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Helen R. Madison

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catloverjean

Junior Member
What is the name of your state (only U.S. law)? Georgia What is the status of Social Security with Direct Deposit and NSF fees?:D
 


Antigone*

Senior Member
What is the name of your state (only U.S. law)? Georgia What is the status of Social Security with Direct Deposit and NSF fees?:D
This is out of the 9th Circuit.

The Lopez v. Washington Mutual Bank, FA case was reversed.

Here is what the court stated: "In this case, the plaintiffs voluntarily opened an account with the bank and executed an account holder agreement which outlined the terms and conditions of the bank's overdraft policies. They also established a direct deposit for their benefits (an agreement to which Washington Mutual was not a party). The plaintiffs remained free at all times to close their account or change their direct deposit instructions. Because they did not do so, Washington Mutual argues, each deposit to the account after an overdraft should be treated as a voluntary payment of a debt incurred. We agree."

As I understand the decision, and please lawyers correct me if I am wrong. It is legal for a bank to cover overdraft and NSF fees using funds from SSI and Social Security.

Hope this helps, take care, ana

I have personally always told my clients, and especially their kids (after educating them on the use of a check register), that if the latte they drank at Starbucks cost them $40.00 but they have no one to blame but themselves.:D:D:D
 

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