Legal Question in Credit and Debt Law in New York
Joint checking accounts and Individual checking accounts
I have an individual checking account & savings account at my bank. My fiance recently started working and doesn't have an account. I wanted to deposit his checks into my account but the bank told me he had to open his own account or open a joint account. We opened a joint savings account. This account is not linked to my individual accounts. He recently did some free-lance computer work and was paid by check. Because it was a paycheck, the bank let him cash it against the joint savings account even though there wasn't enough in the account to cover the check. The check bounced. Yesterday I received a copy of the check in the mail and the bank debited the check against my individual checking account. So, now I have no money in my account and the only thing that kept my checks from bouncing was overdraft protection. I can't even cash my own paycheck against my individual account. Is it legal for the bank to debit my individual account for a check that was deposited to the joint account and was not made out to me or endorsed by me?
Thank you.
1 Answer from Attorneys
Re: Joint checking accounts and Individual checking accounts
I don't know of any law which prohibits this. In fact, I had a similar case last year, and I was shown cases (from the bank's lawyers) in which the practice was supposedly upheld in the courts. You ought to check your account agreement with the bank; it probably says they can do this. If it doesn't, however, they probably can't do it.
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