Small Business Loans With Bad Credit

Linda asks…

Can banks take money from your acct for an old charged off bad debt student loan without permission/notice?

I was a co-signer for my son when he was in college (4 yrs ago). When the loan was due, he could not pay it. They called (collection people) him daily. They offered to accept half and he said great, buthe would have to send payments. They said they could not take payments. Finally the loan was CHARGED OFF (at least that’s what my credit report said. Now to present day. My husband was laid off and he cashed in his IRAs in order to try to start a small business and to survive. Out of the blue, we get hit with a $4500 withdrawal that Chase helped themselves to in order to pay off that debt. While it was a loan, I did not know they could simply help themselves to my account. Is this legal?

admin answers:

Yes and no.
YES they can take ANY funds in your name in their possession to pay any debts you owe them without notice.
No, this is NOT taking money without permission. The terms you agreed to, but probably never read, when you opened the account SPECIFICALLY granted permission.

Note: Charged of is an ACCOUNTING term that means the account in no longer listed as a collectable asset on their balance sheet. If has ABSOLUTELY no legal significance.

Also Note: This may have been a loan used to pay for school, but it was NOT a student loan. If it had been a student loan, the US Government would have paid Chase and the IRS would have become the collection agency.

Edit: In response to MVD34: There is no need to read the loan agreement. The terms of EVERY loan, checking account, savings account, brokerage account, and every other account with ANY financial institution in the last several decades have included the ‘right of offset’ that Chase exercised in this case. If MS Word can in a ‘Attorney’s Edition”, a new blank document would be at least 2 pages long, and this clause would be included.

Ken asks…

I want to stay at home and work, help?!?

So basically I just had a son, and would like to work from home. I have the idea, I want to help schools and organizations raise money. However, I need some help with the startup costs. With my bad credit I know I cannot get a loan. Does anyone know of any other ideas for small business funding, I am desperate.

admin answers:

I don’t know where you live, but where I live, we have a community college that sponsors a special class that helps people like yourself get started in starting a small business, etc. Maybe you can look into colleges in your area to see if they have the same kind of thing there. Hope you get the help that you need and that you get to do this for you and your son…

Richard asks…

My banks keep messing up my loans/terms, any advice?

I had a few loans out through my significant other, one small one that i used for a car about $6,000, one larger one for about $28,500, and then we had some combined stuff to do around the house, etc, so that was a home equity for about $30,000…all in all those were gotten about a year or two fairly closely together though, and they all started out as lines of credit, fixed interest rates.

We both kept making payments on time, and were on great terms, then this whole credit crisis hit…our credit cards, some of them, the limits got slashed, one or two just closed…..then two of these lines of credit became variable rates…and then if that wasn’t enough, they reduced the terms from lets say 6 and 8 years down to 5, just like that…

and just today I found out that they’re freezing them, the two of them, and they’re no longer lines of credit just simply loans..which totally eradicates drawing more on it lets say at a later date.

So now I especially am very angry, because I feel like we’re being messed around by these banks just because they “can,” even though we have good if not great credit, make our payments on time, and that’s actually not THAT bad of outstanding debt being that it’s not all under one person’s name.

it’s just ridiculous though. We’ve been paying them down, and we still have alot of other credit available that we NEVER use, and income is good..everything is good.

So now I’m depressed, becuase in the last year, with all this slashing, it put a serious dent into being able to withdraw espeially for necessary things like health bills.

So as of right now I want to know what the best option would be?

Should I just let things go how they are, or should I try a different bank and then just consolidate a few into one bigger loan, or try to get a line of credit and just transfer over and pay off the, forgive my language, cr@ppy loan deals we now have?

Another concern is, with this outstanding debt, which isn’t astronomical but it’s still quite a bit…

will they be less likely to approve, especially if it’s secured? Does going in person help any..rather than just over the phone and internet, and perhaps putting up a collateral or securing it with something might help?

The thing is, I used personal lines of credit to have as a safety net, just in case emergencies come up, I mess up and over spend,, or whatever financial crisis may arise especially in THIS economy, and it’s something that you pay down but can also reach in if you need it.

IT’s great for rescues, but now banks are seriously cutting that down, and well….not much is available.

So I’m very upset over it. I mean I can understand the economy being bad but…these banks aren’t even giving out notices ahead of time to WARN us about changes@!

They NEVER notified us about this recent change where they’re just becoming loans and not lines of credit which we got APPROVED of.

no letter in the mail, just happened.

This is all by the way, BANK OF AMERICA!

the other one is with capital one, and they’re fine thus far.

is bank of america just a bad place to do business with?

They even treat their LOYAL customers like dirt and we’ve been banking with them for a long time now!

Very depressing I’ll say.

What are our options? I don’t want to go into some debt consolidation thing either because I can totally pay off the bills from the loans etc, tey’re not that much considering they’re spread out for many years, and they serve a great purpose to withdraw money from if they’re lines of credit.
also, once the banks do this, are these permanent changes or can they be subject to change? Bank of America’s reasoning was : well we just don’t DO lines of credit anymore.

Fine, but why should we then bank with them?

It’s our money too we’re paying back, so why pay under one bank’s conditions & terms you don’t agree with.

If another bank is more negotiable and nice to their customers & offers better rates/plans…..then…why stick with bank of america?

They seem very blase about actually working with you. IT’s more like…this is what we offer, this is not, take it or leave it GOODBYE, no care about good customer service or a good payment history NOTHING.

I feel like a number and they treat you almost condescendingly.

Well why do banks offer these services…if they later complain that people shouldn’t be USING THEM? It’s a catch 22, if no one used them…their businesses wouldn’t be as successful.

Banks, what’s the deal!?

admin answers:

You’ll probably find your answer on using the search or just reading the articles. Here I tried to to search the answer for you, not really sure:

Powered by Yahoo! Answers

Comments are closed.