Is Your Money Safe in Your Bank?
Be Careful Where You Keep Your Money
When entering into a debt settlement program you need to know if your money is safe or not. If you enter a debt settlement program, and enter a credit card from the same banking institution (or an affiliate), the bank has something called “the right to offset”.
The Right to Offset Definition: The legal right of a bank to seize deposited funds to cover a loan that is in default.
This means that they can offset the debt you owe them by going into your bank account and taking what they consider rightfully theirs… which could be everything you have.
Don’t say I didn’t warn you. Never bank with any insitution that you also owe money to. You never know what could happen. Death in the family, divorce, loss of job, loss of income, disability… etc.
With banks buying eachother out right and left, how do you know if your money is safe? I could provide a list here, but it could change by tomorrow, so I am hesitant. Chase just bought out Washington Mutual. Sears credit card is really owned by Citi. Best Buy credit card is owned by HSBC.
The best thing for you to do is call your bank and ask them.
Recently I heard of a woman in a debt settlement program who made sure she changed her bank from one of her creditors to a bank that had no affiliation with any of the creditors she owed. Unfortuantely, she forgot that she was a co-signer on her sons account, and the bank wiped him clean. They have no recourse. There is nothing they can do. It is the Banks Right to Offset.
When you are thinking about your banking affiliations, think them through hard. You don’t want to cause detriment to any one elses account either!
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