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Unjust Bank Charges?
I am currently unemployed and the bank's "standard charges" are crippling me and dragging my account further and further into the red. To top matters, they have transferred money from another account, which they are aware is a holding account for my disabled daughter, as she is unable to manage it herself, but is in my name (it is for donations, etc.). Can they do this, and can I demand they repay it?
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Untitled
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 The process is known as setoff and you agreed to it in your Deposit Agreement with the bank. Basically it says that if they owe you money, and you owe them money, they can take from one to satisfy the other. You owned both accounts in whole or in part. It doesn't sound as though the bank has done anything wrong legally, so you can't require that they reverse this.
In the past there have been stories about children who had accounts with their parents. In one case, the IRS garnished the child's account for the parents debt. The parents were on the account and owned the deposits just as the child did. The parents were able to prove that all the deposits were gifts and paper route money. This proof, plus negative press, caused the IRS to return those funds. This is certainly no guarantee, but if you can show where the money in the account came from and where it is spent, you might get lucky. It is up to the bank.
Published on BankingQuestions.com 9/19/08
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