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Idea for using the 2009 Credit Card Reform Act


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I’m looking to clear up several bank issues that have effected me since the banks did their national belly flop. I ran into trouble when Advanta failed and cancelled my account (along with all customers). Chase followed on a personal cc, cancelling it despite a $0 balance. When these "Closed by Credit Grantor" references showed up on my credit reports, other creditors followed with a Universal Default.

I think I may have hit on one idea and would be thrilled to get the feedback of this forum. The Credit Card Reform Act passed in May, 2009. Many of the actions that took place on these accounts are covered by this law. First, what is the penalty for a bank who violated the act? Second, do portions of the act extend to how credit bureaus report?

I was thinking of a letter to each of the creditors who violated the Act, referencing areas I believe they violated, warning of legal action and demanding they remove the incorrect reporting, with a cc to the FTC, Comptroller of the Currency, White House Consumer Financial Protection Bureau. Then, a letter to each of the credit bureaus demanding removal of the items with a similar group of cc's.

What do you think this idea? Any thoughts on how to improve the intended result?

Edited by Determined2
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Because of intense lobbying by the banks the provisions you refer to were phased in and not retroactive. I doubt you'll get anywhere with this approach.

Were the Universal Defaults really because of a "closed credit grantor" line, or did closing one account and suffering the utilization impact from less available credit lower your score?

I understand that the "closed credit grantor" doesn't impact your score, although lates on the line will.

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The account closings took place after the law was passed not before. I'll never know the true reason they closed the accounts, they created a "FUBAR" scenario that was beyond reason or explanation. Part of the approach I have thought of is using strategy to make them realize if they don't comply, they have an awful lot to lose.

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