topic Re: Consumer Banking At AmEx Now Available To All in Credit Cards

Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 15:38:01 GMT

Just noticed this on their website the other day...AmEx now has savings accounts available to everyone (previously they were exclusively for wealthy clients).

Maybe this is a the first of many banking products to come from AmEx. I don't think I'd ever leave Schwab, but if anyone could get me to do it, it would be AmEx with their great customer service and competitive products.

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 15:47:19 GMT

Wait...I'm getting a vision...

Yes, it's a vision of future threads on these boards!

"Amex just cleaned out my savings account!!!! Can they do that???"

...and the replies will mention "right of offset".

No, thanks.

Re: Consumer Banking At AmEx Now Available To All

Red1Blue — Tue, 21 Jul 2009 17:11:27 GMT

They have been offering this for several years. I have savings and deposit accounts with Amex already.

Re: Consumer Banking At AmEx Now Available To All

KingAdrock — Tue, 21 Jul 2009 19:12:51 GMT

@Anonymous wrote:
Wait...I'm getting a vision...

Yes, it's a vision of future threads on these boards!

"Amex just cleaned out my savings account!!!! Can they do that???"

...and the replies will mention "right of offset".

No, thanks.

Actually, under federal law right of offset cannot be used to pay off your credit card balance.

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 19:14:22 GMT

@Red1Blue wrote:
They have been offering this for several years. I have savings and deposit accounts with Amex already.

They just became a bank holding company a few months ago...

Not to mention the article I just read that said "On June 1st American Express launched their first range of deposit holding products that don’t involve signing up for a credit card. Coming out of the gate with a High-Yield Savings account and an assortment of CDs ranging in terms from 3 to 60 months, American Express is seeing to it that their rates were competitive. With a 2.00% APY for their savings, they are neck and neck with other competitive banks such as Ally at 2.05% APY."

Not saying you're wrong, but I'm just wondering where you signed-up for these accounts with the pre-bank AmEx.

Message Edited by jaybird201 on 07-21-2009 03:14 PM

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 19:43:52 GMT

@KingAdrock wrote:
@Anonymous wrote:
Wait...I'm getting a vision...

Yes, it's a vision of future threads on these boards!

"Amex just cleaned out my savings account!!!! Can they do that???"

...and the replies will mention "right of offset".

No, thanks.
Actually, under federal law right of offset cannot be used to pay off your credit card balance.

Could you provide me with a citation for this?

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 22:54:04 GMT

FWIW Navy Federal Credit Union has included in their loan terms that funds may be taken from deposit accounts to cover delinquent loan balances at their discretion...

Re: Consumer Banking At AmEx Now Available To All

score_building — Tue, 21 Jul 2009 22:56:15 GMT

most if not all cu do afaik.

@Anonymous wrote:
FWIW Navy Federal Credit Union has included in their loan terms that funds may be taken from deposit accounts to cover delinquent loan balances at their discretion...

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 23:07:19 GMT

@score_building wrote:
most if not all cu do afaik.
@Anonymous wrote:
FWIW Navy Federal Credit Union has included in their loan terms that funds may be taken from deposit accounts to cover delinquent loan balances at their discretion...

Definite possibility. I know that several months ago Navy Federal sent out an e-message regarding the change in terms...lemme see if I can find it...there we go!

August 2008:

Important Notice for Credit Cardholders

Section 5 (Security Interest) of your Credit Card Agreement and Disclosure has been amended.

-----

5. Security Interest. You pledge to us a security interest in all your individual
and joint accounts at NFCU. By using your credit card, you authorize us to
apply funds held in your individual and joint accounts at NFCU to pay any
outstanding debt with NFCU. Also, any collateral used to secure other loans
with NFCU may be used to secure this account. The security interest does
not apply to funds in an IndividuBorrower’s primary residence.

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 23:23:21 GMT

Federal law says National Banks have a right of offset for open ended accounts. State chartered banks and credit unions are a different story. There is no one law that covers all financial institutions. All banks are also regulated by their own state laws.

Message Edited by hobojon on 07-21-2009 04:22 PM

Message Edited by hobojon on 07-21-2009 04:23 PM

Re: Consumer Banking At AmEx Now Available To All

Anonymous — Tue, 21 Jul 2009 23:20:54 GMT

@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...