Bank Closed CC I was paying on because we have a mortgage with them

[merime]

I have had a Bank of America credit card for 6yrs. Never a late payment ever. I would pay, get a $200 limit, use $100 of credit and pay. Stupid, but I thought at least I was getting something for being prompt in payment,(As in each time I paid minimum $225 at least I got got a $200 to spend). Afew weeks back I tried to negotiate with them a lower payment. Today I recieved a letter from them saying account is closed. My question , our home loan is with them. It is where I cash my paychecks. HELP!!! I cant afford to pay and not be able to use just a little. If I stop paying, could they take my money , house and stop cashing my checks? Any help would be so appreciated.

[Quagmire]

Hello Merime,

I am in a similar situation. I have 4 consumer credit cards with B of A, 1 business credit card with them, a mortgage with them, and one checking account with them. Since I am past due on all 5 credit cards, I stopped using them as soon as I missed the first payment on each one. I am sure that by now, all of my 5 credit cards are over the limit (due to the late charges, that pushed them over the limit for the past 3+ months). So I am sure that they have closed or suspended all of those accounts by now. However I do put in $20 once a month into my checking account to cover my monthly checking account service fee of $20, since I have a safe deposit box at their bank, so I do not want to get overdrawn on my checking account. However I only keep $6 in the checking account. Yet I usually get a call once a week from their collection department about my past due accounts . . . as near as I can figure, they have grouped all 5 past due accounts into one collection . . . so I am glad that they are not calling separately about each account.

Yet I have two other checking accounts (at two other banks) that I use, so I am in good standing with both banks (for now). Yet when I knew that I was getting into financial trouble earlier this year, I had read a lot of postings about pulling my money out any checking and or savings account that I have that creditors may freeze (if I am doing business directly with them by having their credit card and a bank account with them). So for now, until I get into legal trouble with my creditors, I think my 2 other accounts are safe. It is too bad that you do not have another checking account with another bank that you could use to cash your paychecks. However I know that banks make a habit of pulling your credit report whenever you open up a new checking or savings account. So I am not sure what will happen if you try to get a new account where you can cash your paychecks.

In your case, the only option I can see for you right now is (since you need a little extra money), go to one of those check cashing establishments and cash your pay check there. Then if you opt to stop paying on your B of A credit cards, at least you will have that extra money you need (minus the small percentage that the check cashing place will charge you for cashing your check). Yet I have often seen in these forums,"if” you plan of going BK, just stop paying on your credit cards and save that monthly payment money for your BK lawyer, since there is no sense on paying on a credit card that you can no longer use. Yet if you think that you will not go BK, I would try to keep up on the monthly payments on the credit card, so that it does not damage your credit report too much . . . as I am sure a closed account on your credit report will not hurt you any where near as much as having a BK on your report.

Good luck to you, and hopefully someone will come along and provide you with a good answer to your question.

Quagmire

[justbroke]

merime, your relationship with a bank is just that, a relationship. If any part of that relationship is suffering, the others too shall suffer. National Banks, and even local and regional banks, have all sorts of "small text" in the account agreements indicating that they can "offset" one account for another. Additionally, a bank is not obligated to extend credit and can cut it off at any time.

Having wrote that, yes... they can take money out of your "demand deposit accounts" (DDA) -- such as checking or savings -- and possibly even time deposit accounts like CDs, if you don't pay your closed (or open) credit accounts with them. It's time to start shopping for a new bank if you can't keep up your obligations with the bank.

Additionally, I want to say this. From a budgetary standpoint, if you're using the "float" on a credit card, by paying it each month and then re-using what you paid... then you are headed down the slippery slope. This is exactly what will get you in trouble and many banks can discern that is what you are doing. It's dangerous to use credit as a crutch to get you through the month. I hope this is not the case for you, but I mention it for others here.

