Can Sears/Citi Bank close your account for no activity?

Unfortunately the creditors have the right to do that.:( She can call sears / citi up and try to apply for another card with them if he or she wishes.

mobile is right,every credit card has that
clause.where they can suspend or revoke accounts
without notice.

wow, but what about the report on the credit files, Im not sure if that is fair or not, what do you think?

Believe me you are preaching to the quire. I totally agree . Its not fair , but it is legal and there is no way around it reporting on the their credit report as a closed account. :(

So a closed account is better than an write off, etc and since they did it and not here maybe it is not as bad as it sounds. Still her Fico scores suffers. I find it sad that if you pay your bill on time, a long customer and you decided to pull back for some time, then they cut you off. Maybe she is better for it.


Luke

I was hoping to tell her better news tommorow, but maybe she should just leave it and get her 3 credit reports in a few weeks to see what is really on there and take it from there. What do you all think?


luke

Sounds good. Trust me she shouldn`t miss it. Sears charges around a 21% apr anyways.

Very true mobile, and they have gotten in so much trouble for illegal services such as tires, etc in the last few years they are only a shell of what they use to be anyway.

The fact that the credit card is closed, of itself, isn't affecting her credit score. What happens though, is that her total available credit went down when that account was closed, and so now there is a higher percentage of current-balance-to-available balance among all her open accounts. -- That percentage going up is what may be dropping her credit score, especially if it went up over 35%.

For example (and just to make this easy), suppose she only had two credit cards: 1) $1000 limit with Chase that had an $800 balance; and $5000 limit with Sears that had $0 balance. Her total available would be $6000, where total balances are $800. That makes her debt percentage (800/6000) = 13%, which is a safe number for the credit score.

When Sears closed the card, the Total Available became $1000, the balance stayed the same at $800; the new percentage (800/1000) = 80%, which is a very bad number for the credit score.

The fill the gap and make the available balance what it used to be, tell her to open up another credit card that had the same credit limit as Sears did (or she can apply at Sears again...).

Special comments like "account closed by consumer" or "account closed by credit grantor" DO NOT factor into the score. That's all they are -- just comments. If they account has a satisfactory status, then the only thing affecting the score is that the total available went down.

Almost every credit card issuer has the right to close due to inactivity. Use your cards at least once every three months to avoid this.The person involved may have a chance to phone creditor and reopen account so they can keep the account with the current age.

And that is another reason not to get a charge card. :)

I have had my Sears card for over 10 years, use it every few months, never been late, never been over. My credit isn't great but it isn't terrible, my bad habit has been to keep my cards high (which I am working on!) A few years ago they reduced my credit amount from 500 down to 250 because of that. I've never understoon that .... they are making money off of me by keeping a balance on a card, I've never been late etc, and they reduce my credit line? I HARDLY use the card now, and when I do, I pay it all off the next month, so now they get no interest from me at all.

Thanks everyone for your advise, etc. I will pass this on to my friend.

Thanks

I know someone who had a $8,500 limit on citi finance backed card and just got letter that credit line reduced to $5,000 because they reviewed his credit again and says he has too much credit(no late payments and is nowhere near limit)these companies are tightening up the purse strings on what is not profitable or is too risky for them and even though I disagree with many of their tactics I also know that they are just trying to do all they can to survive and maintain profits in todays ecomony :D

I rather doubt that Citi is having any trouble turning a profit.

I have six figure available credit & don't make that yearly.My creditors have not reduced me yet,but I am being careful of what I use my lines for in this dreadful credit crunch.

thought I'd also mention that my Chase card had a $30,000 credit limit which I'd run up, finally paid it all off, and they reduced my credit limit to $3,000. Was never late, always paid at least the minimum, didn't earn ANY "points", I just let my credit get out of hand. And having the credit limit cut like that REALLY made me angry but there is nothing that the consumer can do.

Another thing to consider... if they perform any adverse action against your account, such as closing your account or reducing your credit limit, then they have to follow Reg B and send you the required written notices. If they don't give you those disclosures, mainly the reason(s) why they performed such adverse action, then you could go after them for violating the ECOA.

My friend got these notices the day she found out that Sears/Citi bank closed her account in that same letter....I mean, how rude is that. She got on the same day, We are closing your account because.....! The only way to stop this horrible treatment is to "GET RID OF YOUR CREDIT CARDS, CUT THEM UP, NEVER USE THEM AGAIN, BUT KEEP YOUR ACCOUNTS OPEN FOR YOUR FICO SCORE" Use them for a change.

