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PLOC that can be used as a full checking account

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Anonymous
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PLOC that can be used as a full checking account

 

Trying to take a survey -- which banks have a PLOC that can be used as a checking account? 

 

Here is what I mean: You can direct deposit salary into it (and send it to a credit balance), make online bill payments from it, ACH transfers into and out of it, and you can write regular checks from it, as well as access it through an ATM for both deposit and withdrawl. In other words exactly like a checking account, except that if the balance goes negative you pay interest at your PLOC interest rate. 

 

I currently have one that is ALMOST this, but through a bank that is otherwise not great. I can direct deposit salary, write checks, and withdraw money, but things like billpay only work through a linked checking account -- I pay the bill from the checking account and transfer from the PLOC.

 

Can those who have a PLOC comment on what your bank allows you to do, and whether you can use your PLOC as a wholesale replacement for your checking account?

 

 

 

 

 

p.s. - yes I know you won't get interest on a credit balance in a PLOC, I transfer cash reserves to a savings account or to an investment account, would never leave excess cash in the PLOC.

Message 1 of 15
14 REPLIES 14
Anonymous
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Re: PLOC that can be used as a full checking account

Canadian-In-Seattle - I will be interested in this too. Cannot think of many banks that even let you put there credit products into an overpaid status. Just had my Citi Dividend Card overpaid by $452.20 and Citi was on that with a refund automatically.
Message 2 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

Interesting question. I've worked at four banks - National City, PNC, and two chicago community banks - and I haven't seen anything where this is possible. Most banks allow you to attach a line of credit to a checking for overdraft coverage but thats the closest I've seen. I'm curious to see what others have to say.

Message 3 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

RBC Bank PLOC is what I am using now. I have checks, direct deposit, ACH to/from it via links from other banks, and can autopay from it. There are a few things I can't do like bill pay, as mentioned, the UI forces me to transfer to a checking account.

It is not really a great bank overall, there is a small monthly fee that they never waive and their service levels are pretty minimal. I set it up because they are connected to my Canadian bank, but would like to move.

In Canada these types of checking lines of credit are common but seems they are uncommon here.


Message 4 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

 

Here is my experience with the RBC PLOC so far--I can basically use it as a checking account. I have checks for it. I have my payroll direct deposit into it. I have had it sit with a credit balance for extended periods of time, and they don't USUALLY care. 

 

One time I had a credit balance of over $2000 sitting in their PLOC and then I got a note from them saying they refended the overpayment, and I found they had transferred the balance to my associated checking account. Just once in a year they did that. 

 

I'm going to try it with a different institution. I have a PLOC now with a local CU, and I have a routing number for them and the account number. First I'm going to try and link it to other banks and ACH into and out of it. I have submitted the linking info, and waiting now for the micro payments to show up. If they don't show up, then that'll be the end of that experiment. If they DO show up, I will link the accounts, and then I will do an ACH transfer into the PLOC from a remote account. See if it takes a credit balance. If THAT works, then I will update my direct deposit to pay into the PLOC.

 

The reason why I want to do that -- I don't ever want the PLOC to get through the month without having been fully paid off on at least one day. And by having my entire salary pay into the PLOC, that will always be true. Even if subsequent outgoing credit card and bill payments drop it to negative again, it will have been paid in full. Every month. And so will my credit cards--they too will get paid in full every month. Every account I have will get paid in full every month. Even if it subsequently goes negative again, it will have a credit balance for at least some period of time.

 

This is my way of ensuring that no account anywhere ever misses a payment. It's easy enough to have the credit cards autopay from the PLOC. What's tougher is to make sure the PLOC itself never misses a payment too. Make it pay from a linked checking account and there's no guarantee it will go through--the checking account might be empty if my expences that month exceeded my income. Have my salary direct deposit into the PLOC itself and I'm assured everything gets paid.

Message 5 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

CIS,

 

I know who you're referring to and, unfortunately, you can't do what you want to do. When you make an external transfer in, the PLOC does not appear as an option. Only the checking and savings appear as options.

Message 6 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

"This is my way of ensuring that no account anywhere ever misses a payment. It's easy enough to have the credit cards autopay from the PLOC. What's tougher is to make sure the PLOC itself never misses a payment too. Make it pay from a linked checking account and there's no guarantee it will go through--the checking account might be empty if my expences that month exceeded my income. Have my salary direct deposit into the PLOC itself and I'm assured everything gets paid."

 

 

 

I don't understand how doing everything through a PLOC assures this any more than a regular checking account with a PLOC overdraft protection. If your expenses exceed your income in a given month, it doesn't matter whether you put it in checking or the PLOC. If anything, it's more risky, because as has been said, if you try to add too much credit to a PLOC, the issuer will sometimes kick it back via a refund. If you're just using checking with overdraft instead, your PLOC balance will always be zero and you don't even have to worry about it, it'll be paid in full all the time (except when your expenses exceed your income, like you said.) So just have everything autopay from your checking account, and then check your PLOC account every so often (at least once a month) and you're not gonna miss anything.

Message 7 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

What I mean is there is a monthly minimum payment due to the PLOC itself if there is a balance. There is no way to guarantee thise funds will be available in the checking account unless you intervene to arrange for that.

 

The goal is to ensure payments happen seamlessly and automatically without oversight.

 

If direct deposit goes into the PLOC instead of the checking account that takes care of paying off the PLOC minimum monthly payment, and then the PLOC pays the credit card autopay and other bills.

 

The poins  here isn't too run up a balance but to ensure all payments are made on time automatically regardless of circumstances. 

Message 8 of 15
Anonymous
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Re: PLOC that can be used as a full checking account


"I know who you're referring to and, unfortunately, you can't do what you want to do. When you make an external transfer in, the PLOC does not appear as an option. Only the checking and savings appear as options."

I know you can't initiate the transfer to the PLOC from BECU web software, but I have a routing number and account number for the PLOC. What will they do if I use that information to set up direct deposit of my payroll? Bounce the payment? Credit the PLOC?

First I am going to submit ACH from another institution, pushed from that bank rather than BECU. If that works I will send a part of my salary through direct deposit and see.
Message 9 of 15
Anonymous
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Re: PLOC that can be used as a full checking account

I successfully linked my RBC Bank account to my BECU PLOC by sending micropayments to the PLOC. They showed up as "external loan payment", and hit the account at a time when it has a small ($20) balance to pay. I will link a few more external accounts then pay the $20.

So ACH can definitely be used to send money to the PLOC. Next experiment will be to see if I can send in more money than is owed and go to a credit balance and see how that is handled.

Getting there.
Message 10 of 15
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