My name was on several certificates of deposit I had with my husband. Can he legally remove my name without my knowledge or consent? Is the bank liable?
Any person who is an owner on an account can withdraw all of the funds in that account and open a new one in their name only. Most banks require one account to be closed, rather than to remove a name, but it can happen that one owner will remove another. The power to do this is similar to the closing and opening scenario mentioned above.
The reason for closing and opening in the case of a checking account, is the problem of what to do when a check arrives, signed by the person who was removed. Based on the date of the check, when it arrives and the fact that the person isn't on the account now just creates issues. In the case of a CD, that problem doesn't exist, so yes, an owner may be allowed to do this. This is based on the ownership rights each person has. The bank has no liability, they just followed an owners instructions.
Published on BankingQuestions.com 2/19/08
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Any person who is an owner on an 