Luke

no Wulf..citi is not having probs returning profit...they simply aren't NOW making the profits they... a year in advance reported and projected!...becuz you say you work for big company..I am sure you realize the politics involved!.I personally know of three people that citi..closed their citi finance options to...I personally saw correspondence business received dealing with them and saw correspondence they sent to creditor...(someone I know who has a Shell and Sears card from them..but also supposedly defaulted on a mervyn's card from them in the 80's....but I also see citi's point..people across America are NOT fulfilling the AGREEMENT THEY MADE ....in the aftermath..people who did..and did not leave a balance on card and subsequently make them (CITI)money are KICKED TO THA CURB! years later of course!!! :D

also..Unc..have you ever dealt with Citi in any of their entities?
your doubts are very strange considering what my knowledge has been in past 3 months....Citi bailing out from partnerships they previously made withothers..if it doesn't make them money after they got rid of new person in charge..they don't care!!!!!! about who they end up screwing!!!!

p.s uncle..this is what I found on easy web search

Saturday, January 12, 2008
Is Citibank In Financial Trouble, China/Kuwait Rush Cash?

It wasn't that long ago that Citibank dispatched Robert Rubin to some Arab country in search of much needed cash to bail one of Americans largest banks out of financial difficulty because of the sub prime mortgage market. Then there are rumors today that Citibank is also in talks with China and Kuwait to give them even more cash, around $14 billion to be exact. There is something bad happening under the surface of the U.S. economy and Citibank may be the leading indicator as to what is wrong. For too many years, the American people have followed the lead of the U.S. government and spent well beyond their means.

While no one wants to talk about this problem publicly, in reality the United States of America is in a sad state of affairs, financially, right now because politicians and regular everyday citizens do not understand what it means to save money. The U.S. economy has been held in check from recession for years now by a consumer driven market of ever increasing spending and soon something will have to give and that will most likely be our own wallets. For most Americans, the problems at Citibank do not seem important to them. However, in reality the problems at a huge bank like Citibank are one of the most important things in their financial future.

The United States has not operated on a pay as you go system for a long time now. Instead, our economy and really our whole way of life is built on a credit system of buy now and pay later. When huge credit lenders like Citibank become so strapped for cash they they must go begging to foreign nations like China to bail them out, then the whole U.S. economy is in real danger of slipping into recession or even worse, depression. In the old days people use to look to General Motor as a guide of what was happening in the U.S. economy. Today, many people like myself look to large banks like Citibank to give us insight into what is happening behind the curtains of a complex and intertwined U.S. economy.

Keep a close eye on Citibank because I believe in this new Millennium, that one company might be the new General Motors to help the average American understand what is happening in the U.S. economy.

Read more about the Economy:

Countrywide CEO Angelo Mozilo's $100 Million Severance
Michael Dell Rebuilding His Computer Company
Wall Street Could Once Again Face - 'Black Monday'
Are American's Recession Fears Justified?
Stan O'Neal's 'Golden Parachute' Worth $160 Million

January 12, 2008 Archives

Posted by Mark Hutcherson at 11:54 PM

Sphere: Related Content

StumbleUpon

Site Meter
Newer Post Older Post Home
May 2008 Stories By Date:
01, 02, 03, 04, 05, 06, 07, 08, 09, 10
11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21
22, 23, 24, 25, 26, 27, 28, 29, 30, 31
June 2008 Stories By Date:
01, 02, 03, 04, 05, 06, 07, 08, 09, 10
11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21
22, 23, 24, 25, 26, 27, 28, 29, 30, 31
Hutch Re

I have not had any adverse action to date,but the creditors in this current economy are very nervous.

People, If I have one thing to say "get out of debt now, I know it is hard, but DO IT" I have always known that soon all Americans will have to pay off their debt at once, no matter what and how much, or will face unbelievable problems, odds. Our goverment, at any time, can force our credit card companies to make us pay-in-full at once. The IRS has done it for years and the credit card companies, in time, will have this same "privlage". FEMA can and will step in, and when all is fails, will have the govermental right to seize any and all "monies" accounts, liguid or solid accounts and use them to "Save America" from a financial meltdown even worse than the Depression. Do your utmost best now to get out of debt, get off the "Debt Grid", and watch your bank accounts VERY CAREFULLY!!


Luke
(these are my opinions and may or may not be shared by those here on this site)

they sent something to me after I called an enquired when I was checking my account online (which I never used to do, now it is a DAILY THING with me!). Does that count?

