April 24th, 2009 by Questions
i had a creditcard company go into my personal account and take out money for my visa payment with out my permission or warning or a letter
Posted from: Ontario
April 24, 2009 at 9:09 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
This is referred to as set-off. If you owe money to the place you are banking they have the legal ability to go into your account at any time and take money out of the account without notification. This is a right that will expire when a bankrupty is filed and the Stay of Proceedings is initiated.
As well, whenever someone files for bankruptcy I always suggest they open a new account with an institution they don’t owe money to. Doing this reduceds the liklihood that a bank will be able to exercise this option as when the amount owing and the account are held at different banks, then for someone to seize any monies they have to give you notice and go to court, they can’t simply exercise the right of set off.
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