Legal Question in Banking Law in California

Is it legal for a bank to offset over 90% of the funds in a joint savings account in which only one of the two account holders is the owner of the debt?

Asked on 10/22/16, 2:59 pm

1 Answer from Attorneys

Timothy McCormick Haapala, Thompson & Abern, LLP

Yes. The rule on joint accounts is that any amount that the debtor could withdraw can be taken to satisfy the debt. On a joint bank account, either party could take out 100% of the funds. Therefore, a 905 set off is perfectly legal.

Read more
Answered on 10/24/16, 2:08 pm

Related Questions & Answers

More Banking Law questions and answers in California