Right to Offset - BoA CC and CD held at bank owned by BoA

[StartingOver08]

The rep may or may not have any idea of what will happen.

Remember, every time a bank is taken over by another one, new terms and conditions go out to the consumers.

Maybe I am not as trusting as you are, but I would not want to be in a position to lose all of the principal betting that BOA does not want to offset their loss with your CD. JMO

[LadyInTheRed]

Update

I called the account rep and she told me that she didn't think BoA could offset against First Republic Account. She said that when Merrill Lynch owned First Republic, they didn't offset and their computer systems were completely separate. The computer systems are separate from BoA and she doesn't think they can offset. But, she didn't sound certain. So, I called the 800 number and asked the telephone rep. She put me on hold for a few minutes and them told me in no uncertain terms that BoA could not offset a First Republic Account for default on a BoA credit card.

So, I'm feeling pretty good about holding onto the CD, but want to wait until I get the copy of the credit card agreement I requested from BoA. Then my attorney's paralegal tells me on Thursday that I need to file before the end of the month because the bonus I received in April would make a big difference in my monthly payment. So, I ask the attorney and he says that BoA cannot offset unless it is a business credit card. I didn't ask for any guarantee because I know that most attorneys aren't likely to do that no matter how confident they are in their advice.

I was feeling 99.99% confident that my CD would be fine. So, I signed the petition and it was filed yesterday. But, there was still that .01% doubt nagging pretty hard! Did I just make a $10,000 mistake?? I logged onto First Republic last night and my CD and checking account were still intact (I wasn't so concerned about the checking account because I'm about to close it to avoid an $18 per mo fee and the balance is less than $50.) I woke up this morning and logged in to First Republic and everything still looks fine.

The mail came a while later and guess what was there? A copy of my credit card agreement. Nothing about a right to offset!

I read it again. Nothing!

I read it a third time. NO RIGHT TO OFFSET!!!

To anyone reading this who has a similar issue: Be careful about using my experience in deciding what to do. I gambled and I won. You may have different results.

At least I think I won. It's possible my CD could be gone Monday. But, if it is, I will fight to get it back!

[jimbo367]

I think that if they offset within 90 days of filing it can be recovered.