JP Morgan Chase buying WAMU: Offset question

[ALICIA21]

I got burned by Wells Fargo when they took $3500 out of my account and offset it against a credit card bill.

I now use WAMU. If JP Morgan Chase buys WAMU is my WAMU account subject to an offset by Chase?

It may not matter since I will be filing first week of October and I doubt that a deal can close that fast but then again who knows.

Advice?

great tips. I enjoyed reading this

[Stonecutter]

I stumbled across this forum while researching the "right to offset" regulations, as Chase had raided my WAMU account just this morning.
I had a personal business account with Chase which was closed in 2008 due to excessive overdraft fees. I started my personal WAMU account earlier this year before the Chase merger, but had an uneasy feeling when it was announced.
Anyway, I had a $1500 retirement annuity direct deposited yesterday and this morning Chase emptied my entire account to offset what I owed them from the closed account which had already been sent to collections.

My angst centers around the issue that in Illinois, retirement annuities are exempt from collections, judgments, bankruptcies, etc. Since the 'offset' collection was done for a closed account which Chase had already assigned to an outside collection agency, I feel I should have been protected under the Illinois statute. The bottom line is that the OCC has refused to enact policies would require National Banks to comply with state banking and consumer protection regulations, so they can pretty much do what they want.

One thing I would like to point out is that a National Bank cannot use the 'right of offset' to collect on a credit card or revolving credit loan. So anyone worried about that can rest easy. However if you have money in a WAMU account and owe money to Chase for any other type of debt..... withdraw it now!!! They hit me just this morning and the branch manager told me that Chase is going through the WAMU accounts to see which ones still owe them from former Chase accounts. So if they haven't hit you yet, it's going to happen soon. And once they do there won't be much you can do about it.

[Lajazz947]

I stumbled across this forum while researching the "right to offset" regulations, as Chase had raided my WAMU account just this morning.
I had a personal business account with Chase which was closed in 2008 due to excessive overdraft fees. I started my personal WAMU account earlier this year before the Chase merger, but had an uneasy feeling when it was announced.
Anyway, I had a $1500 retirement annuity direct deposited yesterday and this morning Chase emptied my entire account to offset what I owed them from the closed account which had already been sent to collections.

My angst centers around the issue that in Illinois, retirement annuities are exempt from collections, judgments, bankruptcies, etc. Since the 'offset' collection was done for a closed account which Chase had already assigned to an outside collection agency, I feel I should have been protected under the Illinois statute. The bottom line is that the OCC has refused to enact policies would require National Banks to comply with state banking and consumer protection regulations, so they can pretty much do what they want.

One thing I would like to point out is that a National Bank cannot use the 'right of offset' to collect on a credit card or revolving credit loan. So anyone worried about that can rest easy. However if you have money in a WAMU account and owe money to Chase for any other type of debt..... withdraw it now!!! They hit me just this morning and the branch manager told me that Chase is going through the WAMU accounts to see which ones still owe them from former Chase accounts. So if they haven't hit you yet, it's going to happen soon. And once they do there won't be much you can do about it.

Wow, I feel your pain. When it happened to me it messed me up quite a bit.

I am assuming that now that I am discharged I am safe with a WAMU account since I included CHASE in my BK.

Just the same I am now going to work on getting off Chexsystems in order to find a completely unaffiliated bank.

[Stonecutter]

I wouldn't make that assumption until you speak with your attorney. State chartered banks must follow state laws and regulations while National Banks do not. With a state chartered bank your deposits are protected under the bankruptcy. With National Banks, the research I've done says that only Social Security deposits, funds from VA benefits, Railroad retirement pensions and similar "Federal" benefits cannot be used for the Right to Offset. A bankruptcy may not protect you against a Right to Offset seizure by a National Bank, so I'd try to confirm this with your attorney before assuming that any funds you have with WAMU are untouchable.