Bank of America Closing Some Credit Card Accounts (Limit Of Four?)

There has been multiple reports in the last 48 hours of Bank of America closing some credit card accounts (here, here & there). At this stage we aren’t 100% sure why accounts are being closed, regular customer service representatives are unable to provide any details – simply telling customers that they will receive a letter in the next few days explaining the decision.

All of the data points I’ve seen seem to remove accounts so that the consumer has a maximum of four open credit cards (e.g if they had ten, six will be close). They seem to be closing cards with the lowest credit limit first (e.g if you have cards with limits of $10k, $5k, $4k, $4k, $4k, $8k, $3k then they’d close the 3k account first and then the 4k accounts until you had a total of four open credit cards).

It’s also unclear how you’ll be able to pay existing balances on the card and if your rewards will be forfeited or not. Please share your datapoints in the comments below, we will update this post as the story develops.

80
Leave a Reply

avatar
 

  Subscribe  
newest oldest most voted
Notify of
Dino
Dino

Bank of America just closed both my credit card accounts that I have had for almost 22 years! My financial status has not changed. I have never been delinquent or kept a high balance. My FICO score is 830. They refuse to give me a reason so I am reporting them to the BBB, Consumer Affairs, The FTC, The Department of Banking and Insurance and The US Attorney General. Something fishy is going on with this banking institution again and we all need to know about it. Btw: It did affect my FICO Score by 20 points!

Pamela
Pamela

My mother just had her one Alaska cc cancelled for no apparent reason and when she called to inquire why, no straight answer. Like yourself, never late on a payment and paid off balance every month, FICO over 820. Now come to find Merrill Lynch is owned by BOA and they closed 2 of her investment accounts (Over $200K total) which brought me to the internet to see if there were others experiencing this. We spent over an hour with a Wells Fargo financial adviser (great service from him) on the phone with Merrill Lynch trying to find out why her investment accounts were closed, with no authorization took out 10% in taxes and charged her $75 for each account to close it. Not sure what’s going on with Merrill Lynch, but was told it was a “business decision” by BOA. The rep kept at that as the reason and nothing more. After being on hold and transferred three times with each rep putting us on hold to “look into this,” did the Wells Fargo adviser say something was fishy and that he’s never seen in his 20 years where investment accounts were closed and a credit card. My mother is turning 70 this year and doesn’t know what to do and where to file a complaint and neither do I. Reading your post, thank you for giving me some avenues to file a complaint. I don’t care how long it takes me to do it, it will be done. I really hope anyone else who reads this and if beyond pissed takes time to file complaints against BOA. I’m going to write Alaska Airlines and inform them of this to their loyal flyers and encourage them to look into this bad business practice and move the Alaska Airlines credit card to another financial institution.

Eula
Eula

Pamela
There most be more to the story. Who was actively managing the accounts and credit card and how long was it open? And what does Wells Fargo got to do with it? Also $75 fee makes no sense since the closing fee is only $50.

Pamela
Pamela

There is two issues here: I’m up for advice if this is a legal practice, if anything can be done because doing research Bank of America is doing this to a lot of loyal customers (more so closing credit cards) which is bizarre and as the daughter, something I don’t get being my mother has had an Alaska Airlines Bank of America credit card and been with Merrill Edge for over 20 years: 1.) The credit card was an Alaska Airlines credit card payed in full monthly to Bank of America. She found in Dec 2018 they closed it. Called on it and nobody would tell her. Pays her bills in full, 820+ credit score, doing just fine financially, never late on any payments, etc… 2.) Merrill Edge who is owned by B of A. I have a copy of her final statement where I see a $75 was taken out and listed as “Final Fee” to close my mothers accounts. Below that lists FED Tax-normal where they took out 10% and below that lists the Normal Close Out in the amount of what was remaining in her account minus the close out fee ($75) and 10% tax withheld. How can a company charge you $75 per account to close your accounts you didn’t want closed and had no knowledge it was closed? Why was 10% taken out when I was deposited within the 60 days for a transfer? Shouldn’t that be reimbursed? Wells Fargo only came in because she knew she had to put the money in within 60 days and met with a WF Advisor who she moved the IRA accounts with that were closed by Merrill Edge. The adviser having been in the industry 20+ years and had never see/heard of this happening to anyone tried to help her figure out why they took out 10% for taxes when the two checks from her two accounts closed were mailed to her was deposited within 60 days into another IRA. I was on the call when the call was placed to Merrill Edge and we were told it was a business decision by Bank of America since they owned Merrill Edge. Getting transferred three times and placed on hold for a lengthy period of time, it was scripted by each representative we got transferred to that it was a “business decision” and not a one would elaborate when… Read more »

Ann
Ann

Every financial institution has the right to choose who to start/continue to do business with, in an attempt to reduce their risks. Sometimes their algorithms make mistakes and it can be a nightmare to get corrected, but they can certainly close investment accounts just as readily as they close credit card accounts if they think they don’t like you anymore. For example, I know some people who have tried to log onto their investment accounts at certain brokerages while traveling outside of the US have been locked out of their accounts until they could return to the US and provide proof; if not done in a timely manner, their accounts would have been completely shut down.

