Opened a Penfed account a few months ago (credit card, and a couple of their bank accounts).
They’ve been sending me a form that basically signs permission that they can offset any debt I owe on the card against the checking account.
I was always under the impression that banks can do that so why the form?
I any event , I’m not down w signing anything as I don’t imagine not signing this would make them close the account. Any signature they needed was the application itself. Right ?
They’ve been sending me a form that basically signs permission that they can offset any debt I owe on the card against the checking account.
I was always under the impression that banks can do that so why the form?
I any event , I’m not down w signing anything as I don’t imagine not signing this would make them close the account. Any signature they needed was the application itself. Right ?
All i know if they dont get a form they send via mail back signed they wont update account or at least thats been my experience ie cli . Not sure whats the problem agreeing, i know Navy does this and its the price to pay to use their products. Dont burn, no need to worry imho
Found the answer:
https://www.helpwithmybank.gov/get-answers/bank-accounts/right-of-offset/faq-bank-accounts-right-of-...
“federal law limits what a bank can do in some cases. For example, federal law won’t allow a bank to offset your deposit account to pay off your consumer credit card account”
<— interesting. I can’t imagine we had such pro retail consumer laws on the books.
I only keep the bare minimum to waive the AF and don’t use them for everyday banking but generally I don’t like overreach by institutions.
https://www.helpwithmybank.gov/get-answers/bank-accounts/right-of-offset/faq-bank-accounts-right-of-...
“federal law limits what a bank can do in some cases. For example, federal law won’t allow a bank to offset your deposit account to pay off your consumer credit card account”
<— interesting. I can’t imagine we had such pro retail consumer laws on the books.
I only keep the bare minimum to waive the AF and don’t use them for everyday banking but generally I don’t like overreach by institutions.
Know it sucks but im imagining they might close your card accounts...
I know quite a bit about NFCU and setback.... experience dealing with a friend whose experienced it....
Navy never requested a form like Penfed seems to be doing now.. I actually would like to give them kudos for making it clear to folks..
In fact Navy has gotten in hot water in HOW they do setback in the past... Seen what theve done to him...
(and im pretty sure its a no-no... theres something about them not being able to touch savings accounts but checking is free game, even though even NFCU is supposed to abide by rules on how they deal with setback and SS).... So somehow funds got transferred out of the savings and into checking then they snarfed them for setback .....
Thank you. The form actually authorizes them to tap any of your Penfed accounts.
If this is part of my car holder agreement then my application in itself is consent.
By asking it after the fact it sounds like it’s an extra right they’d like to have that is not contemplated in the cardholder agreement.
Given that Penfed has over $10b in assets there subject to CFPB oversight.
I think I’ll be fine and if they close my account l will sic CSPB on them.
By asking it after the fact it sounds like it’s an extra right they’d like to have that is not contemplated in the cardholder agreement.
Given that Penfed has over $10b in assets there subject to CFPB oversight.
I think I’ll be fine and if they close my account l will sic CSPB on them.