Bank Authorized Debit To Pay Of Recovery Account

[MARYMEF]

What is the name of your state? PENNSYLVANIA


MY BANK MADE A DEBIT TO MY ACCOUNT TO PAY FOR A RECOVERY ACCOUNT. I HAVE ONLY ONE ACCOUNT. REPRESENTATIVE SAID THIS MATTER WOULD BE CHECKED OUT AND WILL CONTACT ME WITH IN A DAY.

DOES A BANK HAVE THE AUTHORITY TO REMOVE FUNDS FROM YOUR ACCOUNT TO MAKE PAYMENT ON ANOTHER ACCOUNT?

DOES THE BANK HAVE THE AUTHORITY TO DEBIT YOUR ACCOUNT AND CREDIT THE FUNDS TO A RECOVERY ACCOUNT THAT DOESN'T BELONG TO YOU?

WAS I SUPPOSED TO RECEIVE A NOTICE OR TELEPHONE CALL CONCERNING THE DEBIT?

HELP............

UPDATE: COLLECTION AGENCY USED BY BANK SAID RECOVERY ACCOUNT (STUDENT LOAN) IN MALE'S NAME IN SOUTH CAROLINA AND I AM NOT NAMED ON ACCOUNT. BANK SAYS I COSIGNED FOR LOAN IN 1998. I INFORMED BANK AND COLLECTION AGENCY THAT I DID NOT COSIGN AND DON'T KNOW THIS PERSON. I REQUESTED A COPY OF THE ACCOUNT INFO AND MY SIGNATURE. BANK DOES NOT HAVE SIGNATURE ON RECORD ONLY HAVE INFO IN COMPUTER. BANK INSISTS THAT THIS IS MY DEBT AND HAD THE RIGHT TO REMOVE THE FUNDS FROM MY ACCOUNT.

 

[Ladynred]

If you had 2 accounts and one was overdrawn for a period of time, they can and will take from one to cover the overdraft, it happened to my fiance. However, he DID have 2 accounts, so it wasn't suspicious. They did try to call him about the account, but he was on the road so much he never did talk to them, so they just took the money.

Since you say you only have the 1 account, then I'd say somebody screwed up royally. If they screwed up, they should put the money back.

 

[bigun]

Your post is a bit unclear. When you say recovery account, do you mean you have a loan or cc card account with this bank that is in default? If so, they executed what is known as an "offset" and yes, it is legal. Look at the loan agreement and the agreement you signed to open the deposit account. I'll bet there is language there that gives them this right.
If the recovery account isn't yours, they should reverse the transaction.