8 Thoughts on What happens to credit cards if a bank fails?
  1. Reply
    March 20, 2013 at 2:45 am

    whom ever buys that bank out ,now own the credit cards.if the bank folds completely then the credit card is void.

  2. Reply
    March 20, 2013 at 2:51 am

    Credit cards and loans would be bank assets and would be sold or taken over by the trustee. You would continue to make your payments to the same address until you were notified to send the payment elsewhere. There is little chance that your outstanding balance will just disappear.

  3. Reply
    Sharon T
    March 20, 2013 at 3:12 am

    The credit card dept. will be transferred to another bank. They can change your terms with proper notice.

    Now is a great time to try to pay down all credit cards to zero and also to build savings for emergencies. Tighten the belt and you’ll be glad you did.

  4. Reply
    March 20, 2013 at 4:10 am

    The account (if you carry a balance) will be sold as a receivable. However, it will convert to a closed-end loan.. The rate will not change, unless you pay late. Thus, no more using the card. Reason being the first 6 digits on the card are the BIN, Bank Identification Number. Visa/MC’s systems will not function properly if one bank is managing cards issued with multiple BIN’s. Even worse, the system would melt down if one BIN was used by multiple banks. The entire routing of transaction information to move money needs this one-to-one relationship.

  5. Reply
    Lil' E.
    March 20, 2013 at 4:27 am

    u gotta pay, u not getting a letter sayin the debt is gone, only in the movies.

  6. Reply
    James P
    March 20, 2013 at 4:30 am

    Whenever something like this happens another bank—the one that took over the credit division of your bank (or your bank)—will also take over the accounts. Your credit card may eventually be rebranded and it will be managed differently to reflect a new company’s interests (e.g. a WaMu cardholder gets a free PFICO score, and if that account changed hands, this could change unless guaranteed in the terms), but you will keep your account (as you would keep any debt you have).

  7. Reply
    March 20, 2013 at 4:58 am

    When the bank fails the goverment takes control so you will still owe the money…

  8. Reply
    March 20, 2013 at 5:03 am

    You still owe whatever the balance is. Usually another bank takes over the failed bank’s business and you will have a card at the new bank. However, the new bank may have different standards and can cancel the card if it wants.

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