I have a bank account with Scotia Bank and a credit card with Scotialine Visa.
I'm going through rough times and can't pay back the credit card at the moment....
Can they freeze my bank account in ransom for the unpaid credit card or is that illegal?
2007-10-01 14:34:14 · 4 answers · asked by fantapattaya 2 in Business & Finance ➔ Credit
If you default on your credit card, they won't freeze your bank account. They will just take all the money in the account. Somewhere in the paperwork you signed when you opened the account, you agreed to allow them to do this.
2007-10-01 14:40:41 · answer #1 · answered by bdancer222 7 · 0⤊ 0⤋
(I worked for Scotiabank!) Yes, they CAN place a hold on your account for these funds if they feel it's necessary. This is legal for them to do because when you obtain a credit card from them (or any institution) you enter into an agreement to repay it in a timely fashion. You also authorize them to pull a credit bureau/pursue payment at any given time if you don't pay according to agreement. Usually they will call you and work out some sort of payment first, and if this payment is not made then they send to their collections department. From there they may place a blemish on your credit bureau for late payment, and pursue collection. I would call the visa centre (number's on the back of your card) and arrange a payment with them, even if it's not the full minimum payment. This way they'll be less likely to blemish your bureau, and it shows good faith on your part for calling them before it's marked late...
Hope this helps!
2007-10-02 01:49:15 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The bank won't freeze your account, but the credit card company can.
2007-10-02 07:39:55 · answer #3 · answered by Classy Granny 7 · 0⤊ 0⤋
Depends if they get a court judgement / lien
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2007-10-01 21:38:53 · answer #4 · answered by kate 7 · 0⤊ 0⤋