Can a bank take money out of one of my accounts to cover an overdraft in another with out my permission?

Question

This account does not have "overdraft protection" and they charged me the overdraft fee sometime ago. I would think that if they could take money out of my account without some kind of written notice, that this would have to be clearly disclosed in the original contract.

Answer 1

Yes!  Thats a whole lot easier and cheaper then paying all the overdraft fees.

Answer 2

In Ireland, no.   But they make their millions by charging customers exorbitant fees as penalties for going overdraft.

Answer 3

I agree they can do this especially if the accounts are all at the same bank.  My recommendation would be to ask them to cancel overdraft in the future...most banks allow overdraft to a Visa too with no fees.

Answer 4

You probably gave permission when you signed up without knowing it.  That's why you should always read what you sign, even though someone tells you what it is about.

Answer 5

You gave permission for the bank to do this once you signed up for the accounts.  It's called "Overdraft Protection."  

So the answer is yes.

Answer 6

Nope unless you had overdraft protection. And usually you sign something when you opened the accounts that says if you overdraft on your checking take the money out of saving to cover it!!!

Answer 7

Only if you have over draft protection otherwise it would be kind of like stealing. The only thing they can do is put it on your credit and make it a lot hard to deposit money

Answer 8

More than likely, yes. When you opened the accounts their disclosures probably state than unless you opt out (in writing), they will use all of your accounts as overdrafts, or cross colateralization. . . . . Think of it this way, would you rather the item was returned, and you were charged a fee? This way, the money is just taken from your account, and you can replace it ASAP on your own time, but you weren't negatively impacted in any way via fees, or by a bounced check, returned payment, etc which can snow ball into so much more trouble! Ask to see their TIS disclosures. . .It's not really an "overdraft", as they probably did not charge a fee for this transaction. . . And if your account is negative for an extended period of time, they will ALWAYS go to collect their money, regardless.

Answer 9

Depends on the bank and the contract you signed. Usually if it is in the red for a long time, they are allowed to. If they did it immediately, and you didn't sign up for overdraft protection, just make sure they did not charge you an overdraft fee.

Note that you cannot leave your account in the red for six months, and expect the bank to leave your other accounts alone.