If Circuit City Folds...Chase is BIG loser...

Not long ago JP Morgan Chase purchased the credit card operations of Circuit City and embarked on a sizable IT conversion of that ‘portfolio’ to the Chase credit card platform.

This conversion was recently completed and was put into production. According to what I have been told it was (from an IT standpoint) very ugly.

That said: If Circuit City folds all monies owed via credit card will become a loss for Chase.

The same goes for Pier One credit cards, as JPMC owns them also.

The same goes for BP. Yep, you guessed it, JPMC owns them too.

Did I forget to mention ‘Washington Mutual’?

:nopity: :nopity: :nopity:

If they fold that means Best Buy will become the only local brick and mortar general electronics store in this area. When CompUSA went away, Best Buy here went noticeably downhill. Their service went to trash and their prices went up to be more "in line" with Circuit City (but still cheaper than CC).

Circuit City is their only competition. We don't have a Fry's. We don't have any small business electronic stores because they were all pushed out of business by Best Buy, Circuit City, CompUSA and Wal-Mart. Best Buy would only be competing with internet sales. While internet sales continue to grow, a lot of people still prefer going to a store and touching or looking at the items they wish to purchase. If CC goes under, Best Buy would almost be a monopoly here (almost because Wal-Mart, Sams and Costco have SOME consumer electronics, but not nearly enough to be a real competitor in the same retail space, and Lowes/Home Depot deal with appliances) and I'm very certain they'd act very monopolistic.

Personally I buy 99% of my stuff from CostCO anyway

I don't have one of those credit cards but I've got to imagine the contract is written such that the debt can be bought and sold to other companies... and that the responsibility to repay doesn't go away.

chapter 11 protects a company from its creditors... but I don't think it wipes out its receivables.
:shrug:

I'm far from a financial guru but it seems like Circuit City (or whoever else) could simply close all the stores and fire all the employees and not have to forgive any debt.

The credit card processor demanded a deposit that was essentially 100% so Frontier declared bankruptcy rather than pay. This incident demonstrated that companies must put up deposit money to credit card processors.

I too am not a financial guru, but I wonder if Chase will be just fine if Circuit City fails.

Circuit city going under will have ZERO effect on the obligation of circuit city card holders to pay chase.

And the mis-information you are spreading in this thread is dangerous. Someone who doesn't have a clue may read it and go out and max out a circuit city credit card they wouldn't be able to repay.

...fuck their 29 percent interest rates on their credit cards, and most of all fuck the scumbag bankers that allowed this to happen in the first place.

These bastards shouldn't be getting bailed out with federal money...they should all be doing the perp march right now for their parts in the huge ponzi scheme that has suddenly blown up in their faces.

If anyone really gave a flipping shit we wouldn't be throwing close to a trillion dollars at these common fucking criminals. If anyone, (including Obama- he's starting to be nothing more an an enabler of these bastards as well), actually cared, they would start making it very clear right now, that we will only print money to help create domestic jobs, shore up the flailing small business sector, repair our infrastructure, protect the environment, fix that joke of a public education system, and make sure the basic human needs of shelter, nutrition and proper health care are available for every American.

But...that's not why these scumbags fought tooth and nail to make sure georgie-boy and unka-dick stole the white house in 2000 is it?

"If Circuit City folds all monies owed via credit card will become a loss for Chase"

Completely wrong. Just because a credit card says circuit city on it doesn't mean if circuit city goes under the creditor (Chase) no longer is owed the money by the card holder.

When you open a circuit city credit card (or ANY credit card with some business name on it) you owe that bank REGARDLESS of what happens to that company.

Or do you seriously think circuity city card holders magically will be released from their debts by Chase after circuit city goes under?

Maybe I'm wrong, but its not whether or not CC or JPMC are piece of shit companies.

The money owed on CC credit cards is owed to Chase not to CC. Yes, if CC folds they 'walk away', but its Chase left holding the bag of crap. And who ultimately pays then?.....US!

How long do we think its going to be until the credit card 'industry' goes the way of mortgages or the auto companies? The credit card bubble will burst soon and in a big way.

And who ultimately pays?.....US!

And how are we all going to feel when the smoke clears and there are only 2 or 3 big banks left?

Ask all the WAMU customers who avoided Chase how they feel now.

Maybe this is a case of 'we have met the enemy, and they is us'.

Don't you?

now I live in Fl and I've got to admit I really miss them

Their web site says:

"Circuit City Rewards Credit Cards are issued by Chase Bank USA, N.A.("Chase"). You understand that you are requesting to be considered for either a Circuit City Rewards card account, which can only be used at Circuit City, or a Circuit City Rewards Visa® card account and that Chase may in its sole discretion provide you with either account type regardless of your creditworthiness. The Circuit City Rewards card and Circuit City Rewards Visa accounts have different costs and benefits. Before we approve you for an account, we will review your credit bureau report and information you provide to confirm that you meet the criteria for an account and to determine what Annual Percentage Rates will apply."

So some are restricted to being used at Circuit City, they have a Circuit City rewards program feature, and they have Circuit City graphics.

But the credit card is between the consumer and Chase. Circuit City going out of business will cause Chase to lose its investment in the conversion and promotional expenses, but Chase will collect the balances owed by the customers regardless of whether Circuit City survives or not.

Last week we got a letter from them urging us to cough up $230 for a warranty on the TV we bought last Christmas.
Now I read they may go under?! Guess we'll live without the warranty, considering CC may be gone in the Spring anyway.
And yesterday First Data hoovered $160 out of my bank account with a new "annual service fee".
I am sick of these corporations ripping us off!!