I am on a joint account with my son, as well as my personal (individual) account. I deposited some money into my individual account. His account was overdrawn. The bank withdrew funds from my personal account to pay the NSF charges on his acct without my permission. They said they could do that because my SSN is on both accts. Is this legal?
Untitled
In many states, bankers have what is called a "right of setoff" (sometimes called "offset") that permit such a transfer. You, as joint owner on your son's account, owe the bank money. In your other account, the bank owes you the balance. The bank can take money from one account to satisfy all or part of what's owed on the other account. Some banks also include that right in their deposit contracts. The problem is that you consider the joint account your son's, and to you, that may be the case, but as joint owner, you are liable for his overdraft balance in the account.
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In many states, bankers have what is called a "right of setoff" (sometimes called "offset") that permit such a transfer. You, as joint owner on your son's account, owe the bank money. In your other account, the bank owes you the balance. The bank can take money from one account to satisfy all or part of what's owed on the other account. Some banks also include that right in their deposit contracts. The problem is that you consider the joint account your son's, and to you, that may be the case, but as joint owner, you are liable for his 