Legal Question in Credit and Debt Law in California
In 2007 I had a Washington Mutual checking acct. and it was closed by the bank due to going $2,000 negative in the acct. I received calls from them to pay back and then started receiving calls from a collection agency to pay back the debt. I understand that I needed to pay back, but I could not at that time due to unemployment. I recentley opened a new Chase Checking acct. After three weeks of the account being open, Chase went ahead and withdrew all my monies ($1,400) and applied it to the old Wamu checking acct. They left me with a balance of zero and then they allowed ACH to go through and then the acct went negative ($172). This acct is still open and I will be able to put monies in this week to cover the negative balance. My question would be..... Is a financial institution legally allowed to levy a bank acct to pay back and old acct without notice to the consumer?
2 Answers from Attorneys
In case you didn't get the memo, Chase and WaMu are the same bank. Your question is in the category of Whining.
You owe the bank money. You can't avoid them collecting by changing the account. Of course they can take money you deposit in a new account when you have blown them off on overdrafts under another account number. It's all your deposits into a bank you over drew and refused to pay. You're lucky they didn't prosecute you.
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