Because of a divorce, my checking account got severely overdrawn. I was able to keep it out of the red for awhile, but then too many bills got in the way. It was closed by my bank for being overdrawn too long. I called the local bank and found out that the account was closed on Oct. 14, 2009. On Oct. 16, 2009, my paycheck was electronically deposited into my closed account. They kept my whole paycheck! I have no other real source of income to provide for myself and my daughter, can they legally do that?
Untitled
Yes, it is called setoff. Your deposit may have reopened the overdrawn account. All deposits will be used to repay the overdraft. Until that is satisfied, you will have problems.
The answer may be to contact the bank, explain your situation and ask to make repayment arrangements. Those arrangements would preclude setoff of all deposits.
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
Yes, it is called setoff. Your deposit may have reopened the overdrawn account. All deposits will be used to repay the overdraft. Until that is satisfied, you will have problems. 