PENFED CLOSED MY 40,000 SECURED CREDIT CARD

[Anonymous]

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@smc733 wrote:

I can certainly understand that you must be feeling horrendously upset, especially since this was so unexpected.  But I think it would be more beneficial if you directed your anger in the right direction.

For instance, if Citi, Bank of America, PSECU, Alliant, Chase, USAA, Navy, etc...  were given a court order, they would ablidge and do the same.  A corporation/financial institution cannot deny a court order.  It does look suspicious to be on a payment plan for judgements, yet put $40,000 on a secured card.  I'm sorry to say, that really isn't your money until you pay back the people whose money you've spent.

Regardless, that was certainly not the way for things to go, but your cardmember agreement did clearly lay out terms for default (which this counts as), and you did agree to that default rate when you opened the account.  While they could have gone about informing you a little more tactfully, understand that they have to do all kinds of random things every day.  Don't direct your anger so much at penfed as whomever it was that ordered the judgement.

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+1

[Anonymous]

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@barbaralee wrote:

I called PenFed because I was curious exactly how high their credit limits on secured cards go and I couldn't find the info on the net. Rep told me $2000.

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That seems to be very much in line with what others have experienced with PenFed's policy on secured cards. 

[Anonymous]

Uh oh someone on this thread isn't telling the entire truth! No pointing fingers but....

[Anonymous]

$2000 against $40000? Interesting.

[flyingmd]

So is this whole thread based on a BS story?? I agree with everything said. No ethical attorney would touch suing as Penfed did exactly what they were cort ordered to. If the story is true, then you have to wonder about the responsibiloty of someone who would stiff 5 creditors and then have the to go get another credit card, putting in savings money that could have paid off the debts. Im sorry, but it is exactly because of consumers like this that we are were we are wi the credit crisis (not to sa cc and mortgage companies have blame as well). But if people only spent less than they made, we wouldnt be were we are now.

[Anonymous]

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@flyingmd wrote:
So is this whole thread based on a BS story?? I agree with everything said. No ethical attorney would touch suing as Penfed did exactly what they were cort ordered to. If the story is true, then you have to wonder about the responsibiloty of someone who would stiff 5 creditors and then have the to go get another credit card, putting in savings money that could have paid off the debts. Im sorry, but it is exactly because of consumers like this that we are were we are wi the credit crisis (not to sa cc and mortgage companies have blame as well). But if people only spent less than they made, we wouldnt be were we are now.

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And charging up 27K on the card, on top of it all??? If true, then that money could have gone towards paying off outstanding debts. No, something doesn't sound right here.

[Anonymous]

+1 to that.

I've never heard of a $40K secured card in all my days.  Even on these forums I've read the rare instances where AmEx has asked a person for a $10K deposit into a CD.  And that's AmEx...the most well known credit card for being "suspicious".  Quite frankly, this sounds like a classic case of severe money mismanagment and denial.  Or alternatively, living way above your means and trying to compensate (maybe the "rob Peter to pay Paul" approach) but most definitely someone is in denial.  This website has forced me to take a hard look at myself and my finances.  And quite honestly, I didn't like what I saw in the mirror.  I made admissions to myself about myself and now I keep the straight and narrow path.  Apparently, as it seems from this exciting thread, the OP might not be inclined to do that.  And so the wheels keep spinning.

[Anonymous]

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@Anonymous wrote:

+1 to that.

I've never heard of a $40K secured card in all my days.  Even on these forums I've read the rare instances where AmEx has asked a person for a $10K deposit into a CD.  And that's AmEx...the most well known credit card for being "suspicious".  Quite frankly, this sounds like a classic case of severe money mismanagment and denial.  Or alternatively, living way above your means and trying to compensate (maybe the "rob Peter to pay Paul" approach) but most definitely someone is in denial.  This website has forced me to take a hard look at myself and my finances.  And quite honestly, I didn't like what I saw in the mirror.  I made admissions to myself about myself and now I keep the straight and narrow path.  Apparently, as it seems from this exciting thread, the OP might not be inclined to do that.  And so the wheels keep spinning.

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And a +1 to this post, as well.

[luvsandyshores]

I think some people don't really understand what a judgment is.  They think it's just something that shows up on your credit report, like a chargeoff, and have the attitude that it's something they might have to get around to paying someday.

A judgment means someone else now owns whatever items of value you have, up to their judgment amount.  A really mean judgment holder could have the sheriff show up at your house and sell all your belongings to cover the amount owed.  Your wages can be garnished.  Your bank accounts can be seized.  A "nice" judgement holder will allow you to make payments.  They are not required to accept payments, or to accept less than is owed.

I used to have a judgment and didn't worry about it, since I had no money and owned nothing of value.  I forgot about the judgment for a while.  Then one day the judgment holder pulled my credit report, and boy did I get scared!  I paid it off shortly after that.

I would not have the _____ to stick $40k in an account somewhere and hope the judgment holder would not find it.  I would not be able to sleep for worrying over that money being seized!

I hope the OP can fight this if there is any question of the legitimacy of this judgment, but if not I hope they accept this as a very hard, painful life lesson and learn from it. 

[Anonymous]

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@luvsandyshores wrote:

I think some people don't really understand what a judgment is.  They think it's just something that shows up on your credit report, like a chargeoff, and have the attitude that it's something they might have to get around to paying someday.

A judgment means someone else now owns whatever items of value you have, up to their judgment amount.  A really mean judgment holder could have the sheriff show up at your house and sell all your belongings to cover the amount owed.  Your wages can be garnished.  Your bank accounts can be seized.  A "nice" judgement holder will allow you to make payments.  They are not required to accept payments, or to accept less than is owed.

I used to have a judgment and didn't worry about it, since I had no money and owned nothing of value.  I forgot about the judgment for a while.  Then one day the judgment holder pulled my credit report, and boy did I get scared!  I paid it off shortly after that.

I would not have the _____ to stick $40k in an account somewhere and hope the judgment holder would not find it.  I would not be able to sleep for worrying over that money being seized!

I hope the OP can fight this if there is any question of the legitimacy of this judgment, but if not I hope they accept this as a very hard, painful life lesson and learn from it. 

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To stuff the 40K into your mattress instead? lol