Money taken from checking account

Submitted by Anonymous (not verified) on Tue, 04/21/2009 - 08:11

I have a business credit card and personal checking account with the same bank ... I fell behind with the credit card and the bank cancelled my card and took the entire amount out of my personel account .... can they do that

Hi. Did you have a automatic payment on this card? Like an automatic debit from your bank to pay for this cc?

Tue, 04/21/2009 - 18:59 Permalink

Hi Ron
If you have linked your credit card with your checking account while filing up the credit card application form, then you have authorized the bank to debit money from your account if you fail to make payment on the credit card within the due date and so it is legal.
Can you tell me whether the bank has reported the debt to the bureaus before they have taken the money from your checking account?

Wed, 04/22/2009 - 05:35 Permalink

Hello all,

Working for a bank I can tell you that you don't even have to have your credit card linked to your checking account in order for them to do this. Any financial institution can debit a deposit account you have with them to pay off a debt with another account also with that bank if you are behind. I've seen this a lot when you have two checking accounts and have overdrawn one of them so they just debit your current account to payoff the past due one. If you really want to make sure than just request a personal and business account aggreement for both of your accounts. I'm sure it's listed in there somewhere....

Wed, 04/22/2009 - 10:15 Permalink

Yes this is true. You need to read the fine details. I believe banks have to do this to protect their interests. It would seem resonable for a bank to attach another account in their office to pay a defaulted one. Hoppefully they did not report to your credit report because this would really mess up your score. I would suggest calling them and asking if it was reported. If it was not you may be glad they took this action in the long run instead of having the mark on your report.

Wed, 04/22/2009 - 13:29 Permalink

Hi Ron ,

Welcome to our forum.

If you has linked your card for auto payment from your bank account then they will took amount from your account to pay your credit balance.

If you have not linked your card when your payment going on pending the bank will inform you about that & request to make payment from your bank account.

Thanks & Regards.

Wed, 04/22/2009 - 17:15 Permalink

That could be true but the ooster mentioned that he defaulted and they took the entore amount so I am assuming they took what her owned in total on the account

Wed, 04/22/2009 - 23:03 Permalink

Hi cbass
I have a question? Since you are working with a bank, I think that you can solve my query.
If I have huge credit card debts and I am willing to settle the debt for less (say for 40%). Will the bank agree to settle the debt if I have an account with the same bank where my salary gets deposited directly and the account has high balance. Is it possible that the bank will debit my account directly for the credit card debt when my next salary credit comes in.

Thu, 04/23/2009 - 06:57 Permalink
Pankaj (not verified)

There is no requirement for anoyne to report to credit agencies. In some cases, nothing may show up at all unless you are delinquent.What kind of account are these cash advances from? A loan or line of credit would often be reported, but may only indicate whether it was paid as agreed or how long it has been delinquent, not necessarily monthly reporting.I am not even sure how business credit is reported. One bank changed one of my personal credit cards to a business credit card (I don't even have a business) and it is not listed on my credit reports. I do use it mostly for reimbursable business expenses, but it is not in any way associated with my employer.

Sat, 09/29/2012 - 12:56 Permalink