Comments on: Beware of the Closed Credit Card Account!

By: kitty

kitty — Thu, 27 Mar 2008 17:16:37 +0000

“Just another sneaky way for the credit card companies to stick it to their “best customers.”

Why is it snicky? It is actually pretty convenient if you have an ongoing relationship with a merchant or use your credit card to pay some bills. You don’t want your bills to bounce or remember to update merchant information every time. It isn’t the issue when you close card, only when your old one expires. If you terminated the relationship with a merchant and they are still charging you, take it up with the merchant, or/and call the CC to put stop payment. Works fine.

By: hank

hank — Tue, 25 Mar 2008 03:55:59 +0000

Yea, I was about to say the same as Rob. Basically to add-on. If you’re not happy, call them, if they don’t change what you want them to, ditch them. There are plenty of places out there willing to take on your debt these days.

By: Rob

Rob — Mon, 24 Mar 2008 23:00:28 +0000

I forgot to add that I think this applies mostly to cards that have been re-issued due to impending expiration.

But if you are concerned, call your credit card company. They’ll set you straight.

By: Rob

Rob — Mon, 24 Mar 2008 22:58:46 +0000

I’ve known about this policy for a while, but I’ve never been concerned about it. Why? Well because in the event that you have to report a card missing or that fraudulent charges have been placed on your account, when you contact the card company they are usually very good about placing a hold/block/flag on particular merchants. And I don’t think this policy applies to cards that have been reported stolen and been re-issued. I know credit cards in and of themselves are evil,.. but not all credit card companies are.

By: Heidi

Heidi — Mon, 24 Mar 2008 18:52:56 +0000

Wow. I didn’t know about this – smart for Discover, crappy for the consumer.

By: Debt Free Revolution

Debt Free Revolution — Mon, 24 Mar 2008 17:09:35 +0000

Hmmphf. Just another sneaky way for the credit card companies to stick it to their “best customers.” So glad I threw the credit cards out, and not just the fine print papers!

By: Mom@wide open wallet

Mom@wide open wallet — Mon, 24 Mar 2008 16:19:43 +0000

Yeah, all the credit card companies do that. It protects the merchant and gives credit cards a level of safety for the merchant that checks don’t have. Notice how leery places are with accepting checks but they will take a credit card without even checking ID. If you enter into a contract with a merchant, like a gym, to pay for one year the credit card company can’t intervene in that. You can’t just cancel your card to get out of the contract.

It does make a sticky mess if the charge is fraudulent though.

By: Jennifer

Jennifer — Mon, 24 Mar 2008 10:04:50 +0000

Unfortunately, Discover was already doing that, they’ve only just added it to their terms. I’ve had them let a merchant with expired numbers put through automatic payments in the past. Luckily it was someone I had authorized and not a fraud payment!

By: SingleGuyMoney

SingleGuyMoney — Mon, 24 Mar 2008 10:03:04 +0000

Thanks for the heads up on this Clever Dude. I admit that I don’t read all the terms and conditions that come with my credit card either.