Sprint - Home Credit US Closure

[Anonymous]

That's great info. I remember when I first got the invite in the mail that I'd never heard of them nor could find much info online at all. In fact, info about Home Credit is still pretty sparse so you're probably 100% correct about the biz just never taking off. Though I am still worried about the impact this may have on my score and other accounts CL's. Thankfully though, I had just purchased a new vehicle on Saturday with my [then] great score. So at least I got the timing right on that one.

[Gollum]

Home Credit US announced (in late 2019) that it would be laying off 99 employees beginning January 31, 2020. Its parent group "...is based in Amsterdam and operates in Central and Eastern Europe and Asia, including China, Russia and India." https://www.kcur.org/post/overland-park-financing-company-sprint-campus-will-lay-99-employees

Regarding a domino effect:

Some companies are currently drawing down their revolving lines of credit, just as some (General Motors, for example) did in the early stages of the Great Recession https://www.wsj.com/articles/another-problem-for-the-fed-banks-pressured-as-clients-scramble-for-cas... (March 17, 2020). That is/was done to make sure they have cash/funds to pay their bills on time, but it makes the banks (that agreed to the revolving lines of credit) less liquid, which means those banks would be less likely to lend to new borrowers. If I understand correctly, the Fed is currently buying short-term treasuries in order to increase liquidity.

Magic 8-ball (https://en.wikipedia.org/wiki/Magic_8-Ball ) says: "As I see it, yes."

[donotpassgo]

According to home credit, approximately 65K cardholders were notified their accounts would be suspended.

I was surprised by that number, I thought for some reason less people were being affected.

[macinjosh]

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@donotpassgo wrote:

According to home credit, approximately 65K cardholders were notified their accounts would be suspended.

I was surprised by that number, I thought for some reason less people were being affected.

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65,000 cardholders? Wow! That was a much larger customer base than I would have thought. I really hope that Home Credit finds a buyer for the full portfolio.

[macinjosh]

Well, it's official. May 13th is final closing date. The FAQ was updated and emailed tonight.

https://www.homecreditus.com/wp-content/uploads/FAQ_AccountSuspend.pdf

Just about 2 months from suspension to closure. Good thing I have enough extra credit to cover that credit line loss.

[M_Smart007]

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@macinjosh wrote:

Well, it's official. May 13th is final closing date. The FAQ was updated and emailed tonight.

https://www.homecreditus.com/wp-content/uploads/FAQ_AccountSuspend.pdf

Just about 2 months from suspension to closure. Good thing I have enough extra credit to cover that credit line loss.

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[Anonymous]

Just woke up to the email they are closing it completely! Went searching when I seen this thread. That's a hard hit cause mine was a 10k limit 

[Anonymous]

Yeah it sucks. I called them yesterday to close my account in advance. That way it goes down on my CR as being closed by me. The last time I had an account "closed by credit grantor" it kicked off a domino effect of other accounts lowering my limits.

[Anonymous]

That's a good idea! Didnt even think of it that way. Says they will close out tomorrow so I will call today and do same. Thanks for the great idea

[Anonymous]

YW! Note the number on the PDF file is no longer any good (disconnected). Use the 855-456-8048 one. Yesterday my wait time was 6 minutes. Good luck.