WILL HOUSEHOLD BANK LET YOU KEEP ACCOUNTS THROUGH BANKRUPTCY

[azboy]

I have a gm card zero balance, corvette card zero balance and am contemplating BK will they revoke the accounts anyway when they do a prm and see my credit going down the hole. Or lower my limits to nothing does anyone have any experience with this lender

[LadynRed]

Expect Household to close those accounts.. and watch your credit reports closely - they are vindictive in their reporting to punish you.

[Watsonsbag]

Plus you don't want them to keep anything open. The WORST lender around. Just do a web search on complaints against them and you'll see what I mean. And our personal experience....well, I could write a book.

P.S. They can stick their "settlement" of $271 you-know-where. Yep, that's what the $484 Million boils down to in compensating their mortgage victims. What a sham and a sellout by the agencies supposed to be protecting us.

[strix77]

Just a note, Crap One offered me a reaffirm with a 100$ credit on a $700 balance that was included in my CH7. 0% for 3 months and 15% after. I think I'm going to go for it since I have NO cards now. This will be my only card. I was denied by Household recently :cry:

[Watsonsbag]

In your situation, it does sound like the Cap One offer is OK, as long as you're careful.

Be grateful Household didn't want you. For anyone receiving an offer from them, please read this first:

http://www.thecomplaintstation.com/cgi-bin/frames.cgi?0363

Consumer beware! Since our lawmakers see fit to continue to allow dubious practices and ignore the huge amount of damage to finances and mental well-being, the least thing that can be done is to spread the word by any means possible about the real facts.

A good weekend to all.

[ghacorp]

Cap One has numerous programs whereby they purchase debt and have reaffirmation offers whereby they transfer the debt to a new card interest free. This is one of the reasons Cap One is a very successful and profitable company. If the bankruptcy process offers erasure of the balance due, why not go for it? Cap One's offer is a contract whereby you will be a customer of theirs after discharge, but is ANY credit card worth paying several hundred dollars for? Debit cards are effective 98% of the time and if you can qualify for a checking account, you should have no problems obtaining a debit card.

[Watsonsbag]

Debit cards are great, they save you from yourself, so to speak! However, if you are trying to rebuild credit they do nothing to help. Having 2 credit cards that you keep small balances on and pay regularly will do a world of good. Just make sure you get the right card; see above.

The Cap One offer seems excellent in this case for the poster. Go for it and good luck!

[ghacorp]

If credit rebuild is the objective store cards with low credit limits may be the way to go. Mortgages, for people who still have them provide an even higher weight to the credit score. Credit card lenders are a dime a dozen, so why should anyone spend $500 to retain a Cap One card in hopes of attaining a better credit standing?

[Watsonsbag]

I thought that store cards are looked down upon by credit scorers. Also, they are not that easy to get, and easily carry interest rates approaching 24.9%. Plus, there's lack of flexibility; you can't use them anywhere else. Still, they're better then nothing, I suppose. Everybody's case is different.

[LadynRed]

Wait - you're suggesting that Crap 1's offer to transfer a DISCHARGED DEBT to a NEW account is a good idea ?? What drugs are you on ??? This is COLLECTION of a DISCHARGED DEBT no matter how you twist it !! Its ILLEGAL, it violates the permanent injunction of the discharge. There is absolutely NO WAY this is a good idea - I have to disagree and you can take that for what its worth :wink:

On the surface it may seem like a 'nice' thing for CRAP1 to do, but its not, its ILLEGAL ! I understand wanting to rebuild your credit but there are plenty of other avenues to explore that will NOT have you paying on a debt that you had discharged in the first place !

I would find another way - I can't believe Crap1 is even attempting this. I'd be sending their 'offer' letter to a lawyer so fast it would make Crap1's head spin !!!

[strix77]

Thanks for making my decision easy on this. I will not be accepting Cap 1's offer. After LadynRed's post, it seemed like a no-brainer. I don't need a cc right now anyway. Though a cc would be nice for rental cars and other related travel for work. Taking on discharged debt to keep a card is not right. I'll just save the money and get a secured card a my local bank.

Thanks Everyone!

[nativechild48]

If you are ready to take a chance on yourself try a secured card with a good bank, not household or cap1 and definitely not orchard(household) or first premier etc. Better yet, I recommend if you have a bank acct of 500 to 1,000, go to a local credit union and deposit it in a one year CD and wait about a couple of days and borrow half the amount as a secured note. You are safely reintroducing yourself to the financing business and ask them if they report to the cras' it helps. I find that too many people(self included) when their credit is not up to par want to jump out of the pan and into the fire, thus making even bigger mistakes CAUTION: LOOK A GIFT HORSE IN HIS MOUTH!! Let your pocket collect fuzzballs instead of debts and stay away from those too eager to offer you money because you lose in a big way. xburnoutx

[LadynRed]

Strix - glad you decided to steer clear of Crap1's offer ;)

I was researching the BK code along with the FDCPA and FCRA. I found something rather interesting in the Senate notes on Section 524 of the BK code. It says the following:

Subsection (b) gives further effect to the discharge. It
prohibits reaffirmation agreements after the commencement of the
case with respect to any dischargeable debt. The prohibition
extends to agreements the consideration for which in whole or in
part is based on a dischargeable debt, and it applies whether or
not discharge of the debt involved in the agreement has been
waived. Thus, the prohibition on reaffirmation agreements extends
to debts that are based on discharged debts. Thus, ''second
generation'' debts, which included all or a part of a discharged
debt could not be included in any new agreement for new money.

So, Crap1 is definitely breaking the law !!!

Strix, I think its important for you to keep that letter and go to www.edcombs.com and contact the lawfirm about that letter. They're after Cap1 for their 'offers' for new credit cards based on OUT OF STATUTE debts, but NOW they're doing the same for DISCHARGED debts !! I believe they would be VERY interested in that letter. You can most certainly include the text that I quoted above ;)