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    Lasoto33's Avatar
    Lasoto33 Posts: 2, Reputation: 1
    New Member
    		  
    #1

    Jan 26, 2009, 09:57 AM
    Monies owed to bank
    I had an account with a bank about 4-5 years ago of which was closed for overdrafts. I know I still owe the money as I get letters from a collection company that they gave the case to. I recently went online and was able to open a new checking account with this bank. If I deposit funds into this account will they draft the monies I owed them from the old account ?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jan 26, 2009, 10:06 AM

    They could. Your original contract with them could make getting a judgement unnecessary.
    jdelk4's Avatar
    jdelk4 Posts: 10, Reputation: 1
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    #3

    Jan 26, 2009, 07:30 PM
    Scott is right. The clause in the account agreement is called "right of set off". Basically it gives the bank the right to use funds from one account to cover a deficit in another deposit account or loan. The only thing that could keep the bank from using the off set would be how the accounts are titled. To avoid any problems I would settle the old account or use another bank.
    Lasoto33's Avatar
    Lasoto33 Posts: 2, Reputation: 1
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    #4

    Jan 27, 2009, 08:40 PM

    Thanks and I agree with both of you as I am very verse in banking but my thinking was if they sold the debt to a collection company maybe they wouldn't have the debt on file any longer
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