1 ACCEPTED SOLUTION
Accepted Solutions
I actually own a percentage of one store and 100% of the branch store.
If that is the case, have you contacted the bank rep who handles your business banking? You don't necessarily have to make threats but that is up to you. The fact remains that the people who handle the business accounts know whether the businesses is in financial trouble or not. If the business is not in trouble, the fact that you are a sole owner of one of them should reassure Bank of America that you are not a risky customer for your personal lines.
You received adverse action for a reason. You may not agree with the reason, nor does the reason have to make any real sense. The main reason for adverse actions is to limit risk. If the bank is not aware of your personal (business) assets, it obviously has questions about your ability to repay future debt. Your personal banking profile might look risky when not taking into consideration your larger (business) financial picture.
Are you assuming these cards are business credit cards? They are not.
I am not assuming anything. I am simply assuming that what you stated was true. Maxed out cards is a sign of risky behavior. Risky behavior is a reason for adverse action.
It's a matter of poor planning with keeping track of Due Dates; this has improved!
Even though you are keeping better track of your finances recently, the record is what it is. Generally people who pay late are considered a financial risk. If you own a successful business you certainly understand that bills must be paid on time.
We've been in business for 36 years with a stellar D&B rating!
That's what I plan on doing, but I was kinda seeking advice from you experts on the best way to do this. My dad says to send them a Certified Letter and then call the phone # on the notice.
Have you considered a phone call to the person handling your business accounts? That person should be willing to intervene on your behalf with the personal side of the BoA banking relationship.
I will not jeopardize the businesses with my personal matters!
If Bank of America does not extend credit to the business, you can't jeopardize the business banking relationship. If the business does rely on BoA for credit, calling attention to the owner's financial difficulties may wave some red flags.
he's in complete agreement that it might be a time for a bank switch!
Usually people make business decisions based upon what is best for the business. If the business will benefit from changing banks I would by all means change from the bank to the CU. If the CU won't provide any positive benefits I don't see the reason for change. If the CU would provide the same or better benefits for the business and be willing to provide a couple high limit personal credit cards,that would definitely be reason enough to change. Another reason to change would be the fact that the CU president is a customer of yours and presumably could assure more personal service in the future. That would be my main consideration, when contemplating changing banks.
I would first call my BoA business rep and see if he can get my personal lines restored. Next I would call the president of the CU and ask him to issue higher limits on new personal CU cards. I would not transfer the business accounts until the CU provides high limit personal credit cards. If you want to play hardball, then play very hard ball. An owner of a million dollar business should be entitled to guarantees before switching banks.
You are doing the right thing. In addition, you are the one with the power. They need you and you do not need them. Feel good that you paid them off and found out now. Besides, when you move your business accounts to the credit union, lets see who comes begging for you to come back
The other great thing is that you helped your utilization and they are two more accounts that you will not have to worry about paying each month and you get to keep all the good history on your reports for up to 10 years.
Rudy6897 wrote:
I have 2 Bank of America credit cards. Up until a couple of weeks ago, they were maxed out. I took out a loan from my dad to pay off some credit cards,
They probably won't care, but I just gonna tell them that I'm going to take our 2 retail stores' business (one store putting over $2m in deposits yearly, the other putting over $1m in deposits) away from them.
Do you actually own the business or does your dad? If you own the business why were your Bank of America cards maxed out? Why did you have late pays on other personal tradelines? Is the business in financial trouble also? If you actually own two retail stores that do over $2m business with Bank of America why didn't you point that out to the bank?
Threatening to take your $3M business elsewhere might cause some adverse action for the business accounts. If you actually own the business, it is your prerogative to jeopardize the business in these hard financial times.
If your father (who lent you the money to pay your debts) owns the business, I hope you discussed your intentions to threaten BoA with closing the stores' accounts.
Rudy6897 wrote:
I took out a loan from my dad to pay off some credit cards, these 2 BoA cc's being the first to be paid off.
Well, I come home tonight and find I have 2 letters from BoA stating that they are "closing both accounts to future charges due to a history of late payments with other creditors."
I guess they got their money & feel I'm not a worthy customer anymore!
Bank of America got its money back on a risky account. The owner of a maxed out account has never been considered a "worthy customer". Owners of maxed out accounts that also have a history of late pays are considered risky customers. To limit risk a bank may temporarily or permanently suspend charging privileges.
BoA probably thinks that you borrowed money somewhere to pay down your BoA cards. The bank may not have seen that your other maxed out cards were paid down yet. The Bank might be waiting to see what new debt appears on your credit reports.
You say that new charges were prohibited on your BoA accounts. You didn't say that the accounts were actually closed. It is perfectly logical that BoA might want to see if any more debt pops on your credit reports before allowing you to resume making new charges on your credit cards.
In any event congrats on being debt free at least as far as your credit reports are concerned. I wouldn't be too upset about not being able to make additional charges on your BoA cards. Until you borrowed the money to pay the cards off, you weren't able to make any new charges anyway. Did your father lend you the money specifically so that you could acquire more debt on your credit cards?
I actually own a percentage of one store and 100% of the branch store.
If that is the case, have you contacted the bank rep who handles your business banking? You don't necessarily have to make threats but that is up to you. The fact remains that the people who handle the business accounts know whether the businesses is in financial trouble or not. If the business is not in trouble, the fact that you are a sole owner of one of them should reassure Bank of America that you are not a risky customer for your personal lines.
You received adverse action for a reason. You may not agree with the reason, nor does the reason have to make any real sense. The main reason for adverse actions is to limit risk. If the bank is not aware of your personal (business) assets, it obviously has questions about your ability to repay future debt. Your personal banking profile might look risky when not taking into consideration your larger (business) financial picture.
Are you assuming these cards are business credit cards? They are not.
I am not assuming anything. I am simply assuming that what you stated was true. Maxed out cards is a sign of risky behavior. Risky behavior is a reason for adverse action.
It's a matter of poor planning with keeping track of Due Dates; this has improved!
Even though you are keeping better track of your finances recently, the record is what it is. Generally people who pay late are considered a financial risk. If you own a successful business you certainly understand that bills must be paid on time.
We've been in business for 36 years with a stellar D&B rating!
That's what I plan on doing, but I was kinda seeking advice from you experts on the best way to do this. My dad says to send them a Certified Letter and then call the phone # on the notice.
Have you considered a phone call to the person handling your business accounts? That person should be willing to intervene on your behalf with the personal side of the BoA banking relationship.
I will not jeopardize the businesses with my personal matters!
If Bank of America does not extend credit to the business, you can't jeopardize the business banking relationship. If the business does rely on BoA for credit, calling attention to the owner's financial difficulties may wave some red flags.
he's in complete agreement that it might be a time for a bank switch!
Usually people make business decisions based upon what is best for the business. If the business will benefit from changing banks I would by all means change from the bank to the CU. If the CU won't provide any positive benefits I don't see the reason for change. If the CU would provide the same or better benefits for the business and be willing to provide a couple high limit personal credit cards,that would definitely be reason enough to change. Another reason to change would be the fact that the CU president is a customer of yours and presumably could assure more personal service in the future. That would be my main consideration, when contemplating changing banks.
I would first call my BoA business rep and see if he can get my personal lines restored. Next I would call the president of the CU and ask him to issue higher limits on new personal CU cards. I would not transfer the business accounts until the CU provides high limit personal credit cards. If you want to play hardball, then play very hard ball. An owner of a million dollar business should be entitled to guarantees before switching banks.