I have had a credit line of $25,000 with Capital One Bank for over 15 years along with a Checking and Savings accounts. I received a letter from them on Dec 21st stating that they are closing my Credit Line. I have been an excellent customer over the years and always paid my credit line on time. It is outrageous that with out any formal process, Capital One decided to unilaterally close my line. During the holiday season, during the Covid pandemic, for no reason. I have called Capital One, gone to the branch, spoken to numerous people at Capital One. The only thing they can say is “sorry, that is the decision of the Bank. ” They offered to take my information and file a complaint with the bank, and that within 20 business days I should hear from someone, that is completely unacceptable. Has anyone else recently had a similar experience?
It’s definitely in your loan agreement that you probably signed without reading. Banks get nervous during uncertain economic times and start pulling back any unsecured open credit lines they can. They would rather close the line and lose a customer than have the line get maxed out and go into default. It sucks but they do it all the time.
While it is unfortunate, your experience is not unusual or uncommon during times like this. Banks that extend credit have been reducing their credit lines overall, to protect them from potential risk and exposure to default. Not to say that you personally would be a problem, but perhaps your credit fits a profile of a higher risk group.
There have been many people writing in to reddit over the the past several months to say that their credit card lines have been drastically reduced or discontinued, so it’s not just you. It’s the company reacting to adverse market conditions.
I understand what you are saying completely. I hate that banks can do this as well. But there usually is a part in your agreement that says the bank can close your account at any time for any reason.
Yes, people have had similar experiences, a business can choose who they do business with. You didn’t ask any other questions in your post.
Has it been awhile since you used the card? Sometimes they close inactive accounts.
While I can’t speak for Cap One, a bank that I worked for would reevaluate their personal lines every three years and determine whether they would continue or close it. This isn’t uncommon and would have been explained in the initial agreement.
Sometimes they can close the credit line if they pull a credit check and there was a change with your credit report and they don’t like something. They could put it in a “pay down period” where you make payments only and no advances for a little while. If that’s mot the case then maybe the loan is just up and needs renewed. Our HELOCs have expiration dates.