Question

can my bank take money out of my account without my permission, for a credit card payment?

i lost my job a while ago but finally just got hired, i was not able to make payments on a credit card i had with the same bank. my question is can they take money out of my account without permission to "pay off" whatever i owe them? i know i probably will not be able to make a payment really soon because i have other priorities at the time (food,gas) and the whole hiring process and training will take a bit. i would not like to wake up and find out they took the last couple hundred of dollars i had...
i have not signed or had any kind of agreement where they can take money automatically out of the checking account i have with them...

4 years ago - 5 answers

Best Answer

Chosen by Asker

Yes, they can. It's called cross collateral. It's in the fine print of the credit card and probably the bank account too. If you fail to make on time payments on a loan or credit card, the bank can take the funds from your account.

It's not a matter of an auto payment agreement. The bank account is collateral against the credit card. They are taking the collateral to cover the defaulted debt.

Source(s):

4 years ago

Other Answers

When you first got the credit card you signed something that set all the rules. It was probably in the fine print.

by stevepitt2 - 4 years ago

They may exercise their right of set-off against your accounts if you do not cooperate in establishing a payment plan. Just be honest with them and try to catch up as soon as possible.

Most banks will work with you if you try to make a minimum payment. If you stonewall they will get either get a judgmentment and garnish your wages or use their right to set-off to collect the debt you owe them.

by cainvest1 - 4 years ago

Yes they can. Read your account agreement. It's called "right of set off".

by Common Sense - 4 years ago

Put your checking/savings at another bank so they can not debit your accounts

Source(s)

by stan c - 4 years ago