Can B of A Offset New Bank Acct / Old FIA Charge Off?

[mf1166]

I have an old charge off from B of A / FIA Card Services that has since been sold to Portfolio Recovery Services, this has fallen off all credit reports, but was never paid. I have recently opened up a new savings account with B of A, but am afraid to fund it yet due to B of A being able to take the money from accounts because of right to offset.

 

My question is, since they have sold the debt to a CA, do they still have the right to offset, and take money out of the new account I have opened?

[deadbishop]

I'm not sure but have a question for you...with so many great credit unions out there why would you want to go and bank with them anyway? Plus why risk it?

If it was me I would put my money somewhere else and avoid the headache. IMHO

[bostonte]

Banks cannot offset for credit card debt. You're fine in that regard.

 

They could sue, get a judgement, and levy the account -- but they are prohibited from taking any action not equally available to any other creditor. If they had a judgement and your particular locations laws allowed a levy, they could levy your account at any institution.

 

This is specific to banks (vs. credit unions) and credit card debt. Other types of debts may be subject to offset depending on the circumstances.

[mf1166]

I've tried the couple of CUs in a reasonable distance and they're very strict about Chexsystems entries even being 3 years old.

 

I'm pretty sure they can't sue due to the age of the debt (SOL 4 years).