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#1220654 - 07/22/09 06:18 PM Closing an unused credit card
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Are there any regulations that deal with closing an unused credit card. Basically, customer opens the card and does not use it and bank wants to close it. The contract does not have any language regarding closing the card.

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#1220751 - 07/22/09 08:09 PM Re: Closing an unused credit card Random
tyond Offline
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I've not seen anything that would prohibit closure due to inactivity. We've closed accounts that were inactive for 6 months or we did not renew at expiration. This is not an adverse action according to Reg B (see definitions under sec. 202.2(c.2.ii)) for required notification. Depending our your customer relationship point of view, you may want to go ahead and send them a letter anyway after you've closed it.

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#1220813 - 07/22/09 08:51 PM Re: Closing an unused credit card tyond
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make sure you're within the current (and, when applicable) 7/1/2010 version of 226.11(b) and be aware that examiners are paying closer attention to potential disparate impact/redlining regarding credit limit reductions and [presumably] closures....
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#1220824 - 07/22/09 09:12 PM Re: Closing an unused credit card Phoenix
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It looks like there is no notice required by the new cc rules.

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#1250322 - 09/15/09 05:18 PM Re: Closing an unused credit card Random
mbernard Offline
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So, we don't have to provide the consumer notice by reglaiton if we close their CC? But a letter is a good idea. Am I understanding this correctly? It does not adversely affect the consuemr to close the CC?

Thanks!

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#1250472 - 09/15/09 07:55 PM Re: Closing an unused credit card mbernard
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Not if the account is inactive, but if you terminate an active account you would have send an adverse action.

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#1250589 - 09/15/09 09:35 PM Re: Closing an unused credit card Random
mbernard Offline
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Thanks!

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