I know that Sears will take back items purchased with a Sears retail card when someone files for a chapter 7 BK and does not reaffirm. Has anyone out there been asked to return items from the following creditors? Target Guest Card (Retailers National Bank) JC Penny Household Retail Services (A whole slew of retail cards for various merchants, including Menards) Other retail creditors that grant a security interest in goods charged with their credit cards.
That must be recent. I never had Sears take back what I purchased when I filed a CH7 a little over 10 yrs ago. I also did not have any other creditor take back any merchandise.
Actually I know a couple that had their Sears washer and dryer repo'd by Sears about 10 years ago. I can't imagine WHY Sears would even want them back.
There are 2 different types of cards from Sears. The revolving card is non-secure, starts with a small limit, and is meant to be used for clothing and incidentals. If you go in to buy a fridge or a washer and dryer then it is an installment based card, and in the small print, the merchandise is securing the loan so they can come and get it.
I THOUGHT I GOT SOME CHANGE IN TERMS NOTICE---"we no longer have a security agreement against any merchandise you may buy including big ticket items like washers and dryers" SEARS "STORE" CARD
I'm sure I've told this story here before but it is worth repeating. Many years ago I was at my local Sears store. I walked up to a register to pay for something and there were two employees going through a huge trash bag & box going through different items. I swear they were pulling out dirty underwear, jeans, socks, some dishes etc.... They would take out the item and mark it off on the list. I was shocked thinking somebody had returned these dirty used items and they took them back. I asked the cashier that was helping me if those were returns. She said no, it was from a customer who filed bankruptcy. She said something like if you don't pay for the item they repo it. I laughed thinking they would actually repo dirty underwear. I have also seen obviously used appliances on the floor that I have always assumed were repos. I wonder why they don't/can't do it anymore
They lost their ass in a lawsuit a few years ago over reaffirmation agreements and as a result, just got out of the bk business. Last year, I got a notice with my Sears bill that said Sears not longer claimed a security interest in items bought with their card. http://www.bankrate.com/brm/news/ba...thorid=52&firstn=Lynda&middlen=&lastn=Edwards
