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CU transferred account and new TL without updating original open date

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CU transferred account and new TL without updating original open date

My old employer's CU was recently merged into Hanscom CU.  I had a credit card which was opened with the old CU about 12 or 13 years ago.  Since Hanscom recently took over the account, Hanscom closed my old TL, notated transfer, and opened a new TL.  But the problem is that the new TL has an open date of July, so it effectively lowers my AAoA and impacts me on things such as Chase's 5/24 rule.  Every transferred account I've ever had reported always gets the new tradeline updated to the original open date.  Making matters worse is that the old CU only reported to EX and Hanscom is reporting to all three CRAs.

 

I've tried asking Hanscom to date the new tradelines to reflect the actual open date of the account and they are so far refusing.  I tell them it's not a new account and that the new open date is being inaccurately reported.  They respond that prospective creditors will be able to associate the old TL with the new TL, that I can ask for a review, but I've tried explaining to them that it doesn't really work that way because the scoring models don't know to associate the two and there's no guarantee a creditor will agree to manually review and do the leg work.  I've also explained that backdating is the only way to offset the increase they've caused in my AAoA so that scoring models will adjust in kind.  Making matters worse is the fact that the old TL is only on EX, so if a creditor doesn't pull EX, there is definitely no way to make an association.

 

Has anyone dealt with this sort of situation?  I'm still trying to plead with Hanscom to work with me on this, but they are being very stubborn.

Message 1 of 7
6 REPLIES 6
Super Contributor

Re: CU transferred account and new TL without updating original open date


@cim wrote:

My old employer's CU was recently merged into Hansom CU.  I had a credit card which was opened with the old CU about 12 or 13 years ago.  Since Hancom recently took over the account, they closed my old TL, notated transfer, and opened a new TL.  But the problem is that the new TL has an open date of July, so it effectively lowers my AAoA and impacts me on things such as Chase's 5/24 rule.  Every transferred account I've ever had reported always gets the new tradeline updated to the original open date.  Making matters worse is that the old CU only reported to EX and Hanscom has reported to all three CBs.

 

I've tried asking them to date the new tradelines to reflect the actual open date of the account and they are so far refusing.  I tell them it's not a new account and that the new open date is being inaccurately reported.  They respond that prospective creditors will be able to associate the old TL with the new TL, that I can ask for a review, but I've tried explaining to them that it doesn't really work that way because the scoring models don't know to associate the two and there's no guarantee a creditor will agree to manually review and do the leg work.  I've also explained that backdating is the only way to offset the increase they've caused in my AAoA so that scoring models will adjust in kind.  Making matters worse is the fact that the old TL is only on EX, so if a creditor doesn't pull EX, there is definitely no way to make an association.

 

Has anyone dealt with this sort of situation?  I'm still trying to plead with them to work with me on this, but they are being very stubborn.


Can you clarify who them is?  I am not certain whether it is the CRAs or whether it is Hanscom.

 

I had an almost identical situation happen with my student loan.  (It was transfered by SL management company A to SL company B.)  It took many many months of working with the CRAs and with company A and with company B.  But I eventually got it fixed.

Message 2 of 7
Super Contributor

Re: CU transferred account and new TL without updating original open date

PS.  I have had two different credit cards get taken over by new companies in the last 13 years.  And in both cases the record remained the same, except possibly a name change of the creditor.  But they didn't close an account and open another.  So personally I think Handscom is handling this in an unnecessary way.

 

An important point in all this is whether in fact your card was actually cancelled.  I am guessing it wasn't.  For example, I bet you continued to use it.  You never applied for a new card, it almost certainly retained the same logo (Visa, MC, etc.) and the product itself probably didn't change (it had exactly the same benefits as before -- cash back, whatever).  So really this is just the same account, just being managed by a company with a different name.

Message 3 of 7
Established Member

Re: CU transferred account and new TL without updating original open date

I updated the post to clarify, it's Hanscom who opened the new TL and I am trying to work with, I haven't reached out to the CRAs.

 

After the merger, they did send me a new card which does have a new card number.  One thing is for sure though, I never applied for a new account, they simply took the old account over and that's what's so frustrating in dealing with Hanscom, they aren't drawing a distinction between a new TL and a new account.

Message 4 of 7
Super Contributor

Re: CU transferred account and new TL without updating original open date

My feeling is that what they are doing is really unusual.  It is not strange for company A to be absorbed into company B.  (I am here limiting the discussion to companies that offer financial accounts to customers, whether profit or non-profit: CUs, banks, etc.)  But when such a merger or "absorption" occurs, every effort is made to keep all the account info basically the same and continuing to stay open and active.

 

I gave you two cases that are exact parallels to your situation, which was credit cards.  In both cases the cards were aborbed into other completely different banks and there was never a closing of my account -- and if there had been on the credit report, I am certain that the new account would have retained the same date opened.

 

Actually,one of those cards was owned by Providian.  Providian was aborbed into Washingtoin Mutual in 2005 -- totally without a hitch.  No changes to my date opened, etc.  Then WaMu went into receivership during the 2008 financial collapse and my card was sold again to Chase.  AGAIn this happened without a hitch.  My Chase card still reads that it was opened in 2003 -- even though it was in fact a Providian card that was opened then.

 

Recently my savings account with GE Capital Bank was sold to Goldmann Sachs.  Again, a very similar thing.  My web account with GE Capital bank was ported over directly to Goldman Sachs.  And it shows that it was opened two years ago, the date I originally opened the GECB account.

 

Another relevant discussion point is Product Changes.  Your card did not involve a product change, but typically when you change a credit card to a completely different card altogether, e.g. a Citibank Premiere to a Citi Doublecash, they do not treat that as you opening a new card and cancelling the old one.  Your new card retains all the old Date Opened info as before.

 

I encourage you to get feedback and strategy advice from other folks here.  One option might be to call one or more of the CRAs and ask them for help in understanding what a "Date Opened" means.  Explain that you want to work with the bank on this first, but you want to understand from the CRAs how this is supposed to be handled.  If you can get a CRA rep to say that almost all banks do not do what is being done to you, that may help in your further discussions with Hanscom.

Message 5 of 7
Valued Contributor

Re: CU transferred account and new TL without updating original open date

It is the CU's prerogative to report the transferred account as a new account.   There isn't much you can really do.  By all means fight them, they may be willing to bend.  If not, you might be able to get them to close the account and delete the new TL.

 

I will be in the same boat next month.  My old employer CU is forcing a upgraded CC.  Since all of their product changes result in a new account, I fully expect my old almost 20 year old account to be closed and a new one opened.  I am still debating if I want to preemptively close the account.

Message 6 of 7
Senior Contributor

Re: CU transferred account and new TL without updating original open date

+1 Despite the experiences of the OP and CreditGuyInDixie, TL's can report as newly opened in some cases.

Message 7 of 7
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