Can A Company Legally Attempt To Draft Your Savings Account If They Can't Take From Your Checking ...

Question

I had my checking account frozen due to fraudulent activity, with directions to my credit union to only allow direct deposits through while it's being investigated. Turns out, the credit union had my direct deposits re-directed to my savings account, and I got a big fat surprise waiting for me when I checked my account activity a few minutes ago ... someone attempted to draft my SAVINGS ACCOUNT ... TWICE!! AND I got charged ... twice!!

And it's too late in the night to get more information about the culprits!

Before I call tomorrow and make a big stink about it, I need to know ... is the credit union responsible for allowing this to happen? Or will I need to go through the company or companies that attempted to draft this?

I'm really boiling right now that this could've happened, when I took steps WEEKS ago to try to put a stop to this! And I'm aggravated that I have to wait until first thing in the morning to talk to someone about it!

I know from past experience that the credit union uses every excuse in the book to shift responsibility to someone else ... they'll likely claim that they can only refund fees if it's a 'banking error'!

Would this fall into the category of 'banking error'?

Answer 1

Unless you have overdraft protection that is tied from your savings to your checking, meaning that if your checking account does not have the funds to cover a check/debit card transaction it will take money from your savings account to cover the amount...If you do not have that then yes, the bank is responsible for it.