My bank in Massachusetts executed the right to offset and wiped out my checking account to cover an older account I had with that same bank months ago. According to MA law it states that the bank must send a certified letter stating that they are going to excercise right to offset, which I never received. What can I do about this? They took my rent money!
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The bank is required by Section 19 of Chapter 167D of Massachusetts General Laws to send you a notice by certified mail at the time it exercises its set-off right, not in advance. You certainly can inquire of the bank as to whether it sent you the required notice. It's possible that the notice was not delivered to you by the postal service. It's also possible that the bank neglected to send the notice.
According to the law, if the bank failed to send the notice, you are entitled to recover your actual damages caused by the failure to notify. If you actually have suffered damages because you did not get the notice, you may have a case, but you aren't entitled to damages based solely on the fact that the bank took your funds. For example, if the notice would have prevented you from writing a check that overdrew your account, you'd be entitled to the overdraft charges and any other costs resulting from the overdraft, but you'd not be entitled to damages because you couldn't pay your rent.
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The bank is required by Section 19 of Chapter 167D of Massachusetts General Laws to send you a notice by certified mail at the time it exercises its set-off right, not in advance. You certainly can inquire of the bank as to whether it sent you the required notice. It's possible that the notice was not delivered to you by the postal service. It's also possible that the bank neglected to send the notice. 