credit_h Posted May 28, 2013 Report Share Posted May 28, 2013 I have a checking/savings account at Chase with $6000. If I owe WAMU $5000 in credit card debt that has been charged off but not yet sold and Chase acquires WAMU, can Chase exercise right of offset from WAMU CC agreement to seize $5000 from my Chase checking/savings account? If yes, can they do that even if it is out of SOL? Link to comment Share on other sites More sharing options...
credit_h Posted May 28, 2013 Author Report Share Posted May 28, 2013 Found this:"However, federal law limits what a bank can do in some cases. For example, federal law won’t allow a bank to offset your deposit account to pay off your consumer credit card account."http://www.helpwithmybank.gov/get-answers/bank-accounts/right-of-offset/faq-bank-accounts-right-of-offset-01.html So I guess I could leave money in the same bank I owe credit card debts to without worrying about the funds being seized? Link to comment Share on other sites More sharing options...
shellieh98 Posted May 29, 2013 Report Share Posted May 29, 2013 they cannot seize your funds. Now if you had a credit union account, and a car loan with them, and they repoed the car, they could seize the funds IFit is in their contract language. Link to comment Share on other sites More sharing options...
admin Posted May 31, 2013 Report Share Posted May 31, 2013 In most cases, you need a court order to do this, unless what shellieh says - it's in your contract. Link to comment Share on other sites More sharing options...
nobk4me Posted May 31, 2013 Report Share Posted May 31, 2013 Why take the risk? There are plenty of banks out there that want your business. Link to comment Share on other sites More sharing options...
WhoCares1000 Posted May 31, 2013 Report Share Posted May 31, 2013 That is for another thread, why one would want to keep their money in Chase Bank anyways. Link to comment Share on other sites More sharing options...
credit_h Posted June 1, 2013 Author Report Share Posted June 1, 2013 I don't bank there. Since I don't keep up with these bank mergers and acquisitions, I am just asking in case the bank I am currently with is acquired by another bank that I owe credit card debts to. Link to comment Share on other sites More sharing options...
WhoCares1000 Posted June 1, 2013 Report Share Posted June 1, 2013 Generally you should get some advance notice on an aquisition or merger through the mail. You can withdraw your funds before the merger goes through. Link to comment Share on other sites More sharing options...
Torden Posted June 2, 2013 Report Share Posted June 2, 2013 Except in cases of FDIC takeover where often there is a sale pending in advance of the target bank even knowing the takeover is coming. One day it is Bank A. The next day it is a new subsidiary of Bank B and all your money is safe ... until Bank B figures out the match. Might be interesting if someone does lose money as a result of such an FDIC action and sues FDIC. Link to comment Share on other sites More sharing options...
Guest usctrojanalum Posted June 7, 2013 Report Share Posted June 7, 2013 Banks cannot use right to offset for credit card debt. only time i've ever seen it used is on overdrawn checking accounts where the depositor also has a savings account with money in it. Link to comment Share on other sites More sharing options...
flacorps Posted June 7, 2013 Report Share Posted June 7, 2013 I would not be a bit surprised to find some lawyerly interpretation somewhere that an offset which could not have been done by Bank A against an account in Bank A because of a defaulted credit card at Bank A suddenly becomes OK to do when the checking account is with Bank B and Bank B buys Bank A where the defaulted card is. We're talking about banks. Heck, whatever rule does exist softening the right of offset is probably on life support, and a few more shrimp and a couple of cocktails at some lobbyist's party and it's history. Link to comment Share on other sites More sharing options...
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