<< Back to all Blogs
Login or Create your own free blog
Layout:
Home > Closing a Line of Credit
 

Closing a Line of Credit

June 14th, 2008 at 04:08 pm

While married, we had a line of credit (home equity) with a national bank. It was for a large sum of money. When we separated, I requested a freeze on the line of credit. A freeze means neither one of us can get any money or use the line of credit. This protected us both. The bank did it immediately. They were very responsive.

My ex has bought me out of the house and my name is being removed from the title. However, when I spoke to the bank with the line of credit I found that it had not been closed nor had they had a request to close it. Closing was almost a month ago. It is still frozen. I guess it was because the balance was zero and it was just an oversight.

There are two problems. One, I don't want my credit used to get loans on the house and be responsible for repayment. Two, I don't want my credit tied up. I know it is frozen but stuff happens, better to protect myself now.

So, I asked a bank manager to close it and she said she couldn't without a letter from my ex. That was two weeks ago. Today, I stopped at another branch closer to where I was shopping and the assistant bank manager didn't have a problem with it at all. She said it would take $30 in court filing fees and 3 days. She said only one of us has to request the line be closed. So, I paid the $30 and I have my fingers crossed it will go through.

In the meantime, I have a call in to my ex asking him to give them a letter requesting the account be closed, but who knows if he will do it. My best hope is the closure just going through.

6 Responses to “Closing a Line of Credit”

  1. monkeymama Says:

    We had a line of credit against our old home that somehow didn't get closed on the sale.

    I don't know what the heck is with those LOCs. It took forever to get it closed. Obviously since we didn't own the property anymore, it wasn't in the bank's best interest to leave the LOC open. Wink

    Anyway, it may take some persistence...

    Good Luck!

  2. Amber Says:

    Good for you, I would close it as well. In addition, if you are on good terms I would type a letter and take it over there for him to sign

  3. klbb90 Says:

    He's a little ticked off with me right now. But, its not in his best interest either to have the LOC with me,so he might follow-up.

  4. Amber Says:

    good luck

Leave a Reply

(Note: If you were logged in, we could automatically fill in these fields for you.)
*
Will not be published.
   

* Please spell out the number 9.  [ Why? ]

vB Code: You can use these tags: [b] [i] [u] [url] [email]