Q: Can a credit card company close your account when you have been making payments every month? The balance is high, but I have been paying it down.
@DRoy09 via Twitter
A: Sorry to tell you, but yes, the credit card company can close your account, and plenty are doing just that in this recession. Credit issuers are in a panic because credit card defaults continue to rise. So they are sweeping up their cards and taking them away, even from people who, a few years ago, they considered stellar.
Nationally, the bankcard delinquency rate (the ratio of bankcard borrowers 90 days or more delinquent on one or more of their cards) increased to 1.32% in the first quarter of 2009, up 9.1% over the previous quarter, according to TransUnion, one of the three major credit reporting agencies. Year over year, bankcard delinquencies increased 11%, from 1.19% to 1.32%.
To add insult to injury, according to Regulation B of the Equal Credit Opportunity Act, a creditor only has to notify you of an adverse action within 30 days after the action on an existing account has been taken.
But, you know what? If this credit company doesn’t want you, so be it. Cash is better than credit anyway!