Personal Finance

bank right of offset

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  • Jun 15th, 2022 1:03 pm
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Newbie
Apr 14, 2022
1 posts
2 upvotes

bank right of offset

Hi, Can creditor bank take money out of my credit card account (not my chequing or saving account but issued by the same bank) without asking a authorization?
If it is possible, can they charge beyond my available balance?
8 replies
Deal Addict
Jan 30, 2012
1836 posts
1399 upvotes
TORONTO
scootermania wrote: Hi, Can creditor bank take money out of my credit card account (not my chequing or saving account but issued by the same bank) without asking a authorization?
If it is possible, can they charge beyond my available balance?
Right of offset normally means that a bank can seize money that you have with them to pay of a debt that you have with them.

So if you have a credit card with RBC, charge $1000 on that credit card and don't pay, RBC could seize $1000 from a savings account that you have with RBC without having to go to court.

It sounds like your asking if RBC can charge $1000 to a credit card that you have with RBC to pay off a different $1000 debt that you have with RBC (such as a line of credit, mortgage, whatever). RBC can't do that - it would be be an RBC debt going to pay a different RBC debt.

Not sure if trolling, it's a brand new account with 1 post...
Deal Addict
Nov 6, 2015
1354 posts
1022 upvotes
Guelph, ON
No, and considering they can do it only within their own products, what would be the point? E.g. you owe $1k on a TD LOC, they "pay themselves" from your TD credit card, do they now have $1k that they didn't have before?
Deal Addict
May 16, 2017
2809 posts
3664 upvotes
If the Bank was already intending to use the right of offset, it would be more likely to CLOSE that credit card account to prevent more bad debt from being racked-up.
Newbie
Jan 10, 2020
43 posts
74 upvotes
scootermania wrote: Hi, Can creditor bank take money out of my credit card account (not my chequing or saving account but issued by the same bank) without asking a authorization?
If it is possible, can they charge beyond my available balance?
If you think your credit card limit is your money and not the bank's, maybe that's why you're in a position to worry about offsetting.
Deal Addict
User avatar
Aug 18, 2008
3909 posts
2338 upvotes
Ottawa
JoeBlack23 wrote: No, and considering they can do it only within their own products, what would be the point? E.g. you owe $1k on a TD LOC, they "pay themselves" from your TD credit card, do they now have $1k that they didn't have before?
Well technically, now the bank can charge ~20% interest on the debt if it's on the cc (slightly more if it's classified as a cash transaction).... but in terms of addressing the debt amount, I agree there's no point.
Deal Addict
User avatar
Feb 23, 2004
4205 posts
505 upvotes
Calgary
does any bank do this to old debts over 6 years? thx
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Deal Expert
Oct 27, 2003
18444 posts
9757 upvotes
Greater Toronto Area
robsaw wrote: If the Bank was already intending to use the right of offset, it would be more likely to CLOSE that credit card account to prevent more bad debt from being racked-up.
THIS, yes.
Deal Expert
Oct 27, 2003
18444 posts
9757 upvotes
Greater Toronto Area
kocoman wrote: does any bank do this to old debts over 6 years? thx
Also wondering this.

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