Lien

Orca11 · 10-10-2007, 07:47 PM

Can a credit card company put a lien on your checking or savings account? For example, if you owe $10,000 on your credit cards and you have $1,000 in your savings and checking account, can the bank take the monies through an attorney or take it themselves?

centex · 10-10-2007, 07:51 PM

With a judgment in hand or if the cardholder account was with a financial institution which incorporated cross-collateralization into the terms, then yes, they can levy the account. Cross-collateralization happens most frequently with credit unions.

Orca11 · 10-10-2007, 07:55 PM

Quote:

Originally Posted by centex

With a judgment in hand or if the cardholder account was with a financial institution which incorporated cross-collateralization into the terms, then yes, they can levy the account. Cross-collateralization happens most frequently with credit unions.

Thanks Centex but can you explain what cross-collateralization is?

hannah · 10-10-2007, 09:25 PM

Quote:

Originally Posted by Orca11

Thanks Centex but can you explain what cross-collateralization is?

Don't know where Centex is but cross-collateralization is a term used when the collateral for one loan is also used as collateral for another loan. The answer to your question however is that if you have a credit card AND a checking or savings with the same bank, you may indeed be cross-collateralized. You will need to read your terms for your accounts but if the terms of your cc is such that your checking or savings can be used as collateral for the cc balance, then yes, they can take it if you default.

Enigma · 10-10-2007, 10:06 PM

Also look for the term called "right of off set". Which basically means that the bank would have the right to off set their losses with any assets you may have with the bank.

That is, default on a CC and have $xxx.xx in a checking or savings account and they can seize that $xx.xx to off-set their loss.