Legal Question in Business Law in California
Can my bank (bofa) withdraw funds from my account without my consent or without receiving
prior notice or a call from the bank?? . they said it was a credit card charge -off fee ($989.)
for a delinquent account that I was still in negotiations with the bank on.
4 Answers from Attorneys
I have never heard of any stautory limitation on a bank's right to offset amounts due it with the debtor's balance in another account, other than perhaps when the debtor is protected by the automatic stay in bankruptcy, if the debtor has signed a contract or contracts with the bank expressly permitting this. If you were to read the fine print of your credit card agreement, you would probably find it gives the bank this right. The negotiations should continue, and if successful, perhaps you'll get some or all of your money back. Meanwhile, it looks to me as though the bank may have exercised a right you gave it by contract. I have not researched this subject in detail and I could be wrong.
If you read your depositor agreement with the bank, you'll discover that they have the right to do what they did, and you agreed to it.
An attorney will tell you to read the contract with your bank. It is very likely they reserved the rights they now exercise. Consult with an attorney in your area for specific advice.
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
Kevin B. Murphy, B.S., M.B.A., J.D. - Mr. Franchise
Franchise Attorney
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