What happens to loans when the bank closes or goes out of business. For instance I had over 5000 in credit that I owed COMP-USA. When they closed that was written off.

answer from chinatrade114.com small business QA
Federal Deposit Insurance and Central Bank will designate collection office as a part of receivership program to help liquidate assets, collect payments and pay depositors. If you still have outstanding loan balance to date, you should pay to the designated collection agent otherwise, it will incur penalties and surcharges. On the issue of accounts written off, it would not be easy to write off accounts. Banks needed to defend why an accounts must be write off. It may be an aging accounts of a bankrupt individual with no source of income and properties, it may be for a reason that borrower dies while his account still active… ect… Sometimes, these accounts were submitted to the courts for a decision on matters of Tax Credits… Remember, non-payment of such will affect your ratings in the future….
answer from chinatrade114.com small business QA
The Federal Deposit Insurance Corporation will seize your bank, and then sell its portfolio, in whole, or in pieces, to solvent third parties.

Watch your mail carefully. You will get mail from whoever buys your debt.

The conditions of your loan won%26#039;t change, but details of how you pay may.

At CreditCards.com, just yesterday morning we published a story about how credit card debt is distributed after a bank failure. Substitute the word %26quot;mortgage%26quot; for %26quot;credit card%26quot; and you%26#039;ll get the picture. It%26#039;s at: http://www.creditcards.com/credit-card-n…

answer from chinatrade114.com small business QA
Pay to the address you have agreed to until further notice. When a bank goes bankrupt, there is still business that has to be attended to, and there are people to do it.

Tags: Personal Finance Business, local business, Business Finance

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