Comenity Roomplace Charging $10 min monthly on zero balance accounts?

[Anonymous]

Bought a sectional, paid off in 8 months, haven't made new purchase in about 4 months, now they want to charge on a zero balance. Should I just close this account? I have no need for additional purchases in at least the next 12+ months. It's my lowest limit account $1,100 of a total $25,000 across a few cards. How does closing this account affect my credit score. Three years of constant credit consiousness to get to 780 from 540, I'd hate to see a drop.

Thanks in advance! Great site. Tons of info. Props to all the contributors!

Scratch that. The sentence in the letter "You will be charged a minimum of $10 each month" does not apply to zero balance accounts. Maybe they trying to push repayments beyond the free finance period. They did tell me the account will report inactive at some point in 6-12 months while carrying that zero balance. Might have to buy the wife a lamp for Christmas.

[Anonymous]

Closing the account will not adversely impact your credit score.

Is this a credit card or is it a consumer finance account?  Your credit report should indicate one way or the other.  If it's a CFA, those can negatively impact your credit scores just by being there.  I'd close it and never look back.  There is some debate as to whether a CFA hurts your credit scores only if the account is open, or if it's closed but still present on your reports.  Either way, closing it now if it is a CFA is probably the best move.

[Anonymous]

It's a credit card. They just don't charge interest if paid in whatever time you are alloted. We had two years no interest, paid off early. Thanks for the info on the CFA's. We're pretty set in the cards we currently have, we still have low AAoA (stayed away from cards completely for a long time). Focus is on PIF, letting those cards age, and hit that magic 800 soon.

[RobertEG]

That is clearly a billing related issue on a credit card, and is thus subject to the dispute process under the Fair Credit Billing Act.

I would send them a formal dispute of the billing of an amount due on an account under which you have zero debt.

The outcome should resolve the matter and prevent reocurrence in future billing statements.

[Anonymous]

I called. Their CS must be getting a lot of calls. The $10 minimum does not apply to zero balance. The letter they sent out was worded poorly.

[Anonymous]

Wow, i was about to say...even if that was correct and you were to close it, it would still report for 10  years.