shawanba
New Poster
Cash: $ 0.45
Posts: 2
Joined: 02 Feb 2009
Location: Florida
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I am 70 years old with a fixed income. My spouse, who passed away two years ago, left me with a heavy financial burden.
At this point of my life, I am seriously considering not paying my credit cards or just sending them $20 a month. If I do cease to pay or just pay a little, I am concerned about the bank automatically taking funds. Two of my credit cards are with Bank of America, where I have my personal account. Will the BOA creditors go into my account and withdraw funds without my permission?
Also, I have paid the non-BOA credit cards online with echecks. Will these creditors go into my account and withdraw funds without my permission?
I cannot file Bankruptcy due to fear of losing my rental properties.
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Mon Feb 02, 2009 10:27 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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Banks cannot take funds out of your account with either (1) your permission or (2) a court judgement to settle damages or (3) according to the terms of the account agreement. #1 and #2 you don't have to worry about; #3 is something you should check into. Read the account agreement yourself; don't trust the bank to give you the short version.
Nobody else can withdraw funds from your account except for any of the above reasons as well. That being said, due to weaknesses in the electronic banking system, it is possible for fraudulent activity to take place. It would be possible for anyone knowing your bank account number and bank routing number to withdraw funds from your account. It's not legal to do so, but it is possible. You MUST report any unauthorized activity in your account within 30 days, or else you're liable for it. If you report it in time, the bank is supposed to make you whole. If you don't, then you're out of luck.
If you continue paying the minimum payment on each account you have nothing to worry about, except that your debt might continue growing. (And the minimum payments go up.)
If I were you, I'd switch all my accounts to a smaller bank. Either a sound local or regional bank, or a credit union. BOA doesn't give a rip about the individual.
~Tim~
Eye Candy : Why Whimsy
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Tue Feb 03, 2009 5:10 am |
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shawanba
New Poster
Cash: $ 0.45
Posts: 2
Joined: 02 Feb 2009
Location: Florida
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Thanks for the response Tim. I will read the account agreement for sure.
What if I make a small payment each month, below the minimum . . . to let the companies know that I am not skipping out, just short on cash. What will happen?
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Tue Feb 03, 2009 11:51 pm |
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coaster
Senior Advisor
Cash: $ 1318.80
Posts: 6496
Joined: 11 Oct 2005
Location: Wisconsin
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You'll get slapped with penalties, your interest rate will get jacked up to the roof, your credit limit will get whacked, and your credit score will fall over the cliff. Don't even think about it. I used up all my picturesque analogies trying to dissuade you. They don't look at intention, they only look at the letters and the numbers. If you don't meet the minimum payment, then you're in arrears.
Another idea is to consolidate your credit card accounts on one card that offers a teaser period of low interest and low minimum payments. If you can find such an offer, that is. Of course, they send them in the mail by the ton to people who don't need them.
~Tim~
Eye Candy : Why Whimsy
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Wed Feb 04, 2009 6:41 am |
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