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NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.

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Sweets8E
Frequent Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.

That's a pretty nifty idea. I wouldn't have thought to do this, but if I had, I'd probably not have the guts to go through with it. Navy Federal is a good lender, but ohhhhhh man, when they get mad, they get mad. They take dang near borderline criminal steps to recoup their losses. I know all about it.

 

What you didn't isn't illegal, it's just what everyone else said it is. Gaming the system and thus frowned upon. They probably view it like you're messing with their bottom line and ability to make money off of the interest. Their hope in situations like balance transfers is that you're unable to pay off the entire amount in the allotted time frame and will then be responsible for interest after that. If you transfer out a balance, only to bring it right back in and then let's say you do pay it in full before the 12 months is up, you've taken money out of their pockets.


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Message 21 of 60
navigatethis12
Valued Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@youngandcreditwrthy wrote:
I get what everyone is saying here...

But I mean... aren't bt offers supposed to be for this kind of stuff?!?!

It's called managin cash flow and finances, which are reasons why credit cards came into existence.


No that is not what balance transfers are for. Any lender would get suspicious if they see balance transfers back and forth between accounts very often. They could see it as money laundering and will not appreciate it.

 

Someone mentioned people putting balance transfer money in a savings or chequing account until the zero interest runs out, but most lenders do not care about that. If they did, they would not send the cheques to the cardholder with no name written in.

Message 22 of 60
McArthur
Regular Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.

Yes.  And no.

 

What took place was a kind of arbitrage and banks hate it.  

 

Why would a bank like, for example, Navy Federal give you free money for a year?  Because they are nice people?  No!  What they want to accomplish is, crudely put, fleece you of your money.  They want you to keep paying 10% on the money you already owe them and then shift another several thousand dollars of debt over to them by enticing you with no interest in the hopes that you'll not pay within the year and end up paying them interest on that money, too.  They also probably figure it will motivate you to incur more new debt on their card.  There's a reason Navy gives anybody with a pulse relatively high credit limits.

 

What the bank does not want to do is give you money to use to reduce the rate they already charge you.  That's why you cannot do a BT from your Chase Freedom to your Chase CSP.   Who in their right mind that's entitled to 10% from you gives you new money at 0% so you can pay off their 10%?  And that is exactly what OP did.  And he got caught.  It will not end pretty.

 

 

Message 23 of 60
McArthur
Regular Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@navigatethis12 wrote:

@youngandcreditwrthy wrote:
I get what everyone is saying here...

But I mean... aren't bt offers supposed to be for this kind of stuff?!?!

It's called managin cash flow and finances, which are reasons why credit cards came into existence.


No that is not what balance transfers are for. Any lender would get suspicious if they see balance transfers back and forth between accounts very often. They could see it as money laundering and will not appreciate it.

 

Someone mentioned people putting balance transfer money in a savings or chequing account until the zero interest runs out, but most lenders do not care about that. If they did, they would not send the cheques to the cardholder with no name written in.


Exactly!

 

The card companies that send those checks, though, typically will still charge you a BT fee even though the APR is 0%.

Message 24 of 60
McArthur
Regular Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@Sweets8E wrote:

That's a pretty nifty idea. I wouldn't have thought to do this, but if I had, I'd probably not have the guts to go through with it. Navy Federal is a good lender, but ohhhhhh man, when they get mad, they get mad. They take dang near borderline criminal steps to recoup their losses. I know all about it.

 

What you didn't isn't illegal, it's just what everyone else said it is. Gaming the system and thus frowned upon. They probably view it like you're messing with their bottom line and ability to make money off of the interest. Their hope in situations like balance transfers is that you're unable to pay off the entire amount in the allotted time frame and will then be responsible for interest after that. If you transfer out a balance, only to bring it right back in and then let's say you do pay it in full before the 12 months is up, you've taken money out of their pockets.


Yup!  Navy are mean and vindictive SOBs when mad.  Borderline criminal is an extremely appropriate description!  Smiley Happy

Message 25 of 60
navigatethis12
Valued Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@McArthur wrote:

Yes.  And no.

 

What took place was a kind of arbitrage and banks hate it.  

 

Why would a bank like, for example, Navy Federal give you free money for a year?  Because they are nice people?  No!  What they want to accomplish is, crudely put, fleece you of your money.  They want you to keep paying 10% on the money you already owe them and then shift another several thousand dollars of debt over to them by enticing you with no interest in the hopes that you'll not pay within the year and end up paying them interest on that money, too.  They also probably figure it will motivate you to incur more new debt on their card.  There's a reason Navy gives anybody with a pulse relatively high credit limits.

 

What the bank does not want to do is give you money to use to reduce the rate they already charge you.  That's why you cannot do a BT from your Chase Freedom to your Chase CSP.   Who in their right mind that's entitled to 10% from you gives you new money at 0% so you can pay off their 10%?  And that is exactly what OP did.  And he got caught.  It will not end pretty.

 

 


I did not understand that was what was going on. I was wondering why they would keep balance transfering multiple times between the cards. Balance transfers just seem so silly to me. Who would pay to pay off debt?

Message 26 of 60
McArthur
Regular Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@navigatethis12 wrote:

@McArthur wrote:

Yes.  And no.

 

What took place was a kind of arbitrage and banks hate it.  

 

Why would a bank like, for example, Navy Federal give you free money for a year?  Because they are nice people?  No!  What they want to accomplish is, crudely put, fleece you of your money.  They want you to keep paying 10% on the money you already owe them and then shift another several thousand dollars of debt over to them by enticing you with no interest in the hopes that you'll not pay within the year and end up paying them interest on that money, too.  They also probably figure it will motivate you to incur more new debt on their card.  There's a reason Navy gives anybody with a pulse relatively high credit limits.

 

What the bank does not want to do is give you money to use to reduce the rate they already charge you.  That's why you cannot do a BT from your Chase Freedom to your Chase CSP.   Who in their right mind that's entitled to 10% from you gives you new money at 0% so you can pay off their 10%?  And that is exactly what OP did.  And he got caught.  It will not end pretty.

 

 


I did not understand that was what was going on. I was wondering why they would keep balance transfering multiple times between the cards. Balance transfers just seem so silly to me. Who would pay to pay off debt?


BTs also seem crazy to me, too.  Still, there are a lot of people out there with 18% debt that would love to reduce it to 0%.  Navy is particularly attractive in that limits are generally high and in addition to 0% they have no BT fees.

 

Back when passive rates were higher, some would do a "BT" from their checking account to Navy and then use the cash for investment.  Imagine Navy giving you $25K for a year at 0% and you sticking that money into a 5% CD.  

Message 27 of 60
Joteism
Regular Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.

I'm intrigued - Please keep us up-to-date on this! I guess had you done the transfers over several days or weeks, no flag would have gone off.

 

I just have two secured cards and one AU, but I love the thought that banks wouldn't have thought through the entire process. And sometimes it's hard to believe that FCUs are non-profit...

Message 28 of 60
Revelate
Moderator Emeritus

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@Joteism wrote:

I'm intrigued - Please keep us up-to-date on this! I guess had you done the transfers over several days or weeks, no flag would have gone off.

 

I just have two secured cards and one AU, but I love the thought that banks wouldn't have thought through the entire process. And sometimes it's hard to believe that FCUs are non-profit...


Non-profit doesn't mean they don't want to make money Smiley Happy. It just means there's much tighter restrictions on how the money can be used, namely for the purposes of the organization itself (with some exceptions I think). 

 




        
Message 29 of 60
TATATA
Regular Contributor

Re: NFCU HAS BLOCKED ALL OF MY CREDIT CARD ACCOUNTS. I NEED YOUR HELP.


@McArthur wrote:

Yes.  And no.

 

What took place was a kind of arbitrage and banks hate it.  

 

Why would a bank like, for example, Navy Federal give you free money for a year?  Because they are nice people?  No!  What they want to accomplish is, crudely put, fleece you of your money.  They want you to keep paying 10% on the money you already owe them and then shift another several thousand dollars of debt over to them by enticing you with no interest in the hopes that you'll not pay within the year and end up paying them interest on that money, too.  They also probably figure it will motivate you to incur more new debt on their card.  There's a reason Navy gives anybody with a pulse relatively high credit limits.

 

What the bank does not want to do is give you money to use to reduce the rate they already charge you.  That's why you cannot do a BT from your Chase Freedom to your Chase CSP.   Who in their right mind that's entitled to 10% from you gives you new money at 0% so you can pay off their 10%?  And that is exactly what OP did.  And he got caught.  It will not end pretty.

 

 


Actually, I NEVER said that that's "exactly" what I did. I gave a premise more or less based on assumption. Again, I don't know the reason (exactly, as you put it) why this happened. There were other accounts that were paid-off (balance transferred) in the process, these however, were a few, and were close-ended loans that I could not transfer as with the credit cards. 

 

Additionally, it's interesting that you say I got "caught." I was NOT hiding anything nor running from anyone, and most importantly, I was NOT breaking the law in any way, shape, or form. Simply put, I was just doing balance transfers between different creditors. Again, I'll keep all of you posted. 

 

McArthur, I hope you're wrong againSmiley Happy

 

 

 

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Message 30 of 60
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