I unknowingly cashed six fraudulent travelers checks that I received as part of an online scam. My bank is holding me liable for the money, which I understand, but can they overdraw my account to take the money back?
The teller manager said it would go to their collections department, but my account was charged instead. When I inquired about this she said that's what she meant to say. I asked if I could change my direct deposit to my savings and she said that they could take the money from there as well because I owe them.
I didn't know it was a scam. They are trained to spot fraudulent checks and I am not. The teller manager also stated that after I left, they noticed that one of them "didn't look right, but they ran it through anyway." Shouldn't she and the teller who cashed the check be held somewhat liable in this situation?
The bank has what is called "the right to setoff." This means that if you owe them money (such as from these bad checks) and they owe you money (such as from a checking or savings account) they can use one account to set off the other debt. This applies even if you are a joint account owner with someone not associated with these checks.
We recommend arranging with the bank some repayment plan that would replace their desire to collect this entire debt at once. That would give you both some peace of mind.
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The bank has what is called "the right to setoff." This means that if you owe them money (such as from these bad checks) and they owe you money (such as from a 