WHERE NOT TO KEEP A CHECKING ACCOUNT
If you are falling behind on your credit card payments, don’t keep a checking account with the same bank you owe money to. Reason: the bank could take money directly from your checking account to cover the payments to your credit card.
Example: if you are two payments behind to your Greedy National credit card, and you have $1,000 in your Greedy National checking account, you might wake up one morning to find that the $1,000 is gone – taken to pay the credit card. When you signed up for the credit card at Second National, there was probably something in the small print giving the bank the right to do this. We’ve seen this happen more than once.
Solution: if you are behind on payments to Greedy National, open a new checking account at a totally unrelated bank.
For a free consultation regarding your rights and options, call (213) 509-1515