Legal Question in Banking Law in Alabama

Federal credit union adding charges to a closed account, threatening a lawsuit.

In 1999 I assisted my 18yr old son in opening a checking account. I was on the account also. Within 6mo he closed this acct. In Oct 2002 he started writing checks on the closed acct.I also opened a savings acct for my 13yr old, and this acct is still active with a balance of approx 300.00. I received a letter from the CU (addressed to me)that the fees accumulated on the closed acct so far (for the checks that are being written) are over 400.00 and I must pay this amt or they are going to take the money from my younger sons savings acct, and sue me for the remaining amt due. Since the acct has been closed for 4 years,and my son (who is now 22yrs old) is the one writing the checks, can I be held responsible for these fees? Can they charge fees for returned checks on a closed acct? I thought that once an acct was closed, the ''contract'' with the bank is terminated. Also can they take money from my 13yr old's account? The letter stated they were giving me 7 days to pay, before they take the money from the 13yr old's savings acct, and pursue legal action against me. It also stated that this could adversely affect my credit.

Thanks for any assistance..


Asked on 4/09/03, 1:22 am

1 Answer from Attorneys
Robert Kreitlein Robert Kreitlein, Attorney at Law

Re: Federal credit union adding charges to a closed account, threatening a lawsu

Well, a credit union can legally take money from one account to satisfy debt on another. It's called a share lien and as long as you are on both accounts, they can do it. As for the closed account, what should have happened is for the CU to file a police report on the bad checks. You stated that your son closed the account and not you. Are you sure he closed that account? If he did not, they can still charge fees and they can hold you responsible since you are a joint owner on the account. I can give you more specific advice if I know more of the details. Email me or contact a local attorney to get some more help.

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Answered on 4/09/03, 10:38 am


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