I’ve written about the right of set off before , and why I prefer to keep my larger deposit accounts at different banks than my credit card and loan accounts .
Well penfed just sent this letter making it even Clearer thst your penfed CC isn’t really an unsecured card. It’s a secured card and they can take any deposits you have with them if you default - even if you are a joint account holder, they can take funds from a joint account .
Now maybe you’re thinking "ok I’m not a deadbeat I’m not going to default " - well they also make it clear that If you die, and you have a joint account , say with your husband or wife , they will help themselves to the balance in your deposit accounts to pay off your cc , without asking and without going through the probate process . Funds your spouse might desperately need when you die .
Just a heads up - not all lenders and cc issuers do this , but many do .