

i would call AA something other than a denied cli. AA is more serious

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+1 ... If I request a CLI and it's denied, I'm the one who initiated that process, and I feel I am obligated to accept responsibility for what I started. OTOH, I typically think of AA as a situation where *the lender* initiates an action that impacts you negatively, e.g., decreases your credit line, increases your APR, or closes your account. While I might try to get the lender to recon in either situation, AA means to me that it's the lender who got itchy or nervous, not me. 

[Anonymous]

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@Imperfectfuture wrote:

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@azguy13 wrote:

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@Anonymous wrote:

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@azguy13 wrote:

I have no problem at all closing an account if the bank angers me. I almost did it to Chase when they plead guilty for foreign exchange collusion last year. 

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Problem with worrying about bad behavior in general (as compared to a bank doing something to your account) is that you are quickly left with no big banks as they have all been fined by regulators.   That leaves the small ones, but they may well be doing some of the same stuff, and just aren't big enough to get the attention!

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As depressing as that is, it is so true. 

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Credit unions tend to not misbehave, but their product offerings lack luster (cards, loans are much better and easier).  Hence, bank with CU's, use major bank rewards.  JMHO.

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There are lots of CUs, but some do misbehave!

https://www.fincen.gov/news_room/nr/pdf/20141125.pdf

http://creditunionwatch.blogspot.com/2015/05/28-cus-fined-for-filing-q4-call-report.html

http://www.tulsaworld.com/archives/credit-union-ex-officials-fined/article_92ebc5ed-a1e8-521c-9baa-da5a4337a15f.html

These are minor compared to some of the big banks (except the first, when Fincen is involved you are in trouble) but.....

And, recently:   http://www.wsj.com/articles/u-s-credit-union-regulator-passes-new-rules-on-credit-union-membership-1430415511 

attempting to change rules so that CUs can't be open to anyone who joins an "association"

[NRB525]

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@Anonymous wrote:
Adverse Action is basically "punishment" from the bank: anything that makes the account less desirable for the borrower.

AA can include denial of a new application or CLI request, account being closed, credit limit being reduced, or APR penalty rate being applied. Some people also consider transaction declines or freezing an account AA but I think that's a stretch.

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No, this is not AA. The cardholder is NOT worse off in these situations.

Yes, this is definitely AA. The bank has taken ACTION.

No, this is not AA, this is just a result of the cardholder not paying according to terms. This is an automatic next step specified in the Terms of the Contract.

This is also not AA. There could be any number ot technical SNAFUs that lead to a transaction decline.