Q: can a bank keep my social security EFT deposit to offset a cashiers check that bounced ?
cashiers check was payment for item I sold - I deposited the check in my checking acoount and after 5days I withdrew the amount which was more than my social security amount .....then bank cancelled my account
A:
In the United States, banks have certain rights to offset debts with funds in your account, but there are specific rules about what types of deposits can be used. Social Security benefits are generally protected from garnishment, except in cases of child support, alimony, or unpaid federal taxes. When a cashier's check you deposited bounces, the bank can recover the amount from your account, but they typically can't use Social Security funds for this purpose.
However, if Social Security funds are commingled with other funds in your account, it might become complicated to differentiate them. It's advisable to keep Social Security benefits in a separate account or clearly identify these funds to avoid such issues. If you believe your rights have been violated, you should consider contacting an attorney who can provide guidance specific to your situation and possibly the Consumer Financial Protection Bureau for assistance. Remember, each situation can have unique aspects, so a thorough review of your specific circumstances is essential.
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