Is it legal for a bank to take back money from the last 2-3 months of bills you paid with check cards?

I was charged an overdraft fee which cause a bunch of other stuff to bounce incurring MORE overdraft fee's then I was in over my head because the total debt to the bank was over $1000 of which I could never pay back. I stopped depositing money into the account so I could pay my bills, eventually opening a new account at a new bank. Well a couple months later my monthly bills had balances off hundreds of $ looking at the bills I could see that the bank I o'ed fee$ took back like 2-4 months of payments I paid to my bills to cover there od fees! One of my credit cards didnt even warn me they just sent a letter that said you r now in collections you o the amount in FULL. this bank f**ked my life! Is it legal to take back visa purchases to cover OD fee's??

There reason i owed the bank $1000 was because of the continuous fee's of $34 each. My bank account originally started encoring fees when the direct deposit company was late and the bank put my bill withdrawals threw FIRST of course so that cost me $300 in fee's. I called the bank and explained that it wasn't my fault the funds were 2 days late and my bills went threw first BUT, I am pay check to pay check, I dont have $300 to give the bank for fee's so everything else is going to bounce as well. The bank said too bad so I said later thats how I ended up oweing the bank.

If I am understanding this, you owed the bank $1,000 and they then (Two months later) took back payments that you had already made? I don't think they can do that without some sort of legal approval. Once a payment is made and let out of your bank account, then bank does not have anything to do with it again, so I don't understand how they could have taken back payments months later...I would talk to a lawyer about this.

Your account was $1000 in the negative and you stopped giving the bank the money you owed them? Then "without warning" they took you into collections??!??!
I doubt that. And, YES, a bank can do what they can to get money owed.

*EDIT*
So you paid bills and stuff ASSUMING the money was in there.
*EDIT*
you are right, it's NOT check kiting.. it's called FLOATING CHECKS.

63263521

If you have another account with that bank, and you owe them money usually after 45-60 days the bank does have the right of offset which means they can offset any other funds that you may have available in other accounts.

Another lesson learned. Never have an account that is dependant on a deposit arriving at a certain time.


You should keep money at least equal to one months salary extra in your account as a cushion against late deposits or emergency bills. If you had done that, none of this would have happened.

I feel for you, you are having money troubles and EVERYONE has at some point I don't know why people feel the need to lecture.

I would call the bank and find out why they did this and if you can work out a payment plan to pay back the overdrafts & next call the cc and see if you can settle the amount since its in collections now.

If the payments went through first that means you made them without having the funds in the bank. you where relying on a delay in processing in other words Check Kiting which is illegal. Yes you opened up a new account but the fees continue to rise because of your none payment and if they are in the Chex systems, soon your new bank will find out,and they will request that you close their account because they do not want to be in the same situation that you put your other bank in. Then because you have reached the limit of being listed as grand larceny you will be pