I respectfully disagree that the user should not have taken advantage of the "two billing cycles to pay" feature in order to not raise the suspicion of Diners Club credit dept.

That is one of the biggest benefits of Diners Club, and a feature it touts in virtually all of its marketing. It is the #1 benefit mentioned. In its own words:

- "No preset spending limit with two billing cycles — up to 62 days — to pay "

Diners Club factors in the float in its positioning, pricing and promotion. If that creates suspicion and a negative rating for a user taking advantage of it, then Diners Club should not promote it.

I take advantage of it all the time, mostly because I need the extra time to file my corporate expense report.

Also, to clarify, the user said he was told that his account was closed, but that it could be re-opened after an extensive (and intrusive) credit and employment check. He was not given the option to "continue" his account being open. That to me seems unfair and capricious on the part of Diners Club, especially since he was not notified by Diners Club of the cancellation until he called DC.

Having said that, it is usually a negative action on your credit report that triggers an investigation by the credit dept. of a credit card company. If you are defaulting with another creditor, you are a higher risk.

As a result, it will either cancel your card or raise your interest rate (N/A for Diners). Most card companies give you 30 days to discuss and/or dispute this decision.

So there may be more to the story, but regardless, Diners should have called him about the decision, rather than waiting for him to experience a merchant decline.