Re: Please help - nextcard question
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Posted by Bob (203.96.111.201) on August 07, 2002 at 22:41:07:
In Reply to: Please help - nextcard question posted by Nextcard_settler on August 07, 2002 at 21:07:56:
A possible issue here is that NextBank, the issuer of NextCard Visa cards, is now out of business... "On February 7, 2002, NextBank, N.A. was closed by Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) was named Receiver. No advance notice is given to the public when a financial institution is closed." They just recently sent out final snail-mail notices to cardholders stating that all NextCard Visa card accounts are now closed and can no longer be used for purchases. The card balances/debts are still valid, with the payments still due as usual. The FDIC is then applying that money to the failed NextBank's own debts/liabilities. Since the government is now involved, and the bank isn't functioning anymore, they may be much less interested in accepting settlements. And even in a normal situation, a bank (or any other creditor) can certainly refuse to settle for less than the full amount. They have *no* legal/contractual obligation to settle. And even when partial settlements are accepted, it will take *much* longer than a mere thirty days late before the creditor will even consider it. It is quite possible that a creditor would keep demanding the full amount for six months, then designate the debt as a hopeless charge-off, and send it to an outside collection agency, which may take some more time (months) before they are in the mood to accept a settlement. So, by the time a settlement is possible, your credit record may already be seriously damaged.
Oddly, the NextCard site doesn't seem to mention thier shutdown anywhere obvious. However, you can get some info at...
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