Department Store National Bank: Who Powers Macy's Credit Card

Department Store National Bank (DSNB) issues both the Macy's Credit Card and the Macy's American Express Card. That name matters. When you see "DSNB" on your credit report or a court summons, you're dealing with a Citibank subsidiary—not Macy's directly.

The distinction changes how you handle disputes, debt negotiations, and lawsuits. This guide covers how DSNB operates, what happens when accounts go delinquent, and your legal options if you're facing a collection action.

Who Is Department Store National Bank?

DSNB operates as a specialized division of Citigroup, focusing exclusively on retail credit cards. The bank powers credit programs for major department stores, including Macy's, Bloomingdale's, and several other national chains.

When you apply for a Macy's credit card, DSNB runs the credit check, sets your credit limit, and handles all billing. Macy's handles the rewards program and customer service at the store level, but DSNB owns the financial relationship.

You'll find DSNB listed on:

• Your monthly billing statements
• Credit bureau reports from Experian, Equifax, and TransUnion
• Legal documents if the account enters collections
• Credit card agreements and terms of service

The bank reports to all three major credit bureaus monthly. That means late payments, charge-offs, and collection actions appear under "Department Store National Bank" on your credit report,not under "Macy's."

How Macy's Credit Cards Work

Macy's offers two card options through DSNB. The standard Macy's Credit Card works only at Macy's and Macys.com. The Macy's American Express Card functions anywhere Amex is accepted.

DSNB requires a credit score of 650 or higher for approval. The application triggers a hard inquiry that stays on your credit report for two years. If approved, you can expect:

• Variable APRs ranging from 24.99% to 31.24% (as of 2024)
• Credit limits between $300 and $5,000 for most cardholders
• Rewards points redeemable at Macy's properties
• Instant approval discounts up to $100

When you swipe your card, DSNB pays the merchant and bills you. You owe DSNB, not Macy's. That matters if you fall behind.

What Happens When You Miss Payments

DSNB follows standard credit card collection practices, but knowing the timeline helps you plan your response.

First 30 Days Past Due

You'll receive reminder emails and calls from DSNB's customer service team. Late fees of up to $40 apply. Your account remains current on your credit report during this window.

30 to 60 Days Delinquent

DSNB reports the late payment to all three credit bureaus. Your credit score drops,typically 60 to 110 points for a single 30-day late mark. The penalty APR kicks in, often jumping to the maximum rate allowed by your state.

60 to 120 Days Delinquent

Collection calls intensify. DSNB may freeze your account and revoke charging privileges. Each additional 30-day late mark compounds the credit damage.

120+ Days: Charge-Off and Collections

At roughly 180 days past due, DSNB charges off the account. The balance doesn't disappear. Instead, DSNB either handles collections internally or sells the debt to a third-party buyer like Midland Funding or Portfolio Recovery Associates.

Charge-offs remain on your credit report for seven years from the first delinquency date. You still owe the debt, and DSNB or a debt buyer can sue to collect.

DSNB Collection Lawsuits: What to Expect

DSNB sues delinquent cardholders more aggressively than many regional banks. In 2023 alone, Citibank entities (including DSNB) filed over 50,000 debt collection lawsuits in New York courts. Other high-volume states include California, Florida, and Texas.

If DSNB or a debt buyer sues you, the complaint typically claims:

• Breach of contract (you agreed to pay and didn't)
• Unjust enrichment (you kept the goods without paying)
• Account stated (you received statements and didn't dispute them)

The plaintiff will attach limited documentation: your signed credit agreement, account statements showing charges and payments, and an affidavit from a DSNB records custodian.

You have 20 to 30 days to respond, depending on your state. Ignoring the lawsuit guarantees a default judgment, which allows wage garnishment and bank levies.

Common Defenses Against DSNB Lawsuits

You don't need to prove you don't owe anything. You need to challenge the plaintiff's proof. Effective defenses include:

• Statute of limitations: If the debt is too old (3 to 6 years in most states), the creditor loses the right to sue.
• Lack of standing: If a debt buyer sued, demand proof they legally own the debt. Missing chain-of-title documents kill many collection cases.
• Improper documentation: DSNB must prove the balance with account statements. Generic affidavits without specific transaction records often fail.
• Payment disputes: If you made payments the plaintiff didn't credit, show bank records or canceled checks.

