What happens to the credit card application after the bank accepts it from the applicant? I have heard that they are bundled together wth other credit card applications and sold off to invetors in the secondary market as financial assets (securities). Is this true? Is this why I can't get it back?
2006-08-03 14:17:53 · 6 answers · asked by freeindeed12001 1 in Business & Finance ➔ Credit
The reason I ask this question is because I just started taking some banking/finance classes. In one of the textbooks it talks about securitization. I short it describes our promises to pay as financial assets that are then bundled together and a bond is issued by the bank backed by our original promise to pay (credit card applications) and sold into the secondary market to investors. The interest and principal payments are then passed onto the investor, while the bank collects a servicer fee for collecting the monthly payments from the debtor. The bank is thus acting as a servicer. I was just curious as to why this was not disclosed in the application before I signed it.
Just seems if we regular people did something like that we would find oureslves on vacation in the gray bar hotel!
2006-08-03 14:47:19 · update #1
They archive them for up to 5 years. They don't sell your actual application but some companies do sell your information to second parties to sell you goods.
2006-08-03 14:23:37 · answer #1 · answered by BeachBABE 4 · 0⤊ 0⤋
No, they're kept on file. It's a legal contract to prove you applied for the card.
2006-08-03 21:23:00 · answer #2 · answered by Dante 37 2 · 0⤊ 0⤋
My guess is your info gets typed into a computer and the form gets trashed
2006-08-03 21:23:03 · answer #3 · answered by Wizzy 2 · 0⤊ 0⤋
no... they review your credit history and decide whether or not to issue you a card... where did you hear that securuties nonsense?
2006-08-03 21:22:24 · answer #4 · answered by E-Rock 3 · 0⤊ 0⤋
The answer may be here.
2006-08-03 23:37:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Hmm.I don't know......
2006-08-03 21:21:15 · answer #6 · answered by Nikki 4 · 0⤊ 0⤋