CITI BANK LOSSES they admitted to is what brought stock market under 12,000...this week
citi is in big trouble as all lenders and banks are
I know someone who just bought house for $160,00 and bank paid all closing fees..
people who went into foreclosure and owned the house previously owed over $280,000 on this home..
banks and lending institutions are all in a scramble...they will keep losing until this all gets straightened out..in meantime anyone who needs small loans are not gonna get them..they aren't giving unless it's a SURE THING....if you owe more on your house than it is now worth..where did your collateral go? CREDIT SQUEEZE is here to stay until real estate or something else turns this deal around :shock:

someone said statement above//===

"I rather doubt that Citi is having any trouble turning a profit. "

does they have any doubt now? months later after gov gave them bailout money after poster posted doubt that citi was having any troubles========and now they need more $ from taxpayers to stay afloat...one person on cnn stated that same week citi was asking for more money==they sent credit card holders new interest rates on their balances==highly inflated===??

Posted: Thu Jun 12, 2008 3:43 am Subject:

--------------------------------------------------------------------------------
unc your advice and wisdom here admired by all---you said--
I rather doubt that Citi is having any trouble turning a profit.
uhm...now shares selling for less than a buck??? you were new guru on site heh-heh ! I say be CAREFUL watch out who you follow and befreind here and believe here !!!!!! research research research and the ones they ostiscise or who leave on their own accord are the ones in my opinion offering true beliefs and true reasons for being here but don't take anything at face value..unc stated his honest opinion and we could have all held onto that fact and invested heavily into citi stock but ohmahgod look at us now if we had followed his sage advice? where is uncadunk now when we need him to tell us what stock to invest in next hee-hee

[samebox:d53cb6a651="NASCAR_Devil"]Why in the hell are you posting to this thread from June of 08? You have nothing constructive to add to this post or this forum. Begone Toad!!![/samebox:d53cb6a651]

HE LEFT TO WORK FOR CRAMER LOL ROFLMAO!!!!!!!!!!!!!! let's all buy CITI STOCK GET THE HECK OUT OF MY WAY I'LL KNOCK YOU DOWN BEOTCH HEEEEEEEEEE___HEEEEEEE what a freaking joke that poster was!!!!!!

OKAY MY QUESTION---SHOULD ANYONE HERE RELY UPON SOME SITE LONG TIME--MODS WHO ARE POSTING FOR PENNIES ?OR INSTEAD DO RESEASRCH FOR THEMSELVES AND FIND OUT THE REAL TRUTH? WHY SHOULD PEOPLE FIND THIS SITE AND DEPEND ON PROVEN LIARS AND DRAMA QUEENS HERE? IF SOMEONE IS IN DEBT THEY DONT NEED THAT CRAP FROM KAREN BOSSY MUCHO DRAMA QUEEN----AND TANIA (LOST IN TRANSLATION--R.E.COMMEN SENSE?")THEY JUST NEED THE HELP THAT HTE SITE USED TO HONESTLY GIVE JMO

You opinion is neither needed nor wanted. Run along now jerk!

It is amazing how right I was to post what I did above in June of last year. Man was I right!? Get out of debt asap!!

change your name to Luke Future Teller!

ok, I just might

OK, I just might

good luck to all who try to help here and I do not wish good luck to those common posters here who attack others for disagreeing with their opinions...some mods above posted very very wrong statements and 666 devil nascar is calling others toads? cuz he don't like it when the guru's are called out for being total idiots? sorry that is what is wrong here and why so many people who posted often left in a huge exodus...too many cliques and picked on if you didn't join the right club...where have most of the good posters gone? gave up this place ..yah call me a toad 666 it's all good :-) LUKE you made a very good post!!! keep it up and keep fighting the good fight!!!

MY RESPONSE TO THIS PEOPLE POSTED AFTER THE THREAD WAS DEAD BECAUSE THE MODS HAD NO CLUE AS TO WHAT WAS RELLY GOING ON?? AND THEN THE NEW POSTERS GOT ATTACKED FOR BRING IT UP AND MENTIONING THAT THE MODS NO LONGER HERE WERE VERY VERY WRONG??????? wtf???????????????

f-u mods here f-u we dont need your help you already dogged our cries for help we got ignored and WERE OF COURSE!!!!!!!treated with disrespect on this site..now we will receive vindication ad awareness from local newspaper and web site!!!!!!!!!!

wow !!!!!!if one reads this post they will see a very clear prediction on the real estate meltdown and the prelude to the recession we are living now
thanks debt consolidation for a true look from posters who knew and posted and dealt with it first hand before it spread across America! The predictions and many opinions above are a true reflection of our economy today :-)

I agree with the above post----it is almost CREEPY the---predictions and facts that some normal down home--people posted and knew what was really going on at the same time most fellow Americans were in a trance or something and the financial experts were in denial and still trying to reep the gluttony of profits before the house of cards FELL DOWN!!!!?... Hope that the recovery is really happening now...do posters here finally know how much Global money is involved in
American credit card debt??? I hope the above facts at least hit home to one person visiting this site :-)