More info on Chase debiting accounts for old debts
We’ve reported on a number of cases where Chase, with no fanfare or notice, either before or after, will debit an account for an old debt either with them or an affiliated institution (i.e. one they’ve acquired). People are forced to call Chase to ask what gives as Chase doesn’t inform them why they did it.
The way Chase does this is wrong for a number of reasons:
1. At the very minimum they should inform the account holder
2. Given how many mistakes Chase bank makes in general that we hear about, it seems possible that the information about an old debt could be wrong. Especially considering all the integrations of data from other institutions they’ve done over the last decade.
Chase should be informing account holders before hand and giving them the chance to dispute it. If they are concerned an account holder clearing out their account to avoid paying the old debt, they can freeze the money without removing it from the account, until some resolution period has expired.
If you have been affected by such a money grab by Chase, one thing to consider is that there is a statute of limitations for the collection of old debt. You can find information on the statute of limitations by state here. It is not clear whether such statutes apply to this type of debt, but it is something worth trying.
Bad bad Chase | admin May 1, 2010