Filing an answer preserves these defenses. Courts dismiss cases where plaintiffs can't meet their burden of proof. In 2022, roughly 15% of debt collection cases in New York ended in dismissal or plaintiff withdrawal,almost always because the defendant filed an answer.

How to Handle a DSNB Debt Before a Lawsuit

If you're behind but haven't been sued, you have leverage. DSNB settles debts for 30% to 60% of the balance in many cases, especially if the account is nearing charge-off.

Negotiate a Settlement

Start by calling DSNB's collections department at the number on your statement. Ask about hardship programs, which may include:

• Temporary APR reductions to 0% or a low fixed rate
• Waived late fees and over-limit charges
• Extended payment plans (12 to 36 months)

If the account is already charged off, request a settlement. Offer 30% to 40% of the balance as a lump sum. If you can't pay a lump sum, propose monthly payments over 6 to 12 months.

Get the agreement in writing before sending any money. The letter should state the settlement amount, confirm the account will be marked "paid in full" or "settled," and include a release of all claims.

Consider Debt Relief Options

If you owe DSNB and other creditors, consolidation may help. Options include:

• Debt management plans: Nonprofit credit counselors negotiate reduced interest rates and combine payments into one monthly bill. Plans typically last 3 to 5 years.
• Debt settlement companies: For-profit firms negotiate lump-sum settlements. Fees run 15% to 25% of enrolled debt, and your credit takes a hit.
• Bankruptcy: Chapter 7 wipes out DSNB credit card debt in 3 to 4 months. Chapter 13 repays a portion over 3 to 5 years. Both stop lawsuits immediately.

If you're juggling multiple debts and lawsuits are piling up, bankruptcy might be the fastest way out. The automatic stay halts all collection activity the day you file.

Removing DSNB From Your Credit Report

Legitimate DSNB debts stay on your credit report for seven years from the first missed payment. You can't remove accurate negative information, but you can limit the damage.

If the Entry Is Wrong

Dispute errors with the credit bureaus and DSNB directly. Common mistakes include:

• Accounts you never opened (possible identity theft)
• Balances or payment histories that don't match your records
• Duplicate entries showing the same debt twice

File disputes online through Experian, Equifax, and TransUnion. The bureaus have 30 days to investigate. If DSNB can't verify the information, the entry gets deleted.

If the Entry Is Accurate

Pay or settle the debt, then request a "pay for delete" or goodwill adjustment. DSNB isn't required to remove accurate information, but some cardholders report success after settling accounts.

After settling, the account status changes to "settled" or "paid charge-off." That's better than "unpaid charge-off," but still damages your credit. Focus on building positive payment history with other accounts to offset the negative mark.

What to Do If You're Sued by DSNB

You have 20 to 30 days to file an answer, depending on your state. Miss that deadline and you lose by default.

Start by gathering documents:

• The lawsuit summons and complaint
• Any account statements or payment records you have
• Correspondence from DSNB or debt collectors

File an answer that denies the plaintiff's claims and raises affirmative defenses. Each state has specific formatting rules, but most answers include:

• Your contact information and case number
• Numbered responses to each paragraph in the complaint (admit, deny, or lack knowledge)
• Affirmative defenses (statute of limitations, lack of standing, failure to state a claim)
• A signature and certificate of service showing you sent a copy to the plaintiff's lawyer

Once you file an answer, the case enters discovery. The plaintiff must prove the debt. You can request:

• The original signed credit agreement
• Complete account statements showing all charges and payments
• Chain-of-title documents if a debt buyer sued
• Business records affidavits with proper authentication

Many plaintiffs drop cases or settle for less when defendants fight back. If you can't afford a lawyer, filing for bankruptcy stops the lawsuit immediately and may eliminate the debt entirely.

DSNB vs. Third-Party Debt Collectors

DSNB sometimes sells charged-off accounts to debt buyers like Midland Funding, Portfolio Recovery, or LVNV Funding. Once sold, DSNB exits the picture. The debt buyer becomes the plaintiff in any lawsuit.

Debt buyers are easier to beat in court. They often lack the original credit agreement or complete account statements. Challenge their standing and demand proof of ownership. If they can't produce the documents, courts dismiss the case.

Debt buyers also settle for less. DSNB might accept 40% to 50% of the balance, while a debt buyer may take 20% to 30%.