My wife and I have a jointchecking account that has been overdrawn for a few weeks. Without notification, my bank suddenly transfered funds from my personal savings account, my personal checking account, my personal Christmas club account, as well as my wife's personal checking account to satisfy the overdrawn amount on the joint account. By doing that, they are causing me to default on a payment that I was to have made from my savings account, as well as causing my personal checking accounts to now be in an overdrawn state, for which I am sure that they will charge me an overdraft fee. Are banks allowed to drain all of your accounts to satisfy an account that is overdrawn without first telling you of their intent?
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Whether or not notice is required before a bank exercises a right of offset, is a matter of state law. In some states there may be an advance notice requirement. In others, there may be a requirement that a notice be sent at the time the offset is made. The bank's offset rights may also be affected by their deposit contracts.
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Whether or not notice is required before a bank exercises a right of offset, is a matter of state law. In some states there may be an advance notice requirement. In others, there may be a requirement that a notice be sent at the time the offset is made. The bank's offset rights may also be affected by their 