Canmy credit union just take money out of my account and leave me in a negative balance without consent?

UPDATED: Oct 18, 2011

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Canmy credit union just take money out of my account and leave me in a negative balance without consent?

I received a phone call from my credit union yesterday afternoon. They said that one of my bills was being paid electronically from another member’s account by mistake, over a period of two years. I have most of my bill pay on-line, and I have two bi-weekly payments going to the biller in question. I receive statements that the bill is being paid, and I check my balances often on-line, so I did not see anything suspect(for two years). They said that I would have to pay it back, and I said of course, if that was the case, we would fix it. Shouldn’t they call the biller to see what happened?

Asked on October 18, 2011 under Bankruptcy Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Whether or not your credit union can have money withdrawn form your bank account depend upon whether or not you gave the credit union written authority to do so through signed and dated documents by yourself through your bank which is on file with it.

If you signed documentation allowing this withdrawal from your credit union and it is on file with your bank, then the credit union had every right to withdraw money from the account even if it left you with a negative amount.

If there is no written authority by you to allow money to be withdrawn from your bank account by your credit union, then what it did was improper.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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