Credit Tips: Can a Credit Card Company Seize Bank Funds?

Posted On: February 1, 2006

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Posted: Sat Jan 01, 2005 1:01 am
Post subject: Can a Credit Card Company Seize Bank Funds?
David
Date: 10/19/2000 5:23 pm CDT

Hi there. My credit card company recently seized the contents of my bank account to pay off the balance I had owing on my card as I had prioritized it lowest of a set of debts I was paying down. Is this a legal action on their part?

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Posted: Sat Jan 01, 2005 1:01 am
Post subject: Can a Credit Card Company Seize Bank Funds?

BLE103
Date: 10/19/2000 8:42 pm CDT

Yes this is legal if you have a credit card through a bank where you also have accounts wether it is a savings or a certificate of deposit with the bank.This is knowm as a right to “set-off” which gives them the right to seize your accounts after you defualt on their credit accounts no matter what type of credit account you have with the bank.Now if you have your bank accounts with another bank which isn’t your credit card company.To me that wouldn’t be legal.Now i am not an attorney but from what i read in my bank account rules and regulations this is the only way i see that they can seize your bank accounts as i said at the beginning of my post.

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Posted: Sat Jan 01, 2005 1:02 am
Post subject: Can a Credit Card Company Seize Bank Funds?

BLE103
Date: 10/19/2000 8:52 pm CDT

Sorry i made an error on the word “set-off” which should read “off-set” which means they can seize your bank accounts.

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Posted: Sat Jan 01, 2005 1:02 am
Post subject: Can a Credit Card Company Seize Bank Funds?

Linda
Date: 10/19/2000 11:22 pm CDT

I’m not a lawyer either, but I think what you said is correct. It is one of the warnings about carrying credit card debt on a card issued by the bank where you have you checking and savings accounts. Many people sign that kind of agreement when they open the account, then months or years later, they get a credit card from that same bank. The original agreement stands, and folks aren’t even aware of it. Any other creditor would have to get a judgement against you first.
Linda