[tobee43]

I have had a Bank of America credit card for 6yrs. Never a late payment ever. I would pay, get a $200 limit, use $100 of credit and pay. Stupid, but I thought at least I was getting something for being prompt in payment,(As in each time I paid minimum $225 at least I got got a $200 to spend). Afew weeks back I tried to negotiate with them a lower payment. Today I recieved a letter from them saying account is closed. My question , our home loan is with them. It is where I cash my paychecks. HELP!!! I cant afford to pay and not be able to use just a little. If I stop paying, could they take my money , house and stop cashing my checks? Any help would be so appreciated.

i hate to be blunt...but i stress this over and over...never eat where you go to bathroom...

b of a is one of the worse...ever...i have to laugh..we had a 50k line with them....pd 48k off in two months...called them because the available credit...which had been at 5% for at least 7 years...was at the top of the line..50k. we needed 20k to pay down for a doctor for surgery. i call b o a and tell them not to get alarmed we will be charging to a doctor 20k...no problem the lady says...

by the time we got to the doctors the credit card was run through...and declined. i called and after speaking with that nice lady not only did she CUT the line but closed it...knowing i needed it for medical expenses to help SAVE my life.

i pleaded but we just pd you 48k last month...(that 48k was also used for medical reasons). and b o a said, yeah...thanks for that payment but you're cut off and understand we just don't care...just go under a rock and die for all be care...we had been with BOA for over 30 years in one way or another.

we had 3 other accounts with them at the time from 5-7% fixed rates...that same day BOA upped them all to 39.9%...by the way we had never been late on a bill in 40 years. they could care less.

get your MONEY OUT OF BOA....pick a small community bank and begin to cash your pay checks there....where there are humans working.

do NOT hesitate one second...open another account at a different bank asap....

[merime]

My problem is I am scared about the mortgage. My husband took my name off all the saving accounts, but the mortgage with BoA is still in our names. I finally have an appointment copnsultation with a bankrupcy lawyer this Wed. I pray to be able to put an end to all of this pain and stress. My husband ,even if he is a jerk, has nothing to do with my debt. I do not want to put the home in jeapordy. I have been able to work a few extra hours, but $410 every 2 weeks is just not enough. Its so hard. My job is so stressful too. I take care of 5 infants at a nursery all on my own for $9.00 hr. It is really getting to me. Thanks for the advice. I agree about relying on credit. That is why I was stupid and opened my mouth to see if I could get hardship help from BoA. I mean wouldnt they want to get something rather than a default. Yes, I will look for another bank, but worry about the mortgage and the saving accounts only in my husbands name.

[tobee43]

My problem is I am scared about the mortgage. My husband took my name off all the saving accounts, but the mortgage with BoA is still in our names. I finally have an appointment copnsultation with a bankrupcy lawyer this Wed. I pray to be able to put an end to all of this pain and stress. My husband ,even if he is a jerk, has nothing to do with my debt. I do not want to put the home in jeapordy. I have been able to work a few extra hours, but $410 every 2 weeks is just not enough. Its so hard. My job is so stressful too. I take care of 5 infants at a nursery all on my own for $9.00 hr. It is really getting to me. Thanks for the advice. I agree about relying on credit. That is why I was stupid and opened my mouth to see if I could get hardship help from BoA. I mean wouldnt they want to get something rather than a default. Yes, I will look for another bank, but worry about the mortgage and the saving accounts only in my husbands name.

i have known people to file seperately and have a house mortgage in both their names.

after you meet with the atty...he or she will let you know what your exact position is and what steps to take to move forward.

best of luck and keep in touch after you find out... !

[ryan]

get your MONEY OUT OF BOA....pick a small community bank and begin to cash your pay checks there....where there are humans working.
do NOT hesitate one second...open another account at a different bank asap....

Could not agree more....BofA is one of the most unreliable, misrepresenting banks I've ever dealt with.

I closed every acct with them almost a year ago and I'm glad.

[tobee43]

Could not agree more....BofA is one of the most unreliable, misrepresenting banks I've ever dealt with.

I closed every acct with them almost a year ago and I'm glad.

actually, even when things get better i would never consider doing business again with them...and will continue to encourage as many as i can to stay away.

ironically, when i was a little, boa is where i had my very first $5 saving account...used them all though college etc. so to be with someone that long....(and by the way we had never ever even been close to late on any payment or any kind!). boa just treated us like wild animals.

[merime]

Thanks everyone!!