Welcome

HappyG

I have a credit card with a credit union. I also have a savings, auto loan, and checking account with the same company. I recently went over my credit card limit by 1000.00. I used a convenience check to pay off something, and forgot about it, so I used the actual credit card later, not remembering that I had written a check. Can they take the overage amount from my checking and savings account? I know this is probably in the paperwork that I received when I got the credit card. Since it is the same company I figured they could probably take the money from my checking account. Of course it was my error and nobody else's. I want to pay it, but can't pay it all right now. Could they possibly increase my limit to that amount? I stopped my direct deposit because of this. Again, not because I don't want to pay it, but I don't want them to take it all right now to take the balance under the credit limit. Yes I do realize the seriousness of this and how it will affect my credit, believe me I do. I have worked hard to get my credit in good standing, and unfortunately, this was an oversight on my part. Thanks in advance for any advice or help in what to do.

Derek0191

Yes they can.

dragonfireresurrected

not unless the account was linked from the begining, but otherwise no, since a CC by default is unsecured line of credit, so you went 1k over you best of paying it ASAP, as you credit will be damaged for 7 years, and no they will not give you an increase, especially if you do not pay it back immediatelybut many banks are starting to do automatic linking of checking, savings and CC with out your permission, even though under FTC rules it's illegal.Linked accountsAlso referred to as "Overdraft Transfer Protection", a checking account can be linked to another account, such as a savings account, credit card, or line of credit. Once the link is established, when an item is presented to the checking account that would result in an overdraft, funds are transferred from the linked account to cover the overdraft. A nominal fee is usually charged for each overdraft transfer, and if the linked account is a credit card or other line of credit, the consumer may be required to pay interest under the terms of that account.The main difference between linked accounts and an overdraft line of credit is that an overdraft line of credit is typically only usable for overdraft protection. Separate accounts that are linked for overdraft protection are independent accounts in their own right.Bounce protection plansA more recent product being offered by some banks is called "bounce protection."Smaller banks offer plans administered by third party companies which help the banks gain additional fee income.[7] Larger banks tend not to offer bounce protection plans, but instead process overdrafts as disclosed in their account terms and conditions.In either case, the bank may choose to cover overdrawn items at their discretion and charge an overdraft fee, the amount of which may or may not be disclosed. As opposed to traditional ad-hoc coverage, this decision to pay or not pay overdrawn items is automated and based on objective criteria such as the customer's average balance, the overdraft history of the account, the number of accounts the customer holds with the bank, and the length of time those accounts have been open.[8] However, the bank does not promise to pay the overdraft even if the automated criteria are met.Bounce protection plans have some superficial similarities to overdraft lines of credit and ad-hoc coverage of overdrafts, but tend to operate under different rules. Like an overdraft line of credit, the balance of the bounce protection plan may be viewable as part of the customer's available balance, yet the bank reserves the right to refuse payment of an overdrawn item, as with traditional ad-hoc coverage. Banks typically charge a one-time fee for each overdraft paid. A bank may also charge a recurring daily fee for each day during which the account has a negative balance.Critics argue that because funds are advanced to a consumer and repayment is expected, that bounce protection is a type of loan.[9] Because banks are not contractually obligated to cover the overdrafts, "bounce protection" is not regulated by the Truth in Lending Act, which prohibits certain deceptive advertisements and requires disclosure of the terms of loans. Historically, bounce protection could be added to a consumer's account without his or her permission or knowledge.In May 2005, Regulation DD of the Truth in Savings Act was amended to require that banks offering "bounce protection" plans provide certain disclosures to their customers. These amendments include requirements to disclose the types of transaction that may cause bounce protection to be triggered, the fees associated with bounce protection, separate statement categories to enumerate the number of fees charged, and restrictions on the marketing of bounce protection programs to deter misleading advertisements. These disclosures are already provided by larger banks which process overdrafts according to their terms and conditions.