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I am going through a rough financial period and have not been able to pay the minimum on my credit card, however i noticed that as soon as money came into my checkings account (I am in Canada, the bank simply transferred the amount that I owed them to my credit card. This is something that my bank has never done before and I was wondering if what they are doing is legal ?

I would have paid the amount since i got the money, I was just shocked that it was done on it's own and without my consent.

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    Did they transfer the minimum payment (which you may be legally required to pay) or the full payment out of your chequing account? Are you sure your agreement does not allow them to do this? Nov 29, 2013 at 22:21
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    You should review your contract when you signed-up for the credit card.
    – Victor
    Nov 29, 2013 at 22:22
  • They only transferred the minimum payment. I will review my contract. I would have paid it myself, but I was not aware that they could do this automatically. Thanks for the replies.
    – Canadian
    Nov 29, 2013 at 23:56
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    Keep in mind that if your credit card is with the same bank that your checking account is with, then yes, they can do that to "recoup" their foreseeable loss as they call it. I know its like that in the US and Europe, so I am assuming Canada might follow the same. Its probably buried in your fine print somewhere if you look. Nov 30, 2013 at 0:14
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    Are you sure you did not authorize your credit-card company to withdraw the minimum payment due on the credit-card statement from your bank account on the due dste? Nov 30, 2013 at 4:15

1 Answer 1

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If you have a deposit account (like a checking account) and a credit card at the same bank, it is common for the bank to have a clause that lets them make automatic payments to the credit card.

I've also seen this happen in the case of death where the deceased person had $2,000 in a checking account and owed some on a credit card. Upon death, the bank took the $2,000 and applied it to the credit card without asking.

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  • Yep.. same in the UK. Banks can automatically move money around if they want. There's always a clause.. lesson is keep them seperate!!
    – Jez
    Dec 3, 2013 at 16:33
  • Death is a very specific situation, when exactly that must be done - i.e., one can't inherit a checkings account or a credit card; inheritance is the sum of money remaining after netting them.
    – Peteris
    Mar 6, 2014 at 2:36
  • @Peteris : Yes, but they generally can't do anything about merging them without probate (though some jurisdictions set a lower limit on which that applies, so that day-to-day operations can continue).
    – Peter K.
    Sep 11, 2017 at 11:43

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