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.
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.