If a credit card company goes out of business, do I have to pay to another company. Even if I cant use my card anymore.
I have a credit card that went out of business about two years ago. I was informed that I could not use the card anymore because the account was closed. I had set up automatic payments so they deduct the payment from my checking account each month. They also charge me a service fee each month but cant use the card. My question is do I have to pay if they transferred my account to another company?
Yes. If you have a balance you must pay, even if you can no longer use the card and it is closed. Under the law, you would most likely still be obligated to pay the debt. Credit card companies consider your account as an asset, because it makes them money. They can sell those assets to another bank or lender, to whom you must pay the remaining debt.