Penfed security interest form 🤔

[Yasselife]

Can someone please explain what this is about?  I'm trying to apply for a card and don't remember seeing this on my previous application. Thanks

[GZG]

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@Yasselife wrote:

Can someone please explain what this is about?  I'm trying to apply for a card and don't remember seeing this on my previous application. Thanks

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I would assume it means that they are authorized to take money from any PenFed bank accounts you have w/them to cover your PenFed CC debt in the event of default 

But I would wait for additional DPs

something like this: 

https://www.reddit.com/r/NavyFederal/comments/qnpncq/thank_you_navy_federal_for_taking_my_entire_lif... 

[Hex]

I think cross collateralization is standard for all credit unions. If I'm wrong someone will correct me shortly I'm sure. 

[Yasselife]

@GZG  This answers my question. Thank you!

[OmarGB9]

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@Hex wrote:

I think cross collateralization is standard for all credit unions. If I'm wrong someone will correct me shortly I'm sure. 

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Not just CUs. Regular big banks, too.

[zerofire]

No offence but which banks use a cross collateralise clause? I do not believe I have ever seen a bank try to use one. I have only seen it used by CU's as a defensive measure.

[OmarGB9]

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@zerofire wrote:

No offence but which banks use a cross collateralise clause? I do not believe I have ever seen a bank try to use one. I have only seen it used by CU's as a defensive measure.

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I was just going off some DPs in this thread, about BoA in particular. Granted, it's a decade old, so that may not be the case anymore.

[GZG]

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@OmarGB9 wrote:

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@zerofire wrote:

No offence but which banks use a cross collateralise clause? I do not believe I have ever seen a bank try to use one. I have only seen it used by CU's as a defensive measure.

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I was just going off some DPs in this thread, about BoA in particular. Granted, it's a decade old, so that may not be the case anymore.

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BoA didn't care for me.

I had more than enough to PiF my CO with them in their accounts and they just let it sit there.

[zerofire]

Bank of America did those before there was tightening on how banks need to safeguard the deposit accounts. Today they leave the money in the deposit account and rack up interest. They no longer write those clauses in I belive.