|
 |
Home >> Manage Your Money >> Debt Management
Overdrafts Activate Right of Offset
I used to have overdraft privileges which were closed down a while ago. Lately my bank has been taking money out of my accounts without my consent. One account I'm on with my son. They even took out of that account and tried to cancel his checking account. I have financial problems now, such that I can lose my home and not pay for medicine, but I know I owe the bank money. I had to fight to get them to put money back, and they put about three-quarters of it back. What do I do to stop them from taking out any money unless they have my total consent?
|
Untitled
|
 They already have your consent. If you review your deposit agreement with them it likely says something to the effect that, "Setoff - You agree to setoff if any debt is owed." That means if they owe you money, the deposit account, and you owe them money, the old overdraft balance, they can take money you have rights to, and pay all or part of the debt you owe them.
If you have a deposit account in your name only, those are clearly your funds and they can take all of the balance, up to what is owed to them. If you have a joint account with your son, you have ownership over those funds. You could go in and withdraw all that money. It isn't half yours and half his. It all belongs to both of you individually, so the bank can take that as well.
Talk to the bank, explain your situation and make an agreement to pay them $10 a month, $20 a month, or whatever you both agree is reasonable. With that agreement in place, and you making the payment, they should not look to setoff any more money.
Published on BankingQuestions.com 2/19/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