Todd
Todd

Pamela

The 10% tax withholding is common practice, it’s an annoyance but if you rolled the funds over within 60 days you’ll get the money back when doing your next tax return.

Your story reminds me of this:
https://www.kansascity.com/news/business/article215688615.html

Is it possible that they sent your mom a letter that was ignored because it looked like a scam?

Keep us posted.

JN
JN

If anything, it seems like the BoA credit card crackdown is getting even stricter.

New Travel Rewards May 2017.
New Cash Rewards May 2017.
Applied for MLB Mastercard June 2017, first approved, then denied on review.
Decreased the credit lines on both current cards to increase chances of success on reconsideration.
Reconsidered for MLB Mastercard August 2017, denied again.

Both times the MLB Card was denied due to “already have sufficient number of cards with BoA.” So despite excellent credit and perfect payment history with BoA, they will not let me have a third credit card. Quite a drastic change from the company that used to approve a dozen cards at once for some customers.

Ruben
Ruben

Hello, I just want to share my experience with Bank of America Premium Rewards Card. I was offered the credit card offer which means I was not looking for new offer, but was approached by them, I got attracted by this offer and I was approved, what happened then is I have paid the annual fee of $95 and suddenly in 2 weeks my account was closed. Then I was told that i need to provide 2 forms of ID and tax return in order to reopen the account – I did it and I was told that I am not told that they cannot verify my account … What is more the offer that attracted me to apply for this card was 50 000 points if I spent 3000$, which is what I did but now as my account is closed I cannot redeem these points. You can understand my frustration and misleading offer – from my “experience” with your bank i lost 100 $ in fee + 500$ in points and I was never given any explanation why my account is closed. Can you please give me an advice about what my further actions could be? Thank you in advance!

Rips
Rips

DP:

Just want to share my experience in Alaska cc

#1 Alaska CC (approved in June 1 2016, closed Dec 2016)
#2 Alaska CC (approved in June 1 2016, closed in Mar 2017)
#3 Alaska CC (approved in Aug 1 2016, closed in Mar 2017)
#4 Alaska CC (approved in Aug 1 2016, currently active)

I have BOA checking account for 15+ years and only 1 active Alaska CC from Aug 2016
and no other BOA cc.

I applied for another BOA in mid May 2017, instant approval for $18k,
received the card and activated it in around 1-2 weeks.

I brought this card with me to an overseas trip, setup the travel
notification online and thought everything should be fine. The card was declined
2 times during the trip so I used my AMEX during the trip.

Came back to US and called the CS and the told me they have closed my account and sent a letter
on June 6 (which I never receive as of today), as they said I had 4 BOA cc since June 2016.
The approval of the 5th one was a mistake.

I know BOA limit the no. of cc to 4 earlier this year, so didn’t expect that included closed account.
I asked them what’s the limit of cc I can apply/have for now and they wouldn’t confirm it.

They said they won’t discourage ppl from applying their cc but can’t comment whether they will
close it immediately.

Good luck guys with BOA cc. I guess if you’re approved cc doesn’t mean they wont close it right after.

Vijay
Vijay

Today, I got letters from BOA stating they are closing all of my pending 5 credit cards with them now. The reason they have mentioned is clueless ‘we’ve found your account as delinquent’. Basically, they are shutting down all the credit cards I have with them….anyone got such letters?

William, I know its going to affect my credit history, what are my options? filing a CFPB complaint will help?

Vijay
Vijay

Hi William,

Any advise for me for my situation. Bank of America has put a ‘missed payment’ negative mark in my credit report, after they closed my account which had a balance where I cannot able to make payment since they closed it without notice. I went to the branch and they have no idea on how to deal with this situation and the banker called BOA credit card CS and they are also not aware of this and asked me to wait for any future letter/communication (I don’t know what it means). All I got is the account closure letter from BOA, can I be able to dispute this negative remark with the BOA letter I received OR can I file a CFBC ? and will find success in doing so?

Thanks!

Dirah
Dirah

I had an account closed with over 75K Merril Points.
Are they somehow recoverable, or gone?

Steve
Steve

What ended up happening with your Merrill points?

JP
JP

any communications from BOA?

Vijay
Vijay

Did anyone got any letter until now? BOA closed 2 of of my MLB cards which has a balance and yet to get any communication from them. Don’t know how to pay it off since the cards are closed and invisible.

NoVA Eric
NoVA Eric

No, no letter yet for either my or my wife’s closed accounts. I think she had a negative balance of a few dollars on one account; I assume BoA is legally required to give us a refund check for that. Given that it’s been a couple weeks, I would have expected some kind of communication from them by now.

Ryan
Ryan

Opening a whole bunch of cards for bonuses is going to get you shut down. Banks are now changing the way they handle customers who do this.

Ryan
Ryan

Why would your wife have 8 Bank of America cards, poster above? That’s just crazy.

NoVA Eric
NoVA Eric

Because BoA paid us over $2500 (two thousand five hundred US dollars) to do it.