My daughter had a checking account that was $65.51 overdrawn and $596.00 was charged in bank fees. Because the bank said that I was an authorized signer on the account, they debited my account of all of the funds I had in my account and without notification. Is this legal?
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Check to make sure you were truly an authorized signer on the account, and not a joint owner. In most cases, an authorized signer would not be liable for an account overdraft unless a separate guarantee were given. A joint owner would be liable under many deposit contracts.
Whether debiting your account was legal will depend on your legal status as a signer or an owner on your daughter's account, and if you were an owner, upon whether there was language in the deposit contract that makes joint owners jointly obligated for overdrafts. Without such language, a joint owner is not liable for overdrafts not created by other owners.
Take those questions to the bank for answers. If you believe that the bank erred in debiting your account and the bank won't reimburse you, you may have to talk to an attorney or your county's legal aid office.
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Check to make sure you were truly an authorized signer on the account, and not a joint owner. In most cases, an authorized signer would not be liable for an account overdraft unless a separate guarantee were given. A joint owner would be liable under many deposit contracts.