Capital One taking over some Comenity accounts

[creditguy]

I know that Capital One will be taking over some Comenity accounts toward the end of the year, i.e. Maurice's and Dressbarn and the Moto Credit through Comenity has been discontinued. Just curious what's up with Comenity? Are they just trimming the fat or are they in some trouble?

[Anonymous]

I got an email today concerning my Maurice's account. I'm wondering the same thing

[Anonymous]

Could be that the contract was up with Comenity and Dressbarn and Maurice got better terms with Capital One? Could be Comenity wanted some liquidity and sold them to Cap One for cash. If Comenity starts losing a lot of retailer accounts then there might be a problem. Within the last year Comenity took over Boscov's (a regional department store chain) from Cap One so I think it's something to watch but I haven't read any bad reports about Comenity. 

[dallascowboyfan]

I received an email yesterday about my Dress Barn account. 

[gdale6]

The sale of credit card portfolios to other banks is a common thing, I would not read into this anymore than it is. I have not heard anything indicating Comenity is in any financial trouble. Sales of the portfolios are typically done for a myriad of reasons.

[pipeguy]

Although I'm not a big fan of Cap-1 Credit Cards (other than the GM Card, which I know is not popular on these forums), I'd welcome 100% doing business with Cap-1 over Comenity for any store card. Cap-1 is going to be taking over Cabella's Visa cards which I have with a $15k CL and I'm not the least bit worried about it - had that account gone to Comenity, I'd close it the day it transferred. 

There are lots of threads on MyFico about Comenity closing accounts for no reason (usual excuse is inquiries, but thats nonsense especially on established accounts with no lates or high utility). GE/Sync has also been a bit strange lately closing accounts demanding tax information, etc. 

As mentioned by others, store cards are "contracted" with various lenders, especially Citi, Cap-1, Barclays (banks), Comenity and GE/Sync (private label lenders), I'd always take a bank over the store-card specialists. Contracts change all the time, just look at Cosco, Fidelty, Cabella's, BP, Brooks Brothers, etc. 

IMO, I'd consider any store card account going from Comenity to Cap-1 to be a blessing.