Crap1 and ING - are ING accounts in danger?

[GADawg2010]

As y'all may be aware, Crap1 has bought ING Direct bank and brokerage. So, in theory, it seems as though any money in an ING bank or brokerage account is now in a Crap1 bank or brokerage account. Could Crap1 now seize these assets to pay off defaulted Crap1 credit card debt, without even needing to sue or get a judgment/garnishment?

If someone owes Crap1 money, should they be getting their money out of ING accounts now?

IIRC, BoA was trying something like this during the worst of the financial crisis - seizing the accounts of customers who also had BoA credit cards but were defaulting on them. Scary stuff.

[legaleagle]

I should think not, they can't levy a bank account unless they get a judgment. At any rate, it isn't a good idea to have money in a bank that you were or are in litigation with. If they already had a judgment against you, they could have levied any bank account you had whether they owned the bank or not.

[KentWA]

Some banks, especially Credit Unions have Universal Default clauses in their T&C that allow them to hit other accounts to make payments when you are late. I do not know about Cap1.

[GADawg2010]

Some banks, especially Credit Unions have Universal Default clauses in their T&C that allow them to hit other accounts to make payments when you are late. I do not know about Cap1.

AKA "Cross Default" clauses. And this is exactly what I was thinking about.

[Guest usctrojanalum]

I should think not, they can't levy a bank account unless they get a judgment.

Google "Banks Right of Set off." Would it apply in this case? I don't know. But I wouldn't risk it.

[legaleagle]

Probably not, setoff is specific, I had one related to an overdraft situation. If they have a specific charge that cannot be disputed, they can set off another account you have. I think CC cases are different, they need to be adjudicated.