Introduction
Customers have long been accustomed to using Comenity Bed Bath & Beyond Credit Card to give them exclusive rewards, discounts and financing opportunities when shopping at Bed Bath and Beyond. This retail credit card was managed by Comenity Bank and became a favorite among serious shoppers who spent a lot of money on home goods, decor and necessities.
However in 2023, Bed Bath and Beyond went bankrupt, impacting its stores, as well as its financial assets, such as the co-branded credit card. A lot of people that had a card were left wondering: What will happen to my account? Can I still use my card? What are my options now?
This tutorial offers a detailed description of The Comenity Bed Bath And Beyond Credit Card, its history, closure, alternatives, the rights of consumers as well as what you should do in the event that you still have an open account with Comenity.
We will also connect to governmental sources of information about credit and consumer protection by linking to the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and USA.gov.
What Was the Comenity Bed Bath and Beyond Credit Card?
Both the Comenity Bed Bath and Beyond Mastercard and the store card version were credit cards that were issued by Comenity Bank, a credit lender that had a long history of working with retail brands.
Key Features of the Card
- Rewards Program – Get points earned on purchases at Bed Bath and Beyond and other stores associated with it.
- Special Discounts – Customers were provided with special promotional offers.
- Financing Alternatives – Deferred interest and installment payments.
Two Versions –
- Comenity Mastercard: Accepted anywhere that Mastercard was accepted.
- Comenity Store Card: Only at Bed Bath and Beyond and partner stores.
Why It Was Popular
This card was popular with customers as it provided a discount on bulk items in the home and provided returning customers with a reason to continue spending at Bed Bath and Beyond.
The Bankruptcy and the Effect to Cardholders.
Bed Bath & Beyond Bankruptcy (2023)
Bed Bath and Beyond declared Chapter 11 bankruptcy in April 2023 bringing all its stores in the US to a halt. And with this, the future of the Comenity-issued cards was still unknown.
- Liquidation selling started by stores.
- Rewards programs were abandoned.
- Most of the customers got mixed up with the pending balances and payments.
What Has Become of the Credit Cards?
As the shopping benefits were removed, Comenity Bank continues to have cardholder accounts. This means:
- The card does not work at Bed Bath and Beyond stores (which are closed down).
- There is still a balance to pay.
- There are still interest and fees up to the time when the balance is paid.
To learn about the effect of bankruptcy on consumer contracts, visit the guide U.S. Courts Bankruptcy Basics.
What to do should you still have a Comenity Bed Bath and Beyond Credit Card.
Check Your Account Status
Check whether your account is open or not in the account center of Comenity Bank. There are reports that some of them were converted to other Comenity retail cards.
Continue Making Payments
The retailer may be out of business, but you are on the hook to pay off your balance. If you stop paying, it could:
- Damage your credit score.
- Take to debt collections.
- Raise your interest rates.
The Consumer Financial Protection Bureau (CFPB) has outlined information on credit card debt.
Know Your Consumer Rights
- Billing disagreements – You can dispute false bills.
- Interest rates – The bank is required to tell you what your APR is.
- Debt collection laws – Under the Fair Debt Collection Practices Act (FDCPA), you are safeguarded against harassment.
Substitutes to the Comenity Bed Bath and Beyond Credit Card.
As this is no longer a viable card, you may look at other cashback or retail credit cards.
General Cash-Back Cards
- Discover it Cash Back – 5% cash back that changes categories every three months.
- Chase Freedom Unlimited – 1.5% (cash back) flat rate.
Retail Alternatives
- Target RedCard – 5 percent off Target purchases.
- Amazon Prime Visa Rewards – 5% back at Amazon and Whole Foods.
Federal Resources on Selecting credit cards.
Prior to applying to a new credit card, read:
Credit Management after the closure of Bed Bath and Beyond.
Impact on Your Credit Score
Sealing a retail card can have a very minor impact on your credit usage percentage and length of credit history. To minimize impact:
- Keep other credit accounts.
- Pay balances in full.
- Keep a check on your credit report.
AnnualCreditReport.com gives you a free annual credit report (as the law permits).
How to keep Yourself Safe Against Fraud.
As stores close and even go bankrupt, scammers can make attempts to confuse the customers. The Federal Trade Commission (FTC)
gives advice on how to prevent fraud, including:
- Ignoring unsolicited proposals to take off debt.
- Confirming communication with Comenity Bank is a good idea.
- File a report of identity theft at IdentityTheft.gov.
Cancellation of Debt Tax.
In some cases of bankruptcy or credit, forgiven debt may be taxable income.
- When Comenity writes-offs some of your debt, you may get a Form 1099-C.
- In most instances, the IRS requires a reporting of cancelled debts.
See the IRS page on Cancelled Debt.
Frequently Asked Questions (FAQs).
Will my Comenity Bed Bath and Beyond card work?
No, the card is no longer applicable when making new purchases as the stores have closed.
Do I pay my balance anymore?
And yes you have a legal obligation to repay any balance outstanding to Comenity Bank.
Will this act of closing this card damage my credit?
It can lead to a minor decline, but can be compensated by proper handling of your other accounts.
Am I able to change to another Comenity card?
Comenity bank may offer conversion of some customers to other store cards.
What are the sources of government resources to check?
Conclusion
The Comenity Bed Bath & Beyond Credit Card is a tool that was useful to a shopper, but since the retailer has been shut down, the card is no longer valuable to making purchases. However, the card holders will still need to repay and credit score themselves.
With knowledge of your consumer rights, research on other sources of credit, and official U.S. government resources, you can be able to make educated choices regarding your financial future.
The retail environment can vary, but prudent management of credit is the most important factor in staying afloat financially.
READ MORE: Step-by-Step Guide: How to Build Credit with a Secured Credit Card in the USA
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