Protecting the Rights of Consumers
For Over 25 Years
Edelman Combs Latturner & Goodwin LLC
Question: I had an old bank account from 2006. It was charged off. Sept 2006. I reopened an account and now they have depleted all of my funds with out notifying me. Can they do that?
Answer: Yes, a bank has a right of setoff that entitles them to do that, unless the debt is a credit card. Generally, it is not a good idea to maintain an asset account (checking, savings, etc.) at a financial institution to whom you owe money, if you can avoid it.