Discover closed my account

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  • I just got an email from Discover Card that they closed my account.  I've never missed (or been late on) a payment.  I guess it's because I entered into this program.  I wasn't expecting this.  Is this typical? 
  • I don't think so. I had a battle with Washington Mutual over my account with them once I entered the program. The statements they sent kept saying I was not making my minimum balance payment even though I was paying MORE than the agreed upon payment through CareOne. After several months they closed my account due to this. They have fixed their records to show I was making the correct payments, but the account is still closed. I am continuing to fight them on this. It is my understanding that having a credit card account with a balance owed closed by the creditor can drop your credit score up to 30 points! I am trying to improve my credit, not watch it sink further!!! I would fight them on this or remove them from this program (assuming they will 'open' the account if you do). It could hurt you more by consolidating... Good Luck!
  • I believe every creditor takes actions when it comes to having one of their accounts placed in a debt management program.  For me, I received three (3) letters from FIA Card Services that oversee the Bank of America accounts and they just accepted the terms of the proposals effective 12/20/08.  With this acceptance, I am no longer protected under their Credit Protection Insurance Program and they have removed my remaining available credit lines, which means that I am no longer allowed to use the accounts until further notice.  So for me, my accounts are temporary closed.

    Probably within the next billing cycles, I will see changes to my credit reports indicating that I am on this program. 

  • Yes, this is typical.  If you look at your contract with Care One and your creditors under the program, it states accounts will be closed.  I closed all of my accounts prior to entering debt management as it reports to credit reporting agencies that I requested the account closed rather that the credit card companies.  The point is to reduce and eliminate debt and not to incur new debt under this plan. 
  • Again, dodgefan is correct. Most creditors close your accounts or at least suspend them once you sign up for the program to ensure that you don't get into new debt while trying to get out of the old debt. Once you've completed the program and paid off your debt, you're free to apply again. Hopefully then your credit will have improved dramatically enough so that you get a better APR.
  • Actually yes it is typical. If you called in to start your program as I did, my agent told me from get go that all creditors that I owe will be closed to prevent any usage by the cards. That way people dont get the benefits of careone AND still spend as they did. Its nice too for me at least so I dont have to worry with the fact once I'm paid off I'm done with the creditors completely and my credit will reflect that
  • I just enetered the care one program. And I have two accounters (Capital One being one of them) telling me that they will close my account with them as soon as the debt has been paid off. Is there a way to prevent this? Can I still have my card after I am done paying them?
  • I dont think so.  What happened to me was I had 4 credit cards on the program and after the companies accepted, my accounts were automatically closed.  I called each one of them because I have never been late on any payment for 10 years, but they said they couldnt do anything until the full balance was paid off completely.  Once that happens, then I call them and re-apply for the card.  It totally sucks because although I will get out of debt soon, I will pretty much start all over with my credit.

  • Like many other people have already posted, part of the agreement is that your accounts will be suspended once you enroll in the program. All my accounts were suspended when I enrolled about 2 years ago. Most recently, one of my cards was entirely paid off through the program. Once that particular card was paid off, I received a letter from the creditor stating my account had been paid off through the dept management program and that it was not re-opened with the interest rate back to where it was before I enrolled with the program.
  • Same here all my accounts were current but concerned due to economy etc. Just as soon as I entered the program I got a letter from Discover that they closed my account. So, don't feel bad. Actually if, they did that we might be better off.
  • Good afternoon srvgrl and thank you for posting in the Community,

    Yes, this is normal. Most creditors will close the account once they are made aware it has been enrolled in a credit counseling program.

    Thank you,

    Rob

    Follow me on Twitter and Facebook for tips on getting out of debt!

  • Correction ... My original posting said

    "Once that particular card was paid off, I received a letter from the creditor stating my account had been paid off through the dept management program and that it was not re-opened with the interest rate back to where it was before I enrolled with the program."

    but should have said

    "Once that particular card was paid off, I received a letter from the creditor stating my account had been paid off through the dept management program and that it was NOW re-opened with the interest rate back to where it was before I enrolled with the program."

  • Discover closed my account when I entered the program.  I guess that's how they want to handle it.  I had one creditor leave the account open until I paid them and the other will let me decide once I pay them off, if I would like to keep the account open or to close it.
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