Popular Myths About Bank Levies

When you are trying to deal with a financial situation that involves overdue payments, then you may be coming across popular myths about bank levies. In order to understand these more clearly, then you should know where to find the most current information. This may be a topic you want to research in general or specifically to do with your account. Either way, there are plenty of resources to choose from. For those who are students of the topic in general, try looking through specific credit card sites that will explain how they deal with overdue payments and what that can mean for linked bank accounts. Most of the time, when you fill out a credit card application; you also need to let them know where you have an account and approximately how much is in it at the time.

Account Status and Levy Placement

If the time ever comes when they need to file a levy, this will not completely shut down your account forever so you should still be able to pay any due bills. What it does is allow them to freeze any funds available in the account for 21 days while they can work this dispute out with your financial institution. Depending on how much your outstanding bill is and how many dollars you actually had in the account, you may not be able to recover any of these funds. However, if your current balance is over this amount, then you should be able to access it after the 21-day period. The 21 days gives both the bank and the creditor time to work out the details so they can receive the transfer of funds and everything is verified properly. It also gives you a chance to dispute the matter if you feel this is an unjust action. Make sure you file the right documentation so the bank or credit union can review everything together.

This is also not a procedure that can be done at will at any time. The credit card companies are required to let you know beforehand that they are going to file this paperwork if the correct payment is not received on time. If you neglect to pay attention to these notifications, then they have every legal right to pursue this course of action. It is an item you agreed to when you signed the credit card agreement and the terms can usually be found in your copy of that paperwork. To find out how your credit card company may deal with this situation in the future if you see that as a potential problem, read through the documents ahead of time to see how you can avoid this from happening.

Reasons to Avoid Levies

While doing some research on your own to learn the popular myths about bank levies is always a good idea, you can also go directly to the source. This is where talking to your credit card company and letting them know your situation can be beneficial. If they know you're in financial trouble, they may be able to set up a payment system with you that won't be a negative factor on your credit score and will help you maintain your current level of credit with them. There may be times when they reduce your limit for a period of time, but you should be able to get that back after following through with whatever repayment terms you have agreed to. Most of the time, this is better for them as well because they know for a fact you are going to pay back what you borrowed.