Credit Cards

[Creditaddict]

Wondering if anyone has had any experience with havig a chase checking/savings and a chase credit card going bad and them taking all the money in your other accounts??

[Shogun]

That's a good question.  I personally have no idea but would be interested in someone's experience with that situation.

[distantarray]

never heard of this happening, but I know Bank of America did not when I defaulted on their credit card 13 years ago lol

[StartingOver10]

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Creditaddict wrote:

Wondering if anyone has had any experience with havig a chase checking/savings and a chase credit card going bad and them taking all the money in your other accounts??

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I have not had the experience,  but if you look at their terms and conditions, you will see that they can do it. It is the Right of Setoff - they can withdraw from any or all of your deposit accounts to bring a deliquent account current. CU's have this too - and tend to use it earlier from what I have seen. (This is normally referred to as cross-collateralization with a CU).

BOA does it very quickly. My daughter had a checking account and cc with BOA and they overdrafted her checking to "pay" the cc to current. She found out the hard way.

[Creditaddict]

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StartingOver10 wrote:

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Creditaddict wrote:

Wondering if anyone has had any experience with havig a chase checking/savings and a chase credit card going bad and them taking all the money in your other accounts??

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I have not had the experience,  but if you look at their terms and conditions, you will see that they can do it. It is the Right of Setoff - they can withdraw from any or all of your deposit accounts to bring a deliquent account current. CU's have this too - and tend to use it earlier from what I have seen. (This is normally referred to as cross-collateralization with a CU).

BOA does it very quickly. My daughter had a checking account and cc with BOA and they overdrafted her checking to "pay" the cc to current. She found out the hard way.

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it's been a while since I have heard of it happening... If they can't bring it current by taking checking balance does that mean they won't take any

LOL

[StartingOver10]

I don't know. But when BOA did it to my daughter they took a large amount from her checking and she diidn't have it in there so it started a whole bunch of NSF's. Is it a temporary thing you are going through or do you think its going to be extended?  If it's temporary then call and make arrangements. If its going to be extended, close your deposit accounts while you still can do it.

[bostonte]

Chase can not do that for a credit card.

Banks are prohibited from offsetting funds in your normal deposit accounts to pay a credit card, unless they do so through a process that is as equally available to other creditors (for example a court judgement and a levy).

They can do it for other types of loans -- overdraft, line of credit, car loan, etc. (provided the account agreements notify you, which they usually do) 

Credit Unions have a different regulator, and have less restriction on what they can offset.

I have no idea why the regulators have decided to treat credit cards differently than other types of loans, but they have.

[somnipotent]

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Creditaddict wrote:

Wondering if anyone has had any experience with havig a chase checking/savings and a chase credit card going bad and them taking all the money in your other accounts??

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No idea with Chase.  When I had my rough patch with BoA they never touched my checking account.  I closed it anyway.  Are you being curious or are you in trouble with Chase?  If the latter, I'd call them up and talk to them before you let it even get to that point. 

[jmcmillan]

I was majorily delinquent on my account, and had defaulted, and they never touched my deposit accounts. I went all the way to 120 days late (the day before charging off) without them offsetting.

As bostonte mentioned, I don't think they're allowed to.