mortgage company cancels my credit cards - can they do that?

[jcconkright]

What is the name of your state? Texas

We recently refinanced our home in order to pay off our credit card debt. Withouth our permission - there is nothing in writing and we were not told - the new mortgage company sent a letter to the credit card companies we were paying off at closing requesting that they cancel our credit. I called one credit card company and they said that I had requested it be cancelled - which I did not. Can they legally do this? Do I have any recourse?

 

[nextwife]

The whole POINT to a debt consolidation loan is to MOVE your higher interest debt to a lower interest junior loan. The intent is to get RID of that debt, not allow you to run it up again! The loan is underwriten on the basis of this loan REPLACING the prior debt. If you have free reign to run it up again, the debt ratios get skewed.

I am sure if you go through all your closing agreements, there is some language about closing those cards.