Does my bank have the right to take money out of one account and put it into another account that was in the negative without authorization from me?
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Does my bank have the right to take money out of one account and put it into another account that was in the negative without authorization from me?
My business had a negative in my payroll because I
had paid my employees it was negative about 1000
we went to take our money out of the bank account
this morning and the bank took it upon themselves to
transfer my money from my business my business
checking account into the business payroll to settle
the negativity is that allowed
Asked on October 30, 2018 under Business Law, New Hampshire
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
If you have an agreement (e.g. one of your banking or account agreements) with the bank which states that when there is a shortfall in one of your accounts, they may transfer money from another of your accounts to cover it, then this would be legal: in this instance, you contractually agreed to allow them to do this.
In the absence of an agreement authorizing it, it would be legal. They have no power over the disposition of your accounts other than that (if any) given to them contractually.
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