- Every credit card company makes sure it has comprehensive terms of service in place when customers are given a credit card account. They spell out what the annual fee is if one applies. These terms also protect the company and spell out how the customers are supposed to behave with the credit card. If a customer doesn't want to follow the terms, the credit card company reserves the right to shut down the account.
- When a credit card account is terminated, the purchasing ability on the account is canceled. While the credit card doesn't necessarily disappear from the customer's wallet, it becomes useless. Any attempt to swipe the card at a retailer or use the account number online will be denied. The credit card company will allow no charges to go through electronically.
- Just because an account gets closed doesn't mean that the customer is off the hook for a remaining balance. The credit card company will continue to bill and expect payment for the debt. As long as a balance remains, the company can also charge interest as originally specified to the customer.
- Credit card companies behave fairly consistently in shutting off accounts that don't accept fee changes. In some cases, via press statements and notices to customers, the companies flat out tell customers that rejection of fees will automatically result in an account closure. In some cases, however, customers can try negotiating for the option of changing the account to a different card type without points or with a lesser annual fee. The possibility depends on what the lender is willing to offer.
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