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Using Banks and Bank Accounts/CD funds
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Question
Hi
My checking account was overdrawn and my bank took funds from one of my certificate of deposit accounts with out my consent or knowledge to pay it! Can they do that? I had any of my CD's listed for overdraft protection!
thanks
Mary
Mary, Yes, the bank can do this. It gets this right from the contracts you signed (signature cards. The action taken is called the "right of offset". This means they can funds from one account to offset an obligation including a delinquent loan payment or an overdrawn account. Jim
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Answers by Expert:
Jim Meadows
Expertise
I can respond to most questions concerning consumer and business relationships with US financial institutions. My expertise touches on deposit and loan issues and particularly on strategies to navigate through bank policies personell and practices. I have a degree in Economics, attended law school, Graduate Shool of Banking, and Commercial Lending and Compliance Schools.
Experience
I have twenty years experience as a bank CEO. Most of those years were spent operating a bank focused primarly on serving consumer/retail needs. I helped pioneer deposit and loan products for low/moderate income individuals. I currently serve on multiple bank boards and am Chairman of a Commercial Bank in Atlanta.
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