I was trying to discuss something with a friend of mine and I couldn't even remember the term for what I was trying to talk about.
If you have more than one account with a bank that was opened using the same name and/or SS number, they can draft funds from one account to cover fees due to them on the other one. Lets say you have a savings account and a checking account and you let the checking account remain overdrafted for an extended period of time. They can, and will, take the funds from your savings account to pay the fees. (this has nothing to do with overdraft protection) They do not need your permission to do this since you agreed to it when you opened the account(s).
There is a term for this and it's on the tip of my tongue. I want to say that it is "Right to..." or "Right of..." something.
My next question is how far does that right extend? If you have an auto loan or mortgage with that bank do they have the same right to take funds from your account to pay those loans? (i.e. the payment is overdue but the money is in your checking/savings account)
If I knew the term from the first question I could Google the second.
If you have more than one account with a bank that was opened using the same name and/or SS number, they can draft funds from one account to cover fees due to them on the other one. Lets say you have a savings account and a checking account and you let the checking account remain overdrafted for an extended period of time. They can, and will, take the funds from your savings account to pay the fees. (this has nothing to do with overdraft protection) They do not need your permission to do this since you agreed to it when you opened the account(s).
There is a term for this and it's on the tip of my tongue. I want to say that it is "Right to..." or "Right of..." something.
My next question is how far does that right extend? If you have an auto loan or mortgage with that bank do they have the same right to take funds from your account to pay those loans? (i.e. the payment is overdue but the money is in your checking/savings account)
If I knew the term from the first question I could Google the second.
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