Q: Can the bank keep money used to cover a check from another account even if the check never went through?
I had paid my utility bill using my personal account, and didn't realize that I didn't have the full sum in that account. When the check began to process, the bank pulled money from my joint account with my husband to cover the amount that was overdrawn in my personal one. The amount in my joint account was not enough to cover the full amount overdrawn in my personal one, and the bank closed my personal account shortly thereafter. The utility website said the check went through before the account was closed. About a month later, I was told the payment was returned for the utility, and I still owed the utility company that amount. The money pulled from my joint account to cover this check that never went through was never returned to my personal account. Is the bank at fault for this, or is the utility company at fault for accepting the payment, then rejecting it a month later? Is the entity responsible legally required to return that money?
A: Have a lawyer review the transaction carefully. Your details are a bit vague. Your banking terms and conditions should clarify your questions. Similarly your agreement with the utility company should also be reviewed. More details are necessary to provide a professional analysis of your issue. The best first step is an Initial Consultation with an Attorney. You can read more about me, my credentials, awards, honors, testimonials, and media appearances/ publications on my law practice website. I practice law in CA, NY, MA, and DC in the following areas of law: Business & Contracts, Criminal Defense, Divorce & Child Custody, and Education Law. This answer does not constitute legal advice; make any predictions, guarantees, or warranties; or create any Attorney-Client relationship.
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