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Question By
JoyLilyLady

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Got derogatory remark because company cancelled my account - but it was because they went bankrupt!
They don't mention that the company the card was associated with went bankrupt in the remarks, only that THEY were the ones to cancel my account. I've been paying (and will continue to pay) my balance on time until it is paid off. But I'm being punished for this company's failings. How do I correct this? Any suggestions?

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Gonna have to make a few assumptions...

Helpful to 1 out of 1 people

Okay…. I’m going to make a few assumptions here, but they will be based on the words in your question, and I hope to clear it up for you.  My first assumption is going to be that I believe you may have defaulted on the item.  I say this because you say you have a “remark” on the account.  Accounts with remarks are usually closed or in the process of dispute. 

I recognize that you say they cancelled the account, but if it was cancelled and you are still making payments, then that means there was a balance after the account was closed.  This typically happens when there is a gap of about 120+ days and a company closes an account and revokes your right to bring it current again by charging it off.  So that would be my second assumption.

It’s possible, and my third assumption, that you are paying your payments to a third party Collection Company at the moment.  And while the original creditor may have gone bankrupt, you still owe the money as you agreed to the collection company.  By making payments to the collection company you have already validated the collection company’s right to collect the debt on behalf of the original creditor. 

With that said…. I have a little advice to help you get past this time of your life,

1)      Keep making your payments and pay off the debt as agreed.

2)      Understand that the item is in collections because of a life choice you made, learn from this and don’t be angry with someone that actually tried to have faith in you by extending you credit.

3)      Monitor your credit and learn as much about your credit as you can so you can get past this negative spot and rebuild

4)      Understand that I mostly know about the assumptions above, because I too got behind in my credit knowledge and have to rebuild my credit.  As do a lot of people here on CK, that’s why CK is most important for people like us; it gives us the tools to bounce back from situations like this.

If these assumptions are wrong, please forgive me, but I only have the details you left in your question.  And if I am right, I hope you check back to CK often so you can rebuild to a solid score again.

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