@KingAdrock wrote:
Actually, under federal law right of offset cannot be used to pay off your credit card balance.
I stand corrected...partially.
Apparently, it depends on what type of credit card account it is (business or consumer), what kind of entity the cc lender is (national bank or credit union, etc.) , and what state that entity is in as well. It may also involve whether or not the funds in the deposit account are from Social Security benefits or not, too.
I just did a quick check on it, and those are the variables related to this that I have found in the few moments I spent looking. Other types of loans (such as auto loans) are subject to "right of offset", and regs vary with location of the lender and more.
The reason I mentioned "right of offset" in the first place was from pre-approved apps sent to me by BofA. The small print always mentions "right of offset" specifically, involving deposit accounts held by them or any of their affiliates. I just assumed that this could be the case with any accounts at any deposit institution which issues credit cards, but I avoided BofA because they specifically mentioned it in their terms.
Federal law does limit or prevent right of offset for credit card debts, depending on circumstance.
Mea Culpa.
(P.S. - I still wouldn't deposit any money with Amex, just like I wouldn't open a joint checking account with a temperamental ex-wife! )
Carry on...
