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Home >> Accounts >> Checking Accounts
Bank's Offset Causes Huge Problem for Me
In 2004, I opened a personal checking account with BankOne, which is now Chase Bank. This account was closed within that same year because of excessive fees. Unaware of an outstanding overdraft balance, I recently opened up an account with Chase Bank. This account has been opened for a few months now, and about a week ago I deposited a check in the amount of $2300.00. This was a cashier's check issued by Chase. The money was given to me in order to pay for a divorce. I am quite sure that is irrelevant for the banking company, but very relevant for me, especially given the situation. The bank debited the amount of the outstanding debt from the 2004 account. Had I any knowledge of this debt I would have taken care of it, but without communication from the bank how can I? Do I not have any rights at all where this is concerned?
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 All you can do is try to make arrangements with the bank. They used their right of setoff to take a deposit you had with them, to pay a debt you had with them. They were within their rights and the deposit agreement you had with them.
You should investigate the statute of limitations for your state, pertaining to debt collection. In many cases, assuming there was no activity on the account, state law may prevent them from this process. This site may give you more information.
If you feel they wrongly collected the debt, point out this limitation to them. Take it to a higher level if necessary.
Published on BankingQuestions.com 3/11/10
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