Kay Jewelers and Jareds Changing Banks-to Comenity

[Creditbuilder36]

I was just onlin checking my Statement and it's saying that as of Oct 21 they are switching from Sterling Bank but does anyone know who the new bank will be 😳

[MASTERNC]

I'm going to make a guess and say Comenity.  Kay is owned by the same company as Zales.  Zales issues its card via Comenity.  I bet the parent is consolidating all of its stores' cards under one bank.

[Creditbuilder36]

That was my first thought as well Comenity seems to be taking over . Which could mean crazy limit increases they are known for that

[Anonymous]

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@Creditbuilder36 wrote:
That was my first thought as well Comenity seems to be taking over . Which could mean crazy limit increases they are known for that

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Also crazy limit decreases / closures

[Anonymous]

Due to odd an personal interest in both Signet/Sterling Jewelers and Alliance Data/Comenity, I had to research this a little. I found this:

http://www.signetjewelers.com/investors/news-releases/news-release-details/2017/Signet-Jewelers-Anno...

Bottom line, Signet (which operates pretty much every shopping mall jewelry store brand) outsourced their credit operations (Sterling Bank). Alliance Data (Comenity) got the prime business. Secondary subprime business went to another company, with Sterling retaining the option to continue to generate new accounts themselves, as well.

So I'd expect most people to get their accounts transferred to Comenity, but it's possible an account could go to their subprime company or could stay in house with Sterling.

[ccpat]

I got the same message about my Jared's account. 

[kahkah21]

Hello All,

I received the email below from Jared's today.  

We are writing to share some important news with you about your Jared Credit Card*. On October 20, 2017, Comenity Bank will acquire your account from Sterling. We are pleased to welcome you, as a valued cardmember.

• Any repeat or scheduled payments to pay your account to occur on or after October 22, 2017 will not be processed by Sterling. Payments due on or after this date should be directed to Comenity Bank.

• As a bank, Comenity Bank is required to have different policies and measurements than Sterling does regarding the status of delinquent accounts. If your most recent billing statement reflects a past due amount you may not be able to use your account for new purchases and may notice changes to your credit report after the transition to Comenity Bank.

• Please note that this letter is intended only to serve as a notice of the change in creditors for your account and nothing contained in it should be construed as a request for payment.

• For additional information please see the letter mailed to you or visit comenity.net/jared/welcome.

[Anonymous]

Merged couple threads and edited OP as both of these are similar changes.

[wasCB14]

Because jewelry gross margins are high, Signet could probably tolerate a pretty high default rate when they do in-house financing. If they write off $100, maybe it only cost them $70 or $80.

If Comenity writes off $100, it loses nearly the full amount. I wonder if Comenity will impose stricter credit standards than Signet has. That could hurt Signet, since 62% of their FY 2017 sales were through their financing program.

[Creditbuilder36]

I haven't received the email yet but I'll be looking for it Comenity seems to be taking over a lot of accounts I wonder why that Is .Thanks for the info