Bank removed substantial amounts of cash from a joint personal savings account to cover the business debts of one account holder without the other account holder knowing. Is this legal and how can the bank get away with it?
2006-07-30 11:18:09 · 11 answers · asked by Anonymous in Business & Finance ➔ Personal Finance
yes
2006-07-30 11:21:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The procedure sounds like what is called an "offset". An offset is the legal term when money is taken or offset to satisfy a debt. Yes if it was a joint account any creditor can attach the money in the account. What you want to do is look at the savings account agreement when you opened the account. Many financial institutions have offset provisions. This is fairly common if you have a loan with the bank, they will get you to offset any monies in savings, cd's or checking accounts.
Sorry but it appears to be legal.
Good Luck
2006-07-30 11:23:22 · answer #2 · answered by teenriodoll 3 · 0⤊ 0⤋
Completely legal. It would all be stated in the original loan agreement that one of the account holders signed. IT would state that they could cross colaterilze any funds held by that account holder, therefor because a joint account is 50-50 to each person they don't care if the account is joint or single. It's just money that the person owes to their loan, and they have every right to collect on it.
2006-07-30 11:41:42 · answer #3 · answered by ShouldBeWorking 6 · 0⤊ 0⤋
If their name is on the account it is an asset and therefore open to creditors. Before the bank hands over the money, however, I believe a court order is required; unless the creditor is the bank in question then they can just seize the money as per loan agreement. Most likely the other person on the account was fully aware of the situation and chose not to tell you.
2006-07-30 11:24:03 · answer #4 · answered by xtowgrunt 6 · 0⤊ 0⤋
Because it is a "Joint" account. Yes they can do it. What you need to do now is to sue, either the bank or the other account holder, to recover your portion. You would be lucky to get 50%. Less your legal fee's.
2006-07-30 11:21:20 · answer #5 · answered by InnerCircle 4 · 0⤊ 0⤋
Funds are available to both account holders and if you are behind on a loan the collector for the financial institute will pull funds to make loan current.
2006-07-30 11:40:14 · answer #6 · answered by John H 4 · 0⤊ 0⤋
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan
however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is:
http://umgarticles.atspace.com/debt-consolidation.htm
2006-07-30 22:26:33 · answer #7 · answered by Anonymous · 0⤊ 0⤋
yes they can. The only way to get it back is to go to court and prove what is yours be receipts and such. I beleive you have 30-45 days to do so
2006-07-30 11:21:56 · answer #8 · answered by ML 5 · 0⤊ 0⤋
not only can and will they do it but they can freeze your accounts so you can't take any out. So you better set up your own account asap!!!
2006-07-30 11:24:19 · answer #9 · answered by perplexed 4 · 0⤊ 0⤋
Yes, they can. It's happened to me before. Since it's a joing account, they look at it as "what's your is mine; what's mine is yours."
2006-07-30 11:22:11 · answer #10 · answered by First Lady 7 · 0⤊ 0⤋