Wamu

[Overmylimit]

I have a 50k business credit line with Wamu one of several, they call a LOT. I was 2 months behind to the tune of 1600.00 dollars. They set off the amount and took it from one of my business checking accounts. So I was all caught up and current as of Sept 1st. That part didn't bother me because it is owed to them and they just found one of my accounts and took money to bring it current. What bothers me is I sent a payment last week so its a few day late but the amount I usually sent has doubled which I didn't know, and they called my house today and asked for my wife (I wasn't home) they asked for her by name and started grilling her about payment, address, other phone #'s etc. The part that gets me there is she isn't even on my business loan or any accounts with Wamu, can they do this?? I thought they weren't suppose to discuss your account with anyone not on the account....

[justbroke]

The part that gets me there is she isn't even on my business loan or any accounts with Wamu, can they do this?? I thought they weren't suppose to discuss your account with anyone not on the account....

I'd find out quick.

Did she in anyway guarantee your business debt? Is she a corporate officer, director, or partner?

In any event, I'm not sure you're protected by the FDCPA because it was meant to protect consumers and consumer debt, not business debt.

[Overmylimit]

No she isn't anywhere on the paperwork, but now that you mention it I think I read somewhere that the rules are different for business lines, I had better check this out quick...Thanks

[getmeoutofhere]

wow

They set off the amount and took it from one of my business checking accounts. So I was all caught up and current as of Sept 1st. That part didn't bother me because it is owed to them and they just found one of my accounts and took money to bring it current.

How were they able to take money from your account with you your authoriziation? Or...without a judgement and writ of execution?

[justbroke]

How were they able to take money from your account with you your authoriziation? Or...without a judgement and writ of execution?

It's called a Right of Set-Off. A little read and -- as you now know -- known part of your Agreement with most Banks issuing any type of credit product.

It's where a Bank may offset the money you owe them, by using another "relationship" you have with the bank to pay what you owe them.

My Bank did this to me by charging off my Line of Credit and taking the money out of my checking account. This was ONE day after filing for Bankruptcy. They then froze that account.

So, and I think this is a sticky now...

Never declare Bankruptcy -- or threaten Bankruptcy -- while owing money to a Bank or other institution in which you have CASH deposits!!! They will set-off the amount and drain your account. They may also freeze your account as well. Plan, Plan, Plan. Move your money to a neutral Bank first!!!

[Overmylimit]

Your right they can take every cent in ANY account that you have with them, they didn't care that it was a payroll account that I keep employee wages in so I can pay my workers they just took it. By the way I have never told the bank that I am thinking of BK. Today I get a letter telling me I am late also..but not just one but three identical letters all in different envelopes. They also called about 6 times today each time I answered (because I wanted to fire into them for giving out my loan info to someone not on my loan) but every time I answered they just sat there and didn't talk. I have their caller I.D. so I know it was them....weird

[epiphany]

Spouses are an exception to the FDPCA rules (they are not defined as third parties whether they have any liability for the debt or not) except in some complex medical debt situations.

Sorry.

ep

[treehugger1]

Agreed. There is no rhyme nor reason to if/when/why you might be sued for a debt.

I do believe that the statement related to CA's and JDB's running your credit has something to do with their checking whether or not you are worth any actions. I have two such inquiries on my credit report at this time; a "Law offices of," and what appears to be "Collect America." I do hope they examined my reports in detail and saw the $150K of unsecured liabilities versus nothing that supports any hard assets. What a bunch of loons.

Both inquiries are illegal under the US fair credit reporting act, but I'll deal with this later; the least of my concerns at this time.

In terms of your bank, shut the accounts down and move to a new bank before a Chexsystem report shows. Even then, this is no big deal. There are plenty of ways to "bank," unrelated to our normal/legal definition of banking.

In my opinion, protect yourself, any employees, and dependedents first. Answer any court summons to the best of your ability, and prepare yourself for the fact that creditors/CA's will eventually want their (your) money. They are, afterall, more than likely entitled to it.

[Overmylimit]

Very true, I also have a credit monitoring service thru Experian (I used to watch my credit like a hawk) and see that pretty much all of my Banks are pulling my credit a least once a month. So my credit score about two months ago was 782 is now diving. It doesn't really matter if I file BK anyway. But I have called some of these banks and they said they have the right to pull credit at will, so I'm not sure what I could do. Oh and by the way my business lines aren't thru local banks either they are all the biggies, Wamu, B of A, Bank of the West, Wachovia, Wells Fargo theres more....well you get the picture the wrath is coming for me its just a matter of if I can weather the storm.....