PMSI and 'secured' consumer credit???

[Ekop785]

I have just learned that some retail store credit cards are PMSI (they have some kind of security agreement, thus making them a 'secured' debt). I listed all my credit cards as 'unsecured, non-priority'.

I have no recent purchases, but I was unaware that an unsecured credit card could be deemed 'secured' .

My 341 is in a few days and I am now in panic mode again (pro se).

Do I need to refile my paperwork as secured debt even though I am not making payments on any type of property?

[shipo]

I'm like 99.9% sure if your retail cards fall under the heading of PMSI, it will be very literally spelled out in the Terms and Agreements for that card; you should be able to look each card up and answer this question for yourself. That said, unless you're talking about a specific card used to buy say, a full kitchen's worth of high end appliances, there is a good bet it isn't PMSI.

[Ekop785]

The most expensive item was a computer a few years ago for around $ 500.00. But I am concerned that I filed this card under "unsecured" since it is also a regular credit card that could be used anywhere.

I think at this point I need to meet with a lawyer. I thought I could do this pro se, but it seems I have made one mistake after another.

[justbroke]

Most store cards are PMSI (purchase money security interest) and they keep that PMSI on everything that you purchase until it is paid off. The most notorious of these cards is Best Buy. Best Buy is also one of the most aggressive creditors when it comes to protecting their PMSI. Usually, major credit cards with the Mastercard, VISA, Discover or American Express branding are not PMSI cards as they are general unsecured.

The cards which have the issue are cards such as Best Buy, a Sears store card, or any other store branded card. But buyer beware (caveat emptor), credit unions will usually cross collateralize credit cards with certain other debt (such as a car loan) with the credit card. Credit unions are a special case and require care.

Whether or not scheduling the creditor incorrectly will cause any issues... I can't answer that question.

[Ekop785]

What about store branded cards that are also Visa or Mastercards that can be used anywhere? For example, a Sears Mastercard or a BestBuy Visa?

[justbroke]

Branded VISA and Mastercard are usually not PMSI. You should check the cardholder agreement, but usually only the store cards themselves (Sears Store Card and not the Sears Discover). I think that Best Buy may no longer have the clause as that card portfolio was acquired by CitiBank.

I think the key is that the major cards (VISA, Mastercard, Discover, AMEX) don't allow PMSI on the purchases.

[Ekop785]

So Target, JCP, Wayfair, Macy's, etc. would all be PMSI cards? I think I should be good.

Only one of my cards is a 'store' card that can't be used like a regular credit card (can only be used for that store). Fortunately, I had not used it in a long time, if that helps.

[justbroke]

Generally speaking, yes. Those store cards issued almost certainly have a purchase-money security interest, or PMSI, in all purchases.