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FlyingBroke! - Rod

Help! Navy Closed All my Credit Cards!!

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Hey guys,

 

I have 3 credit cards with Navy Fed.

 

Sig. Cash Rewards

Platinum

goRewards

 

All three had a total Limit of about $70,000

 

Today I tried to used my Sig. Cash card for a purchase and it was denied!!

 

I called Navy who said that ALL my credit card accounts have been CLOSED effective Immediately!

 

I asked why?? They said that my accounts were flagged and went under a "AR" review process.... The result, they found that I have requested too many Credit Lines Increases within the last 12 months... Are you freaking kidding me!! I told them this is Ridiculous! IF you have granted me too much credit then why not do a CLD rather than just Close all my accounts. They said, that this is there new policy and same would happen to anyone who abuses their credit card products.

 

I check to see if I have an increase available once every 2 months or 90 days. I guess that was way too much for them.

 

So, I was completely livid and asked for my accounts to be reopened and escalated my call to the NFCU Security dept. I was on hold for 20min for them only tell me that they Refuse to reopen my accounts. They would only say, that I would receive a letter in the mail which would contain instructions to formally appeal in writing. Appeals over the phone would not be accepted!!! What a Joke! Are they freaking out because of the Gov. shutdown or something. OMG!

Has this every happened to anyone else... What can I do?? Help!!

 

Rod

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Sorry to hear about this. Oh man, they suck. I mean, I get that they're a generous lender and therefore valuable to a lot of people... but they suck.

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Thanks guys... I just don't understand why they would take such sever actions?? Out of that $70k I was only using about 12k in debts. I also had a $5,000 Sig Loan, which I just paid off in full today. I mean I have never ever, ever, had this happen to me by a financial inst. I have worked so so so hard to get my credit back after my BK7 in 2001 and now this! Just Sucks!

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Hi tjguitar,

 

I was using two of them regularly. I would use them for daily expenses, gas, groceries that sort thing. But I would always pay off what I used for that month with a small balance remaining. Each time I requested a CLI I would get an increase in $5,000 increments each time. I started out with $3,000 and after just two years I was up to $35,000!

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If they don't want people to get that many CLI's.... shouldn't they not approve them then? lol.

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So you took a hard when no preapproval soft was in the system every two months, or you phoned up and tried to cancel the request to avoid the hard?

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Wow, sorry to hear what happened to you. I would be livid if they did that to me. I would definitely file the formal appeal if you cannot get them to do anything now. I can understand the frequent requests for an increase would trigger an alert from them but not to shut down every card. I remember arguing with a credit analyst at a major bank in the past who said I had too many new accounts and that it looks like a high chance of fraud. So they declined me at that time. I could see that same type of thinking taking place with increasing your credit limit exposure with them. It just seems like they went too far instead of warning you or denying the increases.

 

You could always file a complaint with the Consumer Financial Protection Bureau but they would probably forward it to National Credit Union Administration, Office of Consumer Protection if they are members of NCUA. I recently filed a complaint on a different smaller credit union over opening a Rewards Checking account and telling me I was approved and then later declined. It is a long story but I finally had a call from the CEO yesterday after complaining through their Facebook page. I finally found out what happened with my appeal but my complaint is still going through the NCUA system.

 

I think for your case dealing directly with the credit union would be the best bet and escalating it to the executive office.

 

Good luck with it.

Edited by atxn

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Seems like a over reaction by them but requesting a CLI every 2 months or so is a little excessive.

 

Maybe I'm missing something but I really don't see the point of filing a compliant with any one. They have every right to close your accounts for any reason.

Edited by BRBiz

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So you took a hard when no preapproval soft was in the system every two months, or you phoned up and tried to cancel the request to avoid the hard?

Yeah, Most of the time the pre-approval offer or counter offer would be there, so hey why not right?? I would say the pre-approval would be there 90% of the time. For the few times it was not, I took the hard and they would pull TU bcuz my EQ is frozen. I would then B* off the INQ's.... I do fully admit, I was a "bit" out of control and was really pushing the envelope with Navy! I do share some blame in this! But Seriously closing all my accounts at once with absolutely NO warning at all... Just makes no sense to me. Plus, When I tried to plea my case over the phone, the Supervisor would not even hear me out. I mean they could of at least given me a warning or given me a CLD to start.

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The computer software probably flagged it as high risk because it may appear your increasing your credit lines for a future max out and BK.

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Well whatever flagged you, if they did a manual review and noticed all of the inquiries were gone off TU (and if they happened to check EX and see 31 :o ), that could very well be additional cause for alarm.

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Has your utilization gone up recently?

No not at all... In fact I just got a raise at work and I've been paying all my balances down, and in some cases in full.. So confused!

What is your utilization across all your cards? I remember reading a thread here recently about someone getting their NFCU accounts closed because of lates and balances on accounts with other creditors.

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Has your utilization gone up recently?

No not at all... In fact I just got a raise at work and I've been paying all my balances down, and in some cases in full.. So confused!

What is your utilization across all your cards? I remember reading a thread here recently about someone getting their NFCU accounts closed because of lates and balances on accounts with other creditors.

 

Mendel - I'm crazy obsessed with my credit and track everything in a master Excel spreadsheet. My UTIL right now is at 14% across all accounts.

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Well I guess the next question would be , "What DAMAGE has this done to your CR's"? And is it significant enough for other creditors to do adverse actions to your other credit products. Because I've see other people's CSs tumble like a house of cards.

 

Not trying to be overly dramatic or anything and scare you. Just hope you have more credit on your files so you won't take a huge hit by losing $70,000 off your TL's. Not to mention they're going to be reported as "Closed by creditor".

 

I don't think I'm going out on a limb by saying I don't think Navy is going to let you keep any of the cards. They are pretty Hardcore when it comes to things like this. Just cross your fingers they don't throw you out of the CU so maybe later on in a year or two you can get another card (if you still want to at that point).

 

Sorry to hear this but I guess you can look at it as a lesson learned. And by you telling us about it, you're helping a ton of others who were probably doing the same exact thing as you. Only every 4-6 months as opposed to every 2 months, LOL.

 

Good Luck.

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I do find it pretty alarming! I only recently started asking Navy for love, but I have gotten quite a bit of love from them lately. Within the last four or five months I went from $10k to $20k to $22k on one card, and from $5k to $15k to $22k on the other card. I better leave them alone for a while now that they're both sitting at $22k.

 

I'm just curious, how long have you had a relationship with Navy? Do you use their other banking products? ie: do they see money moving through a checking account, and do you keep anything on deposit with them?

 

Thanks for sharing your info... it'll definitely make me exercise a bit of caution with the button :swoon:

Edited by mrBlixx

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