Banks - long do they have to take your money

[hangingin]

How many years does the bank have to do this? Last payment send to Visa was in 2002, bank wrote debt off in 2003. Took money out of my account in 2010. Can they take money after 8 years? Thought this would be stats barred. Does the debt following you around with the bank forever?

[mutuussentire]

Until you die.

[ashedfc]

Its basic Financial management - NEVER KEEP YOUR ASSETS WHERE YOUR LIABILITIES ARE.
If you have any kind of debt (New or Old does'nt matter), always do banking from another institution. All the banks are same when it comes to normal regular banking. However, if a bank where you have any outstanding of kind whatsoever - discover an asset where they can reduce or eliminate their debt, they will do it (& you can't stop them). So why take the risk, Just do banking from another bank, & any investments - do with a non-bank financial institution like a mutual fund, or insurance company.

[Woofy]

Its basic Financial management - NEVER KEEP YOUR ASSETS WHERE YOUR LIABILITIES ARE.
If you have any kind of debt (New or Old does'nt matter), always do banking from another institution. All the banks are same when it comes to normal regular banking. However, if a bank where you have any outstanding of kind whatsoever - discover an asset where they can reduce or eliminate their debt, they will do it (& you can't stop them). So why take the risk, Just do banking from another bank, & any investments - do with a non-bank financial institution like a mutual fund, or insurance company.

Again, I really think this is dependent on each client's and individual's circumstances.

I have all my assets, and some of my liabilities (a personal line of credit, and my rental house mortgage) at the bank where I work, because it made more sense for me to go with them, since they offered a lot lower interest rates for me for my liabilities and better incentives for my assets.

I always do my analysis before I sign up for anything. And I go with whichever institution that will give me the best end result.

I give my business to whoever fights for it, and can give me the best end result.

[ashedfc]

I think you are missing out on the Risk management side. What if the worst happens - Just crash test yourself to find put where you stand. Every situation is different (so I cannot make a individual comment). Think of extremes when planning for future -
1. Job loss - & difficulty in getting the next job.
2. Severe illness - causing stress & probably job loss.
3. Severe accident causing inability to work & earn reasonable income.
4. Family issues - separation, death, divorce, etc.
5. Urgent need of cash - for whatever reason.
These are just thoughts, & they have devastated many families. You can only prepare for it.
Plan for the Worse & Hope for the Best

[Woofy]

I think you are missing out on the Risk management side. What if the worst happens - Just crash test yourself to find put where you stand. Every situation is different (so I cannot make a individual comment). Think of extremes when planning for future -
1. Job loss - & difficulty in getting the next job.
2. Severe illness - causing stress & probably job loss.
3. Severe accident causing inability to work & earn reasonable income.
4. Family issues - separation, death, divorce, etc.
5. Urgent need of cash - for whatever reason.
These are just thoughts, & they have devastated many families. You can only prepare for it.
Plan for the Worse & Hope for the Best

I can see your point re risk management, and I believe absolutely in planning to cover and prepare for crisises.

I actually find it presumptuous that you think I am missing out on the risk management just by a post.

In my opinion, I truly believe that the financial industry tends to overhype the worst scenarios. And yes, I work in the financial industry.

I always keep in mind that as much as we would like for the financial industry to educate us about our financial lives and how to structure our finances, there is always a conflict of interest on their part. They are after all for-profit organizations. I never forget that.

I always listen to what the financial experts have to say, but I have a mind of my own, so I do my own thinking through, research, discussion, and I make my own decisions.

[Woofy]

Oh yes... one more thing that my dad never fails to remind me...

Financial institutions and banks are fair weather friends... They always only lend you an umbrella when you don't need it...

When the thunderstorms come and the rain pours, watch them take away the umbrella!

Of course, I know it's just a generalization... but I always find it amusing.

[ashedfc]

You are absolutely correct.
That is exactly, Why, One should use the Umbrella to the maximum & prepare an alternative asset class (completely non-accessible from the bank which provided the umbrella). So, When it rains & the umbrella is gone - one should not live on credit card or payday loan, or borrowing from friends & relatives.

[travelgeek]

Also, let's say you're disputing a fraudulent charge on your credit card that you didn't make, and the bank rules against you (a likely scenario with the new liability rules on Chip & PIN). You are now liable for the amount, and since it is a debt, they can sell your investments without your authorization to cover it.

If other financial institutions are willing to grant you credit without having your assets there, I see no reason to take on the risk.

[nadiabreckon]

Oh yes... one more thing that my dad never fails to remind me...

Financial institutions and banks are fair weather friends... They always only lend you an umbrella when you don't need it...

When the thunderstorms come and the rain pours, watch them take away the umbrella!

Of course, I know it's just a generalization... but I always find it amusing.

I agree with you 100% with this post! And I love your dad' quote, it's something my dad would say too...since he's great with anything having to do with money, investing, savings, you name it!

[elliott_gyal]

That really sucks, im sorry to hear that. I would have thought they would have let it go... shows how much i know~!

[ashedfc]

That really sucks, im sorry to hear that. I would have thought they would have let it go... shows how much i know~!

Banks, Non-Bank Financial Institutions, Mutual Fund companies, Insurance companies, are all in the business of making money either for share holders or members. Most of them have only one goal - increase profitability.
They do write-off bad debts, BUT, not completely (its always somewhere on file unless you declare bankruptcy & do financial cleansing).

[Litesandsirens911]

my sil is a government debt collector...i was told it is only 7 years.Maybe it is different in every province?

[screamy]

do financial cleansing

This made me think of yoga and eating lots of bran.


(I know that's not what you meant...although I've never heard it called "cleansing" before.)

[ashedfc]

This made me think of yoga and eating lots of bran.


(I know that's not what you meant...although I've never heard it called "cleansing" before.)

I know, its not called "Cleansing". But Bankruptcy the means more or less the same. Its a process where the debts are written off either completely or partially, or redesigned into an affordable & workable solution.