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What Happens To Your Store Credit Card In Bankruptcy?

Tuesday, May 21, 2013 - 7:42 PM
Not your bankruptcy... the store's.

From Credit Card Forum, a reason to avoid using a store's credit card:
Back in December of 2011, RoomStore filed for Chapter 11 bankruptcy. Then in June of 2012, the judge changed it to a Chapter 7 – that means liquidation and going out of business.

So what happened to the customers who made advance payments for furniture orders?

For customers who made those purchases on credit cards from other banks, the process would usually be pretty simple: they would file a dispute and since they did not receive the furniture, the bank would reverse the charges.

In the case of the Roomstore credit card, it’s messier. The store was still taking furniture orders right up ‘til the last days before bankruptcy. Customers were using the store’s card to prepay for orders, only to be left empty handed with no merchandise… yet they were still expected to pay back the credit card!

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I only have one store credit card, which I use rarely and only if absolutely required to do so in order to redeem a worthwhile dollars-off coupon ($X off when you charge $Y on your ZZZ credit card). 
6
pearlbrownpearlbrown1,356 posts since
Nov 2, 2010
Rep Points: 5,955
1. Tuesday, May 21, 2013 - 7:46 PM
Nostalgia: 7 years ago

What happens to my existing Montgomery Wards account balance?
Your existing Wards balance and any existing Wards purchases will appear on your new Wal-Mart statement along with any purchases you make at Wal-Mart. Your new Wal-Mart Credit Card replaces your Wards card so you'll have one convenient monthly statement and one bill to pay. 
9
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,600
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