Many credit cardholders in Maryland as well as across the United States have been having their Citi and Shell credit cards canceled without any notification from the card issuer. Many customers are becoming irate when they go to use their card for emergencies, but were denied because their accounts have already been closed.
Many credit card companies have practiced the act of closing accounts or lowering credit limits. Credit card issuers fear that cardholders may charge up their card balances if notified in advance of account closures, leaving the card issuer with a large unpaid balance. As of now, card issuers are only required to give notice that a cardholder’s account has been canceled within 30 days of the account being closed.
Citi, for reasons not explained, has chosen to close a limited number of gasoline card accounts that display the Mastercard logo. Another reason that for card issuers cancel accounts without notice is because of inactivity on the accounts.
Unfortunately, many consumers found that their credit card was no longer active when they were trying to purchase gas that was desperately needed. Many of the cardholders are feeling betrayed and confused on why their account was deactivated because they possessed timely payments and high credit scores.
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