Question & Answer

Question: We're stuck with a rather large overdraft on a checking account, and there is a dispute between our customer and the fellow who gave him the check that our customer deposited, which was then returned for NSF, causing the overdraft. So our customer refuses to make good. He has a large savings account with us also. Can we make good by taking the money out of the savings?

Answer: Yes, you can - as long as the name and social security number on both accounts are the same. You have the right to make yourself whole (right of offset) by charging any other account belonging to the customer. (I'd think twice, however, before breaking into CD funds, where charging the overdraft could cause a penalty.)

Copyright © 1999 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 9, No. 4, 5/99