Seven or eight years ago my son opened a checking account with me as a check signer, so I could handle his bills when he was out of town. He has been out of work for a year and owes $5000.00 to the bank for overdraft protection. The bank is telling me that I am just as liable as he is for this money. It is not a joint account. I am just authorized to sign his checks. I have asked for a copy of what I signed, but am told they need to investigate it.
Untitled
You certainly should not be expected to simply pay the bank without some proof that you are obligated to cover the overdraft. If you are, indeed, merely an authorized signer, you are not liable, and the bank is overreaching.
Stick to your guns and not do anything without documentation from the bank that you agreed to liability. If the bank doesn't back away from its claim (it probably will) you may need to talk to an attorney about how to proceed.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
You certainly should not be expected to simply pay the bank without some proof that you are obligated to cover the overdraft. If you are, indeed, merely an authorized signer, you are not liable, and the bank is overreaching.