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Chase Bank allowing an unsecured Chase credit card to withdraw funds to pay cc


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Chase Bank for the past two months has allowed an unsecured company credit card issued by Chase to withdraw the minimum payment to pay the credit card from a Chase Bank account. I do not believe they can legally do this. Thoughts?

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In your credit agreement with Chase for the card and the account there is a provision call the right of setoff.

If you are delinquent in your payment, the bank can go into your account and take the funds because you have already given them permission when you opened the bank account.

It is explained a little better here in this article: http://www.financial-ombudsman.org.uk/publications/ombudsman-news/40/40_setoff.htm

So, the best advise, if you know that you are running into financial difficulty that you can not cure, move your bank accounts to a "neutral" bank where you do not owe any other funds. That way the credit card co has to go through the legal hoops to get a judgement against you before taking funds from an account.

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Chase Bank for the past two months has allowed an unsecured company credit card issued by Chase to withdraw the minimum payment to pay the credit card from a Chase Bank account. I do not believe they can legally do this. Thoughts?

Is it withdrawing money because you gave them your banking information previously in order to make payments on their website?

I had a Chase personal visa card that I stopped paying and then all of a sudden out of nowhere it started taking minimum payments out of a checking account number that I had given them to setup online payments (but had never actually used to pay them). Fortunately they hit a "dry hole" so to speak. :lol:

Either way, whether it is them doing it contractually or just an "internet mistake" you need to cut that bank account loose, you can never confidently put money in there anymore.

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