closed account fee

Definition

A one-time fee charged by credit card issuers when a new customer closes an account too soon after opening it. For example, if a customer applies for a credit card and then cancels the account within 60 days, the issuer might charge a $20 fee for the administrative expenses incurred. The details of this charge vary based on the credit card company's policy. For such a fee to be valid, it must be disclosed in the card holder agreement.
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closed account closed corporation