Comments on: Credit Unions Can Seize Funds to Cover Credit Card Defaults

By: BillyOceansEleven

BillyOceansEleven — Tue, 27 Jan 2009 15:10:53 +0000

This reminds me of when I worked as a bank teller in college. We had a lot of people who would have credit cards and loans default or run checking accounts so negative we closed them down and eventually charged them off. Anyway, a lot of these same people who owed the bank money on charge-offs would still come in to cash checks, so the bank actually instructed us to apply the funds from the check presented to the bad debt rather than giving it to the customer. And to answer the question some are wondering, this was a fairly large regional bank and not a little one branch shop.

Looking back on it this seems really jerky, but the point is to not think you can continue using the other services of a bank or credit union if you owe them money without the risk of some adverse action.

By: thomas

thomas — Tue, 27 Jan 2009 04:40:15 +0000

That’s called good business. I love my Credit Union.

By: Danielle

Danielle — Sun, 25 Jan 2009 18:36:58 +0000

PS of the 2 credit unions we are a part of, one of them doesn’t even offer a credit card.

By: Danielle

Danielle — Sun, 25 Jan 2009 18:32:18 +0000

I assume it would just be other accounts held at that credit union? I would never use my online savings account as collateral on a credit card!

By: threadbndr

threadbndr — Fri, 23 Jan 2009 20:41:25 +0000

Still, my local CU (I belong to two) have current VISA rates between 5.99 and 7.99 %. And they report to the credit bureaus as standard credit cards, not secured credit cards.

By: Shawn

Shawn — Fri, 23 Jan 2009 04:14:29 +0000

There’s nothing like loaning the bank $1000 in a savings account earning 0.25% just to turn back around and borrow your $1000 back on a credit card at 19+%.

By: Heather

Heather — Fri, 23 Jan 2009 00:38:21 +0000

Hubby and I are debating about wether or not to take the $7500 from the government for being first time home owners. In 2 years we will have to start paying “them” back $500 for the next 15 years. If we were to sell our house in that time and do not make a profit the debt would be forgiven. I’m not sure I want to owe anyone anything, hubby thinks it’s basically an interest free loan that can be used to finally get us debt free. What’s your take on this?

Thanks!