Chase Bank Chase bank took 315.56 from my checking account to cover a business loan in another account not linked to my checking account Phoenix Arizona
Recently, Chase bank took $315.56 from my personal checking account to pay a loan in my business account without my permission. These accounts are not linked together and I did not approve of the transaction.
When I went to the bank to complain about it, they told me that the accounts are linked by my social security number. I asked them to show me in writing where I signed up for this or that they could legally do this and the person told me that "they can do whatever they want!"
Ej
phoenix, Arizona
U.S.A.
5 Updates & Rebuttals
Ken
Randolph,Massachusetts,
U.S.A.
Sad but true
#6Consumer Comment
Tue, December 02, 2008
They are right, they can do it legally. It is called Right of Offset, and means that if any account that you are an owner of (in part or whole) is delinquent, they can take funds from any other account you own. For this reason, it is never well advised to have your personal accounts in the same bank where you have your business accounts.
You may be able to talk them into reversing the transaction, but if they think the are going to have a problem collecting the business account, it isn't likely. Worth a try though.
Good luck.
Ken
Randolph,Massachusetts,
U.S.A.
Sad but true
#6Consumer Comment
Tue, December 02, 2008
They are right, they can do it legally. It is called Right of Offset, and means that if any account that you are an owner of (in part or whole) is delinquent, they can take funds from any other account you own. For this reason, it is never well advised to have your personal accounts in the same bank where you have your business accounts.
You may be able to talk them into reversing the transaction, but if they think the are going to have a problem collecting the business account, it isn't likely. Worth a try though.
Good luck.
Ken
Randolph,Massachusetts,
U.S.A.
Sad but true
#6Consumer Comment
Tue, December 02, 2008
They are right, they can do it legally. It is called Right of Offset, and means that if any account that you are an owner of (in part or whole) is delinquent, they can take funds from any other account you own. For this reason, it is never well advised to have your personal accounts in the same bank where you have your business accounts.
You may be able to talk them into reversing the transaction, but if they think the are going to have a problem collecting the business account, it isn't likely. Worth a try though.
Good luck.
Ken
Randolph,Massachusetts,
U.S.A.
Sad but true
#6Consumer Comment
Tue, December 02, 2008
They are right, they can do it legally. It is called Right of Offset, and means that if any account that you are an owner of (in part or whole) is delinquent, they can take funds from any other account you own. For this reason, it is never well advised to have your personal accounts in the same bank where you have your business accounts.
You may be able to talk them into reversing the transaction, but if they think the are going to have a problem collecting the business account, it isn't likely. Worth a try though.
Good luck.
Edgeman
Chico,California,
U.S.A.
Right of offset...
#6Consumer Comment
Mon, December 01, 2008
This falls under the "right of offset". You can enter that term in your preferred search engine for a detailed explanation.
To put it briefly, the bank is allowed to pull money from one of your accounts to cover a shortage in another account. So if I were to have a business checking account that was overdrawn or a car loan where I missed a payment, the bank could pull the money out of my personal checking account.
Federal law does place a few limits on what the banks can do but the situation as you described it was legal.
Best of luck to you.