Next Card Falling Apart

Discussion in 'Credit Talk' started by GEORGE, Dec 16, 2001.

  1. GEORGE

    GEORGE Well-Known Member

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    THIS IS WHAT I GET WHEN I PUSHED BALANCE TRANSFER...

    I know somebody said MAYBE January...but just checking...

    So if you "buy" STUFF on NEXTCARD for $5,000, they are better off than you doing a BT of $5,000????

    I'm confused...
     
  2. daveberk

    daveberk Well-Known Member

    As you know, George, the Comptroller of the Currency found that Nextcard was undercapitalized. It seems that Nextcard is not wanting to encourage cardholders to take on extra debt at least until the regulators are satisfied. Of course, you could run up 5K in debt since you can't do a transfer right now but are going to?

    Among other things that the OCC ordered:

    No new originations under the secured credit program.

    Nextcard may not open a new account for anyone whose FICO is below 680.

    Cannot grant automatic increases to cardholders but may consider them if the cardholder asks.
     

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