What can bank do?

[Gracie3787]

What is the name of your state (only U.S. law)? GA.
I have a checking account with Bank of America. I also have 2 credit cards with Bank of America. I have run into some financial difficulty and am afraid that next month I will be unable to pay the minimum payment required on one of the cards. The card has a large balance, almost $6,500.

My question is:

If I cannot make the minumum payment on the card, can the bank take the money out of my checking account, with, or without notification?

I don't know if it makes any difference or not, but the only money in my checking account is my small SSDI that is direct deposited on the third of the month.

 

[Antigone*]

What is the name of your state (only U.S. law)? GA.
I have a checking account with Bank of America. I also have 2 credit cards with Bank of America. I have run into some financial difficulty and am afraid that next month I will be unable to pay the minimum payment required on one of the cards. The card has a large balance, almost $6,500.

My question is:

If I cannot make the minumum payment on the card, can the bank take the money out of my checking account, with, or without notification?

I don't know if it makes any difference or not, but the only money in my checking account is my small SSDI that is direct deposited on the third of the month.

Hello Gracie,

The bank does have the right of offset, but I personally have not seen it used to offset a credit card account with a depository account. The account will most likely be sent to collection if it gets extremely past due.

For the moment, if you do not have an auto debit set up already then nothing should occur.

You really want to be proactive and speak to the bank about your situation. See if any arrangements can be made to help you out during this difficult time. Don't let the situation get away from you by ignoring it. You will most likely have a better outcome this way.

Take care, ana

 

[Gracie3787]

Hello Gracie,

The bank does have the right of offset, but I personally have not seen it used to offset a credit card account with a depository account. The account will most likely be sent to collection if it gets extremely past due.

For the moment, if you do not have an auto debit set up already then nothing should occur.

You really want to be proactive and speak to the bank about your situation. See if any arrangements can be made to help you out during this difficult time. Don't let the situation get away from you by ignoring it. You will most likely have a better outcome this way.

Take care, ana

Thank you. I do not have auto debit, and I have already planned to contact the bank. The interest rate is high on the largest balance. I'm wondering if they might agree to lower the interest rate, I'm hoping that my history of always paying on time and paying more than the minimum will work to my advantage. I just worry that they will be able to take money out of my checking account and I won't be able to pay for my new medications.

My husband and I are also thinking about bankruptcy as a last resort, but first I'll try to pay the debts. Thank you for your reply.