PENFED Credit Card - THIS WILL NEVER HAPPEN

Anon456 | Oct 6, 2017 | 249 posts since 2011

Just got in changes in the Cardholder Agreement that changes language in Security Interest in Shares (see #12).

I love PENFED, and like the card, but when I realized I was required to pledge my cash on deposit at PENFED to help make PENFED "VISA" whole in certain cases of default, it raised hairs on the back of my neck.

There are probably 12 reasons this will never happen to me, but still, I resent them tying my funds on deposit to my credit card. Biggest fear is that fraud might happen, and then funds ceased, and then of course I can try to straighten it all out after the fact.

None of my other credit cards can touch my funds at PENFED, so why must this card attempt to do so?? No way to opt out. It is MY WAY OR THE HIGHWAY.

So I have cancelled my card and will look for a replacement.

It's just fine print, THAT WILL NEVER HAPPEN, but the only way to object is to avoid the card.

Nice try by their attorney to protect PENFED VISA, but it cost them a customer. Of course, they will never miss me.

I just thought I would let others who may have the CARD to realize they are pledging PENFED deposits (in limited cases) by holding the card.

8

Ally6770 | Oct 6, 2017 | 4,307 posts since 2010

I do not know if you realize it or not but they would only use your funds if YOU do not pay on YOUR account. This would only happen as a last resort after notifying you that your payment was late and trying to make a schedule with you to pay on your delinquent account.

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Anon456 | Oct 6, 2017 | 249 posts since 2011

YES, and of course, THAT WILL NEVER HAPPEN. ( unless you factor in Murphy's Law and potential of FRAUD ..... and I know they will safeguard me if FRAUD happens ..... after the fact, maybe). You are correct, but does not change the fact that none of my other cards can touch my funds, so, in my opinion, this language is out of place. I want the PENFED card to have the same rights as any other card I own, which also means NO - - no permission to earmark my funds at PENFED.

All of the arguments on why this will never happen are valid. But if it will never happen, why do you think some attorney suggested inserting that language.

IT WILL NEVER HAPPEN, but as it says, it is ONLY to protect PENFED VISA, and I find it offensive to tie my bank account, and the card, together - that no other credit card is doing.

Less than a 1% chance of it impacting me. I just do not like the attempt to do something where I cannot opt out of the potential (yes, .... very very small) liability.

I know I am being overly stubborn here, but they should have been just fine without it and operating like any other credit card.

4

Ricochet | Oct 6, 2017 | 522 posts since 2010

"I want the ****** card to have the same rights as any other card I own, which also means NO - - no permission to earmark my funds"

Are your other cards associated with a place that you have funds on deposit?

? wondering ?

1

Anon456 | Oct 7, 2017 | 249 posts since 2011

NO ... and that is the point. ONLY PENFED. And PENFED would not be a problem if I only had small amount of funds there. So either the CARD or the FUNDS needs to GO with this provision.

1

Bozo | Oct 6, 2017 | 1,375 posts since 2011

Anon456, it's your call. That said, I think you might be over-reacting. Look at it from the creditor's side.

"You have a debt, and you're not paying.
And a deposit, I'm just saying.
Would it seem, too much to dream,
PenFed might just howl and scream?"

Burma Shave

5

Ally6770 | Oct 6, 2017 | 4,307 posts since 2010

Check your disclosures. I retired in 2008 and the bank I worked at could but did not that I am aware of use your savings, checking, CD's etc if you had a balance, even with a death.

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