Can a bank legally withdraw funds from my child's savings account to pay for a reported charge-off due to non sufficient funds?
If a person on the charged off account is also on the child's savings account, yes. There is ownership of the funds in the child's account and there is a debt owed. This process is called setoff and is agreed to by all parties involved in the deposit agreement (typically).
You could demonstrate to the bank why that is all the child's money and ask that they reverse the transaction, but there is no requirement that they do so. Some adults have been known to hide or shield their money from creditors by putting it in their childrens' names so that the bank may be skeptical.
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If a person on the charged off account is also on the child's savings account, yes. There is ownership of the funds in the child's account and there is a debt owed. This process is called setoff and is agreed to by all parties involved in the deposit agreement (typically). 