My 5Star Bank Secured Card Was Sold to UMB Bank. They Want Money.

“Dear Steve,

UMB Bank inherited this debt from 5Star Key Bank. Even though this was only one account, a credit card secured with my original $750 payment, UMB Bank now claims that I owe them $750 becuase they claim that there was a savings account and a credit card. They claim that
the check that they sent to me in December 2013 to close out the account was for the savings account and not for the credit card. There never was two accounts. How could there be. The Bank stopped mailing me statements after the account was closed in 12/2013.

ACCOUNT NUMBER: XXXXXXXXXX1675 Exp Date: 03/15 Since 1990
Attention: Account Rep.

I have had this SECURED Credit Card since 1990. At that time I had placed $750 of my own money with 5Star bank since this was a secured card.

Over the years I have used this card and then decided to cancel it back in December 2013.
At that time the bank mailed me a check for $538.45 on December 20, 2013 to close this account. ($568.45 minus a filing fee of $30.00).

Again, this was a secured credit card that had my money in it to use as collateral.
Therefore, I do not owe you $765.74. This account has been closed since December 2013.
Henceforth, please send any and all correspondence re: this matter to my attorney.
Your cooperation in this matter is greatly appreciated.

Thank you.


Dear Robert,

I don’t think there is anywhere to get clarity with this without intervention. You may want to start by filing a complaint with an official agency to try and sort out what happened.

I would suggest you file a complaint with the Consumer Financial Protection Bureau, here.

You should also contact the State Banking Commissioner in your state and find out what assistance they can give you in this matter.

I have seen secured cards convert to unsecured credit cards and it seems the heart of this issue is if you actually did have a balance on the card at the time you closed it and if you did and the deposit was sent to you but your balance remained on your statement, you could owe that money.

See also  I Got a Secured Card But My Credit Score Didn't Shoot Up. - Cary

Please post your responses and follow-up messages to me on this in the comments section below.


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Steve Rhode

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