What happens if the banks that offer credit cards fail?
Let’s say a customer owes $4,000 on his citibank credit card. What happens to that if Citibank goes under? Will another bank step in, buy the debts and make the customer pay them? I’m just curious because so many people owe on their credit cards. I know the debt won’t be forgotten, but who inherits the right to collect?
Thanks!
Tags: Banks, Cards, Credit, fail, Happens, Offer
The debt remains. It is an asset on the books of the bank.
The debt will most likely be sold. That would give the new debt holder the right to collect. Banks sell their loans all the time.