TRU - "R"Us Credit Card Accounts Closing

[FM]

My wife and I got new "R"Us credit cards in the mail yesterday and while trying to activate them we were told in a recording that the account had been closed.  Today I spoke with a 3rd-level employee (the last link in the "I want to speak to your supervisor" chain) at Synchrony Bank, the issuer of "R"Us Credit Cards.  I was told that with TRU's bankruptcy and liquidation, Synchrony's client services group is closing and ALL "R"Us credit card either have been or shortly will be closed.  My account was closed yesterday 5/9.  As for now technically the accounts are still active, but cardholders cannot make purchases.  We can only make payments.

Since Synchrony Bank is in the private label credit card business I assumed that the accounts would be sold or transferred to another bank (since banks are in the business of making money and not losing paying customers) and we'd be issued new cards.  Per their 5/3 earnings call, they describe a transition plan for cardholders to Synchrony Mastercard (below).  That conflicts with what I heard on the phone today- that our account has been closed and cannot be reopened.  So there may or may not be a new card issue coming.  So continues the TRU saga.

 

From Motleyfool: https://www.fool.com/investing/2018/05/03/5-things-synchrony-financials-management-wants-you.aspx

We can manage adverse partner events

The current fierce disruption in the retail industry has exposed one of the pitfalls for a credit issuer like Synchrony in dealing with retail partners: an increasing possibility that a household name may declare bankruptcy. 

In such cases, Synchrony seeks to maintain the relationship with the cardholder. It's a multistage process, and the company first reaches out to remind customers that they're still responsible for their revolving credit accounts, regardless of the retailer's bankruptcy.  

CEO Keane also cited the bankruptcy of Toys R Us to illustrate the organization's approach to controlling credit delinquencies and avoiding charge-offs. Synchrony has offered to transition Toys R Us cardholders to the Synchrony Mastercard, adding an attractive 2% cash-back feature on all purchases to incentivize conversions.

Edited May 10, 2018 by FM

[Alpinemaps]

I thought the switch over was going to be automatic, like you did.  But if not, that's fine.  I don't mind getting rid of the card all together.  We only used it for TRU or points related purchases and paid it off monthly.

[Sharkbait]

Funny, I've been getting these emails

 

2% Cash Back + Great Benefits with the Synchrony® Mastercard®*

As the issuer of the “R”Us Mastercard^®, Synchrony Bank would like to thank you for being a valued account holder. We will soon be sending qualified account holders a Synchrony Mastercard to replace their existing “R”Us Mastercard. The Synchrony Mastercard offers a rewards program that allows account holders to earn 2% cash back as a statement credit on all purchases made with the card.

Edited May 10, 2018 by Sharkbait

[FM]

Congrats lol.  I must have missed the credit cutoff.  And agree with Alpinemaps - I only used it for TRUTH/TRUST and paid it off.

Sniff... I remember the day I got that card: 2016 TRU pre-Christmas sale.  40% off Emma's House, Technic Crawler Crane, Scooby Mansion, Ferrari Truck, Deep Sea Base, retired TRU-exclusive SW + $10 off $75 coupon + 15% in points on Saturday.  It was definitely the only time I maxed out a $2500 credit card 4 hours after it being issued.

[SLL]

20 hours ago, FM said:

Congrats lol.  I must have missed the credit cutoff.  And agree with Alpinemaps - I only used it for TRUTH/TRUST and paid it off.

Sniff... I remember the day I got that card: 2016 TRU pre-Christmas sale.  40% off Emma's House, Technic Crawler Crane, Scooby Mansion, Ferrari Truck, Deep Sea Base, retired TRU-exclusive SW + $10 off $75 coupon + 15% in points on Saturday.  It was definitely the only time I maxed out a $2500 credit card 4 hours after it being issued.

RIP good old days...