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Pros and Cons of HELOC Debit Card Access
by Dan Persfull , BOL Guru
Guru BIOS
Question: Please provide some of the pros and cons -- particular as related to fraud risk -- of providing access to Home Equity Lines of Credit (HELOCs) via debit card.
Answer:
Pros:
- Convenient for the account holder.
- Less costly to bank than supplying paper checks.
Cons:
- The debit card will be a credit card and the account will be regulated by Reg. Z
- You lose the right to set off
- Visa/MC rules may not allow you to use their brand name
First published on BankersOnline.com 5/23/05
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