• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Law Offices of Jonathan G. Stein Logo
(916) 247-6868
  • Home
  • About Me
    • Organizations, Publications and Presentations
  • About You
  • Practice Areas
    • Debt Collection
    • Estate Planning
    • Personal Injury
    • Landlord Tenant
  • Client Testimonials
  • Resources
    • Blog
    • Brochures
    • Helpful Links
  • Contact

California Debt Blog: FAQ: Should I pay a store credit card?

February 18, 2009 by Jonathan Stein

Q: I have a credit card with a store that is going out of business. I have read on the internet that I should stop paying my credit card. Is this true?

A: NO! Do not stop paying your credit card, unless you want your credit score to fall or you want to be sued – or both.

Store credit cards, such as Circuit City or Mervyns, are not owned by the store. Rather, a large bank, say Chase or Citibank, owns the card. Your payments are to that company. You do not pay Circuit City or Mervyns. So, when Circuit City shuts its doors, your credit card balance does not zero out. Rather, the money is still owed to Chase or Citibank.

If you stop paying your card, the bank will either send you to a collection agency, report you to the credit reporting agencies or sue you for the balance. And you still owe it. The store going out of business is not a defense to this case.

So, if you have a card with Circuit City, keep paying it until it is paid off!

Categories: Credit, FAQ, Legal Process

Primary Sidebar

Sign Up For Our Newsletter Below

Lists*

Practice Areas

  • Debt Collection
  • Estate Planning
  • Personal Injury
  • Landlord Tenant

Allow Me to Help You

    Footer

    Contact Us

      Practice Areas

      • Debt Collection
      • Estate Planning
      • Personal Injury
      • Landlord Tenant
      The information contained in this website is provided for informational purposes only, and should not be construed as legal advice on any matter. The transmission and receipt of information contained on this Web site, in whole or in part, or communication with The Law Offices of Jonathan Stein via the Internet or e-mail through this website does not constitute or create a lawyer-client relationship between this firm and any recipient. You should not send any confidential information in response to this webpage. Such responses will not create a lawyer-client relationship, and whatever you disclose will not be privileged or confidential unless this firm has agreed to act as your legal counsel and you have executed a written engagement agreement with The Law Offices of Jonathan Stein. The Law Offices of Jonathan Stein © 2025. All rights reserved. | Sitemap | Privacy Policy | Disclaimer