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Can Bank Deduct Funds after Direct Deposit?

Can my bank deduct funds from my checking account if it was overdrawn when I got paid via direct deposit?

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If the account had a negative balance before the direct deposit was received, that balance will be reflected in the balance after the direct deposit is credited to your account. For example, if your balance before the direct deposit was ($100.00), and your net pay amount was $500.00, the balance in your account after the direct deposit will be ($100.00) + $500.00 = $400.00.

Published on BankingQuestions.com 4/02/08