Can a bank take money out of my checking or savings account that I owe on a credit card that is in collections? Does it matter if the banks are the same or different?
In most cases a bank may not setoff funds from a deposit account for a credit card debt. This is especially so when the bank holding the deposit is different than the bank on the credit card. If the bank has the permission of a court, that would be another matter. This would indicate that a judgment was obtained and the funds on deposit are being garnished. A court agreed that the debt was valid and needed to be paid. The persons assets, including deposit accounts, may be used to repay the debt, per the court.
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In most cases a bank may not setoff funds from a 