Are credit card companies allowed to place a hold on checking accounts?

Answer 1

Discover card emptied my brother's checking or savings account, don't know which

Answer 2

A debit card gives you access to your own money. It works like a check because it draws upon your checking account balance. You have to have money in the account in order to pay for something with a debit card. For example, you want to use your debit card to buy an iPod flea for $199 Guess what? You must have at least $199 in your checking account to cover the purchase. The $199 is electronically deducted from your checking account. While the actual deduction may take place hours later or even the next day, the card places a "hold" on the $199 right away, reserving your money for that transaction.

A credit card gives you access to a lender's funds. That means a credit card transaction is a type of loan. Every time you pay for something with your credit card, you are in fact borrowing that amount of money from the credit card company. The bill arrives later asking for payment—plus interest if you carry an unpaid balance from one month to the next. If You Carry an Unpaid balance. When the credit card bill arrives, it will tell you the balance due, and it will also give you a minimum required payment of say, $15. If you pay only $15 instead of the entire balance you still have to pay that balance eventually. In addition, you have to pay interest on the balance that is carried over to the next bill (usually a month later). For example, if you buy the iPod using your credit card, you're promising to reimburse the credit card company later for the use of the $199.

Answer 3

Without a judgement against you it could only be done if it is a secured credit card, secured by the funds in the checking account

Answer 4

The court is allowed to do so at the behest of a creditor you've not paid. They could do this during or after a judgement against you.

Answer 5

if they obtain a judgement against you, yes. Also check your contract, you may have signed permission that allowed them to do that in the event you defaulted.

Answer 6

If they win a judgement against you in court.

Answer 7

What do you mean? Question is a little vague.