magnolia Posted July 7, 2007 Report Share Posted July 7, 2007 This is my first post to a forum. I wish I had discovered this site long ago.Bank of America just emptied my BofA savings account (over $3,000) to pay a past due BofA credit card account. Can they do that? I'm in shock. I had recently made a payment arrangement by telephone to pay the debt in installments. I've had a confusing, sporadic, but relatively constant conversation with BofA over the past year about two accounts they purchased from another company.It's now the weekend, and I'm terrified that my checking account is next. Should I call? Close my checking account?I have truly appreciated all of the knowledge shared in these forums, and would be grateful for a response. Link to comment Share on other sites More sharing options...
direred Posted July 7, 2007 Report Share Posted July 7, 2007 Uhh, if you kept your money in their accounts, yes they can do that (without a lawsuit). It's called cross-collateralization.And yes, I'd move the checking account if it's also there. Link to comment Share on other sites More sharing options...
CleverCynic Posted July 7, 2007 Report Share Posted July 7, 2007 Sorry this doesn't compute. I was lost when you were saving while in debt?? Why didn't you use some of that for minimum payments? Interest on savings is way less than interest on cc debt. Link to comment Share on other sites More sharing options...
direred Posted July 7, 2007 Report Share Posted July 7, 2007 I was lost when you were saving while in debt?? Why didn't you use some of that for minimum payments? Interest on savings is way less than interest on cc debt.Well yeah, there is that. But still.... Link to comment Share on other sites More sharing options...
Sultan Posted July 7, 2007 Report Share Posted July 7, 2007 Bank of America just emptied my BofA savings account (over $3,000) to pay a past due BofA credit card account. Can they do that? I'm in shock. I had recently made a payment arrangement by telephone to pay the debt in installments. I've had a confusing, sporadic, but relatively constant conversation with BofA over the past year about two accounts they purchased from another company.WAIT! BACK THE TRAIN UP RIGHT THERE.BOA PURCHASED WHAT?NONE OF THIS MAKES SENSE. Maybe you could explain this better.COULD THIS OTHER COMPANY perhaps be MBNA? Link to comment Share on other sites More sharing options...
unusualsuspect Posted July 7, 2007 Report Share Posted July 7, 2007 Find yourself a new bank. More likely than not, they'll take the checking account too. Link to comment Share on other sites More sharing options...
bigjohnstud4200 Posted July 7, 2007 Report Share Posted July 7, 2007 I would head for the hills to a new bank account if I were you. Link to comment Share on other sites More sharing options...
gypsie Posted July 7, 2007 Report Share Posted July 7, 2007 I think the motto here is "live and learn"..... it sucks, but lesson learned - don't make that mistake again Link to comment Share on other sites More sharing options...
Sultan Posted July 7, 2007 Report Share Posted July 7, 2007 I'm still curious for an answer to my question above, - again, - BOA purchased from whom? please provide more information.Bank of America just emptied my BofA savings account (over $3,000) to pay a past due BofA credit card account. Can they do that? I'm in shock. I had recently made a payment arrangement by telephone to pay the debt in installments. I've had a confusing, sporadic, but relatively constant conversation with BofA over the past year about two accounts they purchased from another company. Link to comment Share on other sites More sharing options...
direred Posted July 7, 2007 Report Share Posted July 7, 2007 COULD THIS OTHER COMPANY perhaps be MBNA?Or Fleet. Link to comment Share on other sites More sharing options...
elyse449 Posted July 8, 2007 Report Share Posted July 8, 2007 Well, savings is typically SUPPOSE to be either for retirement, vacations or for those rainy days when you maybe are low on cash and need excess "slush" funds to cover your outstanding debts. See, even though we're out of work our bill collectors STILL expect us to pay our bills, isn't that crazy? LOL...well, you get the idea...I do agree, you should've paid what you owed w/ at least SOME of that savings. Of course this is someone (I am referring to myself) that isn't even at the point where I can save for such a fund yet....lol, so I'm in a pickle myself...trouble WAITING to happen.Sadly, cross collaterization is legal and I would strongly recommend you close out your current accts w/ them and/or ANY of their subsidiaries. Make sure you OPEN new accounts FIRST, though-if possible.What is the remaining debt owed for this account?I am sorry this happened, but let this serve as a learning tool for you. And buck up, we all make mistakes--we all get blind sided, it happens. We're here for you.Elyse Link to comment Share on other sites More sharing options...
CleverCynic Posted July 8, 2007 Report Share Posted July 8, 2007 You can save when you have installment loans like houses and cars. However, when there is any amount of money on a credit card, it is ALWAYS much better financial sense to pay it down as much as possible before putting money aside in a 3% account. Doing so creates the ILLUSION of saving and responsible actions, but putting that money aside is costing itself many times over by not putting out the biggest fire. And when you do a snapshot of what you owe and what you've saved, you'll find you havne't saved anything anyway... just costing yourself interest. So, I would revamp that plan to CARDS for rainy day or vacation with savings being the norm, then a suspension of saving upon return from a trip to knock the debt out. Another example, me, I live almost entirely on student loans. I will be accruing upwards of 200k. So, this is not the time in my life to save, it's a time to invest. Putting even $100 in savings just means I should have taken $100 less from my loan company and avoided compound interest over years. Just sayin' Link to comment Share on other sites More sharing options...
magnolia Posted July 9, 2007 Author Report Share Posted July 9, 2007 MANY thanks to all of you who replied regarding my question. I truly appreciate your advice (both the sympathy and well-deserved the kicks in the pants).The credit card account WAS previously an MBNA account. I sense a history -- are there previous posts I should read about MBNA accounts transferred to BofA?I was making payments on my debt, but I was using my savings account to accrue money for a vacation. I haven't used a credit card or incurred new debt in 3 years. I've been in total avoidance of my financial situation -- relying on automatic online payments and not opening the mail, not paying attention when payments didn't go through or accounts got behind -- very very stupid stuff. Now I'm ready to fix it, and I'm grateful to have the benefit of others' experience. Link to comment Share on other sites More sharing options...
WCAdjATL Posted July 10, 2007 Report Share Posted July 10, 2007 Wow Magnolia...I must say you're handling this a lot better than I would be. Three grand? Sheeeee*t...I'd probably throw myself in front of a bus. I wouldnt have seen that coming either...I never would have thought an old MBNA account would have me in trouble with BoA. Are you eligible for membership in any sort of credit union? If so get down there and open another account RIGHT NOW, and then empty every cent out of BoA. B*stards...that sucks and I hate to hear it. Link to comment Share on other sites More sharing options...
Moneedshelp Posted July 10, 2007 Report Share Posted July 10, 2007 Thanks for sharing. We newbies can all learn from the experiences of others!! Link to comment Share on other sites More sharing options...
Recommended Posts