Offset Corporate Account Owner's Personal Account

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Question:

Do we have the right of offset to collect monies owed from a corporate checking account which was overdrawn for 45 days due to fees? The customer promised to come in and pay up but never did and we have since closed the account. Can we collect fees owed from his personal checking account? He was the only owner on the corporate account.

Answer:

Not unless he personally guaranteed the deposit account. The corporate entity is a totally separate entity from the individual. People form corporations to protect their personal assets.

First published on BankersOnline.com 10/13/08