Public Savings Bank Secured Card Still Exists Despite Bank Failure?

[BankruptinNJ]

Now that Public Savings Bank has failed, what happens to all their "secured" credit cards??? (I'm so glad that I didn't apply, even though I was tempted).

Capital Bank is taking over Public's assets.

Apparently, Public Bank was "critically undercapitalized".

[sh9730]

Well, first of all, typically the new "purchasing" bank honors all previous committments for awhile at least. They may give notice that certain products will no longer be continued, but they always give notice.

Also, NORMALLY (one would need to read their agreement to confirm this), the "secured" cards are backed by an actual DEPOSIT ON FILE in savings account, and as such those deposits are FDIC insured so as long as you had a zero balance you would get your money back.

[thereshope]

I have there card, but I don't have any regrets. I just learned about there closure after logging on to make my payment. I was able to make my online payment without any issues. I have a $300 credit limit and this was the first card that I used to help rebuild my credit, but since then I'm gotten unsecured credit limits that are much higher and will eventually close this account and request my money back. And yes the money is in a savings account that is secured by the card.