Legal Question in Credit and Debt Law in New York

Bank that owned credit card went bankrupt

I had a credit card with Spiegel which was owned by First COnsumers National Bank which had recently went bankrupt.

I have been managing and paying my credit on time but

little did I know what was going on. All this time I wondering why I always got late payments and over the limit fees. It ends up they were postdating my checks until after my due date and I would receive a late payment charge every month which would then go into an over the limit fee charge.

So I would be getting charged about$70.00 a month plus a finance charge so every payment i made was never enough and my babalce always went up. Now I am not even receiving a bill anymore, there is no where to call, no website, only a place to mail your payment which is a payment processing center. I went online to the bad business bureau and there are so many girls out there with the same problem and they don't know what to do. Most of them are not paying it but then it goes on your credit report so your screwed either way. My question is what do i do from this point on, do I mail these people money since they are not even a bank, I don't know if I trust them, how do I get most of my money back that I paid over the years. I am in desperate need of help. Thanks


Asked on 11/07/03, 11:20 am

2 Answers from Attorneys
Guy Lewit Guy Mitchell Lewit, Esq.

Re: Bank that owned credit card went bankrupt

This may seem strange, but you should contact one of the "Help me" teams that are always featured on TV. They might be able to cut through the "red tape" to get to the bottom of this and I think they would be interested if it appears there is some fraud (with the late application of your payments). Other than that you are allowed to contact the Credit Reporting companies and provide a written explanation if there is a negative credit report over this debt. You can also appear in the bankrtupcy proceeding (if there is one) to have your grievances addressed.

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Answered on 11/07/03, 12:43 pm
Robert R. Groezinger GroezingerLaw P.C.

Re: Bank that owned credit card went bankrupt

Something is odd..usually the company will sell off the account to another. Contact the NYS Attorney General's office [only because from your statement, somethings smells fishy (I had to say fraudulent without knowing more)].

Good Luck

RRG P.S. here is the link http://www.oag.state.ny.us/

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Answered on 11/07/03, 3:23 pm


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