Question by kmalip: What happens to an outstanding credit when the company is shut down?
I use to have a nextcard and I’m trying to clean up my credit report. I tried calling the number but it won’t let me get past an automated system. I tried to find it online, but the website doesn’t exist anymore and the only thing I could find are federal litigations against the company. Needless to say the company no longer exists because they no longer have a bank associated with them as well as no financial backing. So what happens now? How do I get this off my credit report? Does anyone know?
Answer by clydes754
Usually when a business “shuts down” they will sell off all their assets (liquidation). What you owe Nextcard is an accounts receivable for them. That means this is an asset for them. What typically happens is they will sell off their accounts receivable to another creditor at a factored rate (less than what the asset currently is due to uncollectible balances). When this happens you should be or should have been notified that this happened (not necessary in such understandable terms) and given the information regarding the new creditor. Look back through your old bills and information – see if you have anything remotely related to this debt. Then try and keep trying to get an actual person at the customer service line. If that doesn’t work – the next thing I can recommend would be to dispute this with the credit bureau that you ordered your credit report from. You are making attempts to satisfy this debt and have been unable to contact the creditor (old or new), therefore, you should be able to resolve this issue and remove it (one way or another) from your credit report.
Know better? Leave your own answer in the comments!