Can A Bank Offset My Account For An Old Debt

(Lakewood, CA)

I defaulted on a loan with bank of america 10 years ago. If I open a checking account with them now could they take money out of my account to pay off the old debt?

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Feb 02, 2016
old debt offset

Banks often have the right to "offset" funds you have on deposit with them to pay defaulted debts. Whether or not they can do that in your specific situation is impossible for us to say, but why take the chance? There are lots of other banks and credit unions where you can place your funds and avoid the problem all together.

Oct 27, 2016
Levied old debt
by: Anonymous

My bank levied my account saying I owed an old debt from a Chase Credit card back from 1994. I bank at chase now so they took $3000.00. Isn't this past my statue of limitations?

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In most states, yes, this would be beyond the statute of limitations. But we don't know where you live and so we can't say for sure here. If there was a court judgment the statute of limitations may have been longer. In some states judgments may be enforced for 10 to 20 years and may be renewed. If it is outside the statute of limitations, however, you may be able to take legal action. We recommend you consult a consumer law attorney in your state.

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