The BofA deposit agreement appears to be similar in language. It specifically calls out the right applies to any affiliates also so I assume that could include Merrill, but it also excludes consumer credit cards and tax advantaged accounts. Based on what I can tell it seems most consumer credit cards have some protection from the right to offset but you have to check if you've waived that right. These protections do not appear to extend to business accounts/credit cards and other types of debt. Indeed there is a post from earlier this year where someone had defaulted on a card for their business at BofA and BofA subsequently seized funds in their personal account.Take this with a grain of salt, but Chase's deposit agreement calls it a setoff and it says that it doesn't apply to "debt created under a consumer credit card plan." But it does mention that the right to setoff applies to "all of your accounts."
I would be interested to know this as well. It could be a downside to banking/credit cards where you have a brokerage. Same with a mortgage.
So I'm guessing they can't do it for a credit card, but can for something like a loan or mortgage? It's also not clear if it applies to JP Morgan since that's a separate company under the JPMC umbrella.
Those trying to consolidate business and consumer accounts in one institution may take pause at that.
Statistics: Posted by PersonalFinanceJam — Sun Oct 13, 2024 10:22 pm