Can they take money out of my checking to pay overdraft protection?

Question

I bank at BB & T. I am into my overdraft protection (not by much, a couple hundred), which I am paying back on time every month.

My question is, if BB&T fails like IndyMac did, will they take what I owe them out of my checking account with no warning? Or do they have to give me a chance to pay it back, and go through the normal process to garnish the money?

Answer 1

They can take it.

Answer 2

Anna, what does the bank say? It is usually depends on the bank policy whether they can deduct from your checking account, especially if there is only a minimum amount in the account. The other way to get warning is from the monthly bank statements, it is listed what you owe.

Spartawo...

Answer 3

They can do whatever is in the contract you have with them says.  Read it.  If it's vague, ask them.

If you are really concerned about them going belly up, move your money to someone you trust.

Answer 4

If you are into your overdraft that means you already have nothing in checking. Now if you mean from another checking at the same bank then yes. If you mean from another checking at a different bank no. However your account at another bank may be closed due to being put on chex systems.