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#290993 - 12/20/04 08:19 PM HELOC Debit Card??
Suzie Offline
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Suzie
Joined: Apr 2002
Posts: 662
Far North
Can a 'debit card' be issued to access a HELOC? The card transaction will be solely an extension of credit as no deposit account is involved.

Seems to me the access device would be a credit card but I'm told this is not necessarily so. Thanks -
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Lending Compliance
#290994 - 12/20/04 08:33 PM Re: HELOC Debit Card??
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,371
Galveston, TX
If the card accesses a HELOC, it is a credit card. Some banks process their HELOCs by using a "shadow" deposit account to allow for easy access via checks. Issuing a "debit card" on the shadow deposit account does not make the card a debit card - it would still be a credit card.
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#290995 - 12/20/04 08:37 PM Re: HELOC Debit Card??
Suzie Offline
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Suzie
Joined: Apr 2002
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Far North
Thank you very much.
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#290996 - 12/20/04 09:43 PM Re: HELOC Debit Card??
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
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Bloomington, IN
To add to Randy's comments, disputes/errors would be handled under Reg. Z guidelines.
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#290997 - 12/20/04 10:12 PM Re: HELOC Debit Card??
OnTheEdge Offline
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Joined: Apr 2002
Posts: 1,677
SmallTown, USA
In TN, allowing access to HELOC's by credit card negates our right of offset. You might want to check your state laws for similar issues.
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#290998 - 12/20/04 10:14 PM Re: HELOC Debit Card??
Suzie Offline
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Suzie
Joined: Apr 2002
Posts: 662
Far North
Thanks so much for the advice.
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#290999 - 12/20/04 10:23 PM Re: HELOC Debit Card??
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
Quote:

In TN, allowing access to HELOC's by credit card negates our right of offset. You might want to check your state laws for similar issues.



Actually Reg. Z negates the right to set off on credit cards. 226.12(d)
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