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Opinions on Whether I should close prior to default?

Date: Wed, 07/28/2010 - 06:34

Submitted by rown
on Wed, 07/28/2010 - 06:34

Posts: 70 Credits: [Donate]

Total Replies: 4


Soliciting opinipns please.

Im about to default on several cards to try and facilitate settlement.

Question is if I "close the acct" prior to default will that eliminate their ability to add overlimit fees? I know they can still add their late fee as I will, in fact be late, but if I dont have a "credit limit" can they reasonably add overlimit fees? I know they usually close them for you when you get behind enough.

Im mainly aiming to be reducing (very slightly) the staggering speed with which defaulted accts usually balloon up with all the fees.

Is there a "downside" to closing an acct with a balance on it?


I don't think it matters either way. If you're going to negotiate settlement, you'll be, in affect, eliminating those charges anyway - and they will close your account automatically. If they set you up on a hardship program to repay the debt, they'll also close the account.

Additionally, the credit card act of 2009 limits over-the-limit fees to cases where the consumer has given permission. To me, this means an interest charge and/or a late charge can't cause you to be charged and OTL fee. Of course, I'm not an attorney. :)


lrhall41

Submitted by OhioGal1 on Wed, 07/28/2010 - 06:45

( Posts: 5253 | Credits: )


Quote:

Originally Posted by dantheman
I say do not close. Sometimes, they will make you an offer and part of what you give is to agree to close the account. It is a negotiating factor.



Interesting. Thanks for the info. I had no idea this was even an issue. I thought they always closed it at will. Ive already had one I was only about 5 days behind on tell me they would close my acct if I got any further behind.

Big meanies!


lrhall41

Submitted by rown on Wed, 07/28/2010 - 11:50

( Posts: 70 | Credits: )