Can I trust the company which has offered me credit after bankruptcy?
I filed for personal bankruptcy last year . . . received my discharge a couple of months ago.
A few days ago I received, in the mail, an offer from Canaccede Financial Group offering me a new, unsecured, Affirm MasterCard. They apparently do know I filed for bankruptcy. On the face of it, this could be a good thing as it will be a first step in helping me re-establish a credit rating.
However, upon investigating, I have found that this is a collection agency which has acquired a former MBNA account, one which was included in the bankruptcy. This kind of sets off alarm bells for me . . . although technically this debt no longer exists, why would they buy it from MBNA, then offer me credit?
Could this be just a back-door way of trying to collect on an old debt, even though it has been written off by the bankruptcy? I see reports of this, i.e. reviving old debts or zombie debts, happening a lot in the US, but not sure if things have sunk this low in Canada.
Unfortunately, I thought this was a legitimate offering and applied for the card in order to start rebuilding my credit post discharge. I then received a letter from Canaccede Financial Group stating that the debt owed (prior to my bankruptcy filing) was in active collections and they were seeking a court judgment if the debt was not taken care of. It was a very heavy handed letter and of course I called them.
They tried to tell me that they were not aware of the bankruptcy and did not receive any notification from my trustee. I found that hard to believe as the account number and name was disclosed on all the filing documents I have from my trustee. How would they have known that I was in bankruptcy in order to send the card offering that clearly states it is for people trying to rebuild their credit? It seems to be a bit circular and underhanded. I directed them to speak with my trustee.
As a warning, their techniques are very deceiving, offering credit to people who have had a troubled past, and then threatening them with action on past debt. Is this a legal business practice?
I would be suspicious too. I think a better choice would be a secured card from Capital One.
They will report the payments you make each month which helps rebuild your credit as you make regular payments over time.
Approval is virtually guaranteed.
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Earl Sands, LIT