My younger brother had a negative balance, and our dad was a signer on his account. He had a job in Texas and we live in Oklahoma; he had bills to pay down here. Our dad is a signer on my account and the bank withdrew money from dad's and my account to balance out my brother's. Can they do that? If not, what do we do? Do I need an attorney? If so, what kind?
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If your father is a mere signer on your account and on your brother's account, the bank most likely overstepped its legal right to offset its obligations to depositors against a depositor's debt to the bank. Offset rights and laws provide that there must be common ownership of accounts for offset to be legal, and mere signature authority does not equate with ownership. On the other hand, if your father is legally a joint owner of the accounts, the bank's offset rights were probably legal.
Ask to see the bank's records to determine whether your father co-owns or merely signs on your account. If he is not an owner, ask the bank to review its action in charging your account for your brother's overdraft. If you don't get a satisfactory response, you contact your county or city's legal aid office for assistance.
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If your father is a mere signer on your account and on your brother's account, the bank most likely overstepped its legal right to offset its obligations to depositors against a depositor's debt to the bank. Offset rights and laws provide that there must be common ownership of accounts for offset to be legal, and mere signature authority does not equate with ownership. On the other hand, if your father is legally a 