Jim
Anaheim,#2
Fri, August 14, 2009
When you setup an account with anyone, you're liable for that person's debts as well; it's a function of the law, not the bank. You asked a banker a legal question and the banker isn't liable for the incorrect answer. It's sort of like asking your lawyer a question about your finances - he might give you an answer, but it may not be the correct one for you.
Since this is a LEGAL function, this would happen at your CU too. There are other ways of passing this money to your son only in case of your death - you don't have to add your son to the account. Talk to a lawyer specializing is wills and trusts. Do not talk to anyone at the bank or the CU about this.
Cory
San Antonio,#3
Fri, August 14, 2009
Whoever suggested you put a child ON your account, gave you some bad advice as you have well found out. What you should have done is listed a child or children as a beneficiary in the event of your death. Upon your death, they could have taken the certificate to the bank and withdrawn the funds out. From the sound of it, I sure wouldn't use that son. Contact an attorney for some planning.
Adr123
city land,#4
Fri, August 14, 2009
Why is your grown son asking you for money?
Adr123
city land,#5
Fri, August 14, 2009
Almost forgot... Banks will not use "Right to set off" immediately after the other account is negative. Normally it takes anywhere from 17-60 days for the other account to be negative before "Right to set off" will come into play. This means that your son knew he was negative in his account for at least 2 weeks and did nothing about it. You are completely right about reading your documents and saving them. You should take your own advise.
Adr123
city land,#6
Fri, August 14, 2009
It's called "Right to set off". you should look it up in the disclosures that were provided to you when you opened your account. You should never take someone's verbal guarantee on anything. A verbal guarantee will not stand up in court, especially when it's clearly stated in writing in your disclosures.
Really you should be mad at your son and ask him for the money he owes you since he's the one who incurred this debt. All banks have this clause to protect them from people who are going to try to rip them off. In the future you might not want to open an account with irresponsible people.
Edgeman
Chico,#7Consumer Comment
Sun, August 02, 2009
All banks have a clause that is known as the "Right to Offset" or some similar language. Put briefly, it means that if one account has a negative balance, the bank can transfer the money from another account that the owner has. When you put your son on your account, the money was (legally speaking) his as well. The bank simply took "his" money and used it to offset his "other" account. I don't like this clause because it has the potential to punish people for the irresponsibility of others.