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  1. #1
    Join Date
    Mar 2006
    Location
    east, USA
    Posts
    48

    Default Bank Took My Mother's Social Security Money for My Sister's Debt, Joint Account

    My question involves collection proceedings in the State of: PA

    My mother has a checking account with my sister's . name on it, as well. She opened this account, years ago. My sister opened an account at the same bank a few years ago. My sister had an overdraft with this bank and started another account to repay the overdraft. My sister told us that she closed her account, as it was supposedly getting confused with my mother's account. Also, I tried to convince my mother to close the account with my sister's name on it and open a new account without her on it. Unfortunately, she never did. And, my sister never really closed her account and negated the repayment plan.

    The bank then went and wiped out the $500 balance in my mother's account to pay my sister's debt. She gets her SS check via direct deposit. The bank closed my mother's account on 11/1/10. I called the bank, and asked if I could make a special deposit just to pay my mother's outstanding checks. They told me they would re-open her account and pay the checks that went to the bank, yesterday. Also, would re-submit for SS check to be deposited into her account. I was told to bring my mother to bank today, withdraw her SS check and open a new account. I was told that her SS check would be available to her, today.

    This morning, we learned that they paid off all of my sister's debt with my mother's SS check. Her check was for $1233. My mother had a balance of $136. afterwards. If this account had not been re-opened the bank would not have had access to my mother's check. I should have left well enough alone. I actually cost my mother more money by trying to help her. After much protest, the bank agreed to give her $557. back to her account. They assured us that they were done touching my mother's account and advised her to close it after she receives her next SS deposit.

    I understand that it was legal for them to take the money from my mom's account, as my sister's name was on it. However, I was shocked to learn they were allowed to take all of her check. This is what she lives on. And, the account was closed on 11/1/10; however, my big mouth got it re-opened. I was told that she would have access to her SS check, otherwise I would have never re-opened it. I felt that we were deceived into re-opening the account, so they can get more money from her. I guess that we should be thankful that they awarded her back some of the money. They called this a forced re-open. Was this legal, after they told me that she would be able to get all of her check?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Bank Took My Mother's Social Security Money for My Sister's Debt, Joint Account

    The bank's computer sees money in a joint account. The bank's computer says, "Ah, here's some money we can take to satisfy the debt of the joint account holder." The bank's computer takes the money out. Money in a joint account is presumed to be equally the property of both account holders. The bank cannot reasonably be expected to trace where money comes from.

    How about asking your sister to pay mom back?

  3. #3
    Join Date
    Mar 2006
    Location
    east, USA
    Posts
    48

    Default Re: Bank Took My Mother's Social Security Money for My Sister's Debt, Joint Account

    I am just upset with myself because the account was already closed. I asked to if I could set up some type of deposit for her outstanding checks to be paid. Then they told me they would re-open the account and pay the checks. They told me that she should get her SS the next am; however, it was gone by the time we got there. If I would have let things alone, they would not have gone after my mom's account, again, as it was already closed.

    I informed my sister of what she owes my mother. However, I don't see that happening. She will start to pay some of it. She already owes my mother money, already. So, she will never really get paid back. I screwed things up more for my mom. Oh well, at least they gave some of the money back.

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