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  1. #1
    Join Date
    May 2017
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    Default Debt Collectors and Secured Credit Cards

    My question involves collection proceedings in the State of: CA
    i am wondering if a debt collector can seize my secured visa or would the issuing bank. or does that bank have a higher security intrest over the depeosit

  2. #2
    Join Date
    Oct 2014
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    8,238

    Default Re: Debt Collectors and Secured Cards

    The debt collector would first have to get a court judgment against you. Once it has the court judgment, it could levy upon the funds you deposited with the credit card lender to secure the charges you make on the card. In general the credit card lender would have priority to apply the money to charges you made before the levy was served.

  3. #3
    Join Date
    May 2017
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    5

    Default Re: Debt Collectors and Secured Cards

    Quote Quoting Taxing Matters
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    The debt collector would first have to get a court judgment against you. Once it has the court judgment, it could levy upon the funds you deposited with the credit card lender to secure the charges you make on the card. In general the credit card lender would have priority to apply the money to charges you made before the levy was served.
    yea but can't the bank object to the attachment on a debitors acct on the grounds that the bank already had a security intrest in the acct because of letter of credit that would be sent out???

  4. #4
    Join Date
    Oct 2014
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    8,238

    Default Re: Debt Collectors and Secured Cards

    Quote Quoting krynn
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    yea but can't the bank object to the attachment on a debitors acct on the grounds that the bank already had a security intrest in the acct because of letter of credit that would be sent out???
    The credit card issuer could claim a secured interest in the debts you already ran up on the card. I've never seen a secured credit card that guaranteed to extend the credit for any set period of time; rather, all those I've seen say the card issuer may cancel the card at any time. In that case the credit card lender cannot claim that the full amount of the security deposit is at risk. The credit card company may just cancel the card if the unused security is taken by the judgement creditor and suffer no harm.

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