Credit Card Revoked

[tina martinez]

Hello, I am from California and had a question regarding a credit card that was issued to me two weeks ago, I received
it and have only charged $350.00 on it (xmas gifts) and everything was fine until today when I went to charge $15.00
and it was denied, so I call the company and they told me that they closed the account and would not tell me why. I have or should say had a credit limit of $1,000.00. Can they close it like that. To me they should tell me why they
closed it. Any answers would be appreciated.

 

[I AM ALWAYS LIABLE]

Hello, I am from California and had a question regarding a credit card that was issued to me two weeks ago, I received
it and have only charged $350.00 on it (xmas gifts) and everything was fine until today when I went to charge $15.00
and it was denied, so I call the company and they told me that they closed the account and would not tell me why. I have or should say had a credit limit of $1,000.00. Can they close it like that. To me they should tell me why they
closed it. Any answers would be appreciated.

My response:

The decision to afford credit is always at the behest of the creditor. At any time, if they feel a person presents more of a risk than they had bargained for, they have an absolute right to "cut their potential losses" and withdraw your privileges.

When it is possible that a "risk person" can theoretically make charges that the creditor is not willing to bear, prior to mail notification; e.g., it could take two or more days for mail notice to get to you, you could charge your credit to the maximum. And they, for some business reason, were not willing to take that risk. So, yes, they can cut you off without Notice.

If you look at your credit agreement that you signed, it will tell you that they reserve the right to withdraw your privilege of credit at any time, without notice.

The actual card, itself, also belongs to them.

IAAL