This seems to be moving pretty quickly...

[SVBroke]

Just received a letter from a CA about a debt on a Sears Card demanding payment for the entire amount owed. We are just now two months late on this card. Doesn't that seem pretty quick to turn it over to a collection agency? Does it really matter if its the original creditor or a CA that is trying to collect on the debt?

[StartingOver08]

Sears is very aggressive on collecting their debt, they always have been. Also they are pretty well known for "sewer service" for judgments.

Also Sears is a big violator of the permanent stay - they try to collect on debt that has been discharged in BK. There was a lawsuit about 10 years ago because they are so aggressive:

Sears to Pay Fine for Illegally Pursuing Debts
February 10, 1999 in print edition C-2

Sears, Roebuck & Co. agreed to plead guilty to fraud and pay a $60-million fine for illegally pursuing debts from credit card customers who had filed for bankruptcy, the retailer said. Under a deal with the federal government, Sears’ Bankruptcy Recovery Management Services unit will admit guilt to one count of bankruptcy fraud. Hoffman Estates, Ill.-based Sears has already paid more than $180 million in restitution to about 188,000 debtors and $40 million in civil fines to the attorneys general of all 50 states in connection with the scheme. Credit card debts are erased when customers file for bankruptcy. Debt collection or “reaffirmation” agreements allow cardholders to continue paying off their debt in exchange for keeping the credit card or merchandise bought on credit. Sears said it had also reached agreement with the U.S. attorney’s office on a civil lawsuit filed in April 1997 regarding the same practices. As part of that deal, Sears agreed to diligently file all reaffirmation agreements in U.S. Bankruptcy Court.

I had a divorce 20 years ago and had a sears charge - there was an unpaid bal of $1200 at the time of the divorce. Rather than dun me for payment, they got a judgment (sewer service, never knew about the judgement). I sold my house 4 years later - they collected $7400 off that judgment. Had to pay it at closing when the title was searched - that was my first notification. Believe me, lesson was learned about creditors getting judgments!

All this sounds like old news...not so, they have not changed one bit, IMO.

[SVBroke]

Our card is regular Sears Card. However, just a note, the CA letter we received indicated that their client was 'Citibank'. I had to look through our statements and saw that the referenced account number and close amount due was our sears card.

[albacore44]

Our card is regular Sears Card. However, just a note, the CA letter we received indicated that their client was 'Citibank'. I had to look through our statements and saw that the referenced account number and close amount due was our sears card.

interesting.......I have a Citi retail card with a mattress retailer with a $2K balance, and was trying to figure if it is secured, and if they would try to pick up a 1 1/2 year old mattress if we stopped paying.

[BigJohn]

If a secured creditor puts on a persons house a new roof and ceramic tiles thru out the house, will they come and take off the roof and put back on the house the old roof and will they take the tiles and replace them with the old carpet?

[Pizza]

If a secured creditor puts on a persons house a new roof and ceramic tiles thru out the house, will they come and take off the roof and put back on the house the old roof and will they take the tiles and replace them with the old carpet?

No. I wouldn't think that would be legal since it would be damage to property... plus the used building materials would be useless to them, and the old materials would be in the garbage already.

That said, if the construction was a secured loan, they would probably battle in court for a lien against the house.

[debtmonster]

From what I understand, Sears simply throws a lot of the stuff right in the trash. They just don't want you enjoying the use of it. That's why they don't care about the condition. I have a relative who drives a trash truck and does pickups for them. They have gotten tons of good quality stuff from the garbage. Tools, motors, all kinds of like-new stuff. They are real bastards. I guess I can't blame them. I would do the same thing if you went BK on me. I'd want the stuff back just to prove a point. I wouldn't want anybody enjoying anything for free from me.

When I go bankrupt, I don't care. They can come to my house and TAKE EVERYTHING! It's less I have to move. My wife thinks the opposite, but I don't care. I'd rather live in a cheap 1 bedroom apt and live within my means. This home-owning crap is not for me. I burned a Discover card over 15 years ago that I will include in my BK. I have no idea what I charged on it.

[Pizza]

From what I understand, Sears simply throws a lot of the stuff right in the trash. They just don't want you enjoying the use of it. That's why they don't care about the condition. I have a relative who drives a trash truck and does pickups for them. They have gotten tons of good quality stuff from the garbage. Tools, motors, all kinds of like-new stuff. They are real bastards. I guess I can't blame them. I would do the same thing if you went BK on me. I'd want the stuff back just to prove a point. I wouldn't want anybody enjoying anything for free from me.

Since the debt would belong to a bank (specifically, Citibank on Sears' Credit Cards), wouldn't it be the bank's decision to fight to take it rather than the store?

[debtmonster]

No idea. I just know they take tons of stuff back. I think they do it to prove a point and to keep a reputation that you're not gonna go and charge a bunch of stuff and get to keep it just because you file a bankruptcy.

[Pizza]

Maybe. I have a hunch that this was something that happened back when Sears did credit in-house (Sears National Bank). I had a card that was like that a few years back. Now that it's Citibank, Sears gets their money at the point of transaction, so they probably never even hear about who walked off with a $40 Craftsman drill or even a $1,200 refrigerator on credit.

That said, Sears is awfully hypocritical, seeing as the recent news headlines speak of Sears' probable bankruptcy in 2009 -- which means that they bought millions and millions of dollars worth of inventory, property, etc. and won't pay it back.

[debtmonster]

That said, Sears is awfully hypocritical, seeing as the recent news headlines speak of Sears' probable bankruptcy in 2009 -- which means that they bought millions and millions of dollars worth of inventory, property, etc. and won't pay it back.

Just like what Circuit City is doing. Don't they owe HP like a $100 million or some crazy amount?