Subject to Levy

[JDIAC]

My question involves collection proceedings in the State of: TN

Hello all. Just wondering, would a secure credit card account with one's bank be subject to a levy? The bank treats it as a "savings" at least with my online activity. I did ask the bank employees but they did not seem confident in their answers.

Also yes, there are judgements with medical bills.

TIA!

[Taxing Matters]

My question involves collection proceedings in the State of: TN

Hello all. Just wondering, would a secure credit card account with one's bank be subject to a levy?

Assuming this is the typical kind of secured credit card arrangement then that savings account you established with the lender to secure your bank account is really no different than any other savings account and would be subject to levy/attachment by creditors same as any other savings account. All that is going on with a secured credit card is that the bank has the right of set off against the savings account to pay off your charges if you fail to pay the charges on time. Of course, I would expect that the card issuer would exercise its right of set off for pending charges if the account got levied, then send the creditor that levied the account the balance left after that. Then, since the money you put in the account to secure the credit card is gone, the issuer would close the card account.

[pg1067]

would a secure credit card account with one's bank be subject to a levy?

Only assets can be subject to levy. A credit card account is not an asset. That said, what makes this credit card account a "secure" account?

The bank treats it as a "savings" at least with my online activity.

Can you explain what this means?

[PayrolGuy]

Only assets can be subject to levy. A credit card account is not an asset. That said, what makes this credit card account a "secure" account?




Can you explain what this means?

You open a "savings account" in the bank and deposit $X. The bank then issues you with a credit card with a ~$X credit limit. You can't access the funds in the savings account but the bank can take it if you don't pay your bill.