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Cardworks lp credit card4/7/2023 In turn, such problems could have a chilling effect on the securitization market, he said. "I think there will be additional trusts that don't perform and will require similar actions." Berman predicted that there will be additional fallout from subprime card lending. With the loans closed to new purchases, bondholders will receive cash from the securities only as customers pay off their balances. The loans MBIA has assigned to CardWorks - which owns the subprime card issuer Merrick Bank Corp., and the consulting and management firm Cardholder Management Services - are packaged in securities, with bondholders carrying the risk of losses. Under the 10-year deals, the Dallas-based portfolio management company will set up card programs in the names of each of Spiegel's three store brands. On May 6, Spiegel announced that it would collect what it could from its bad loan portfolio, and, separately, build a new private-label business through deals with Alliance Data Systems Corp. The retail stores remain open for business. Problems with its card business threatened to bring the parent company's operations to a halt, and it has shut down the credit arm while it reorganizes under bankruptcy protection. The Spiegel portfolio consists of loans made to customers of the Spiegel, Eddie Bauer, and Newport News store chains, all of which were owned by the Downers Grove, Ill.-based subsidiary of Spiegel Group. Berman said, especially if the loans are made to people with weak credit histories, who are typical customers for store cards. ![]() What is a Charge Card A Charge Card works like a Credit Card, but. ![]() The history of these troubled portfolios may make bondholders, who stand to lose from unpaid balances, more leery of buying card-backed securities in the future, Mr. If you fail to pay the balance due in full, youre charged an interest on the amount owed. of San Francisco after bank regulators shut it down last year. He said he could only think of one other instance where that happened - Merrick Bank Corp., a South Jordan, Utah, unit of CardWorks, bought approximately $200 million of cancelled loans from NextCard Inc. ![]() Berman said it is nothing new for his company to collect on closed accounts, he called it unusual to be called in as a successor servicer on a portfolio, and to take over for a shuttered bank.
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