Credit Cut-Off Rules New York

When a credit card issuer in New York closes an account, both you and the company have rights and obligations. Consumers concerning about these issues because they are having debt problems and are worried they will be denied future use of credit cards.

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By Steve Bucci • Bankrate.com

Credit account closure rules

Dear Debt Adviser:
When does a credit card company terminate a credit card account?
Kim Flippen

Dear Kim:
You did not specify why you asked this question, but often consumers are concerned about these issues because they are having debt problems and are worried they will be denied future use of credit cards.

You signed an agreement when you got your credit card. Locate that agreement and re-read it to find out the specifics. Each company has a different policy, and laws vary from state to state. For example, one national clothing store's agreement states:

  • We may adjust your credit limit based on your pattern of payments to us.

  • We may limit or cancel your account. If we do, you must pay us any existing balance.

Another national store's agreement specifies that they may close your account and you will be in default:

  • if you fail to make the required payment when due

  • make any false or misleading statements on your application

  • become the subject of bankruptcy or insolvency proceedings

  • die or are declared incompetent

  • if information from credit bureaus shows a serious delinquency or charge-off against you with other creditors.

Companies who have issued credit cards want to continue doing business with you. You have agreed to these terms and you should keep up your end of the bargain.

Click here to read more from Bankrate.com

Featured Local Company

Olsson & Feder LLP

(585) 563-3481
1580 Elmwood Ave
Rochester, NY
http://www.olssonfeder.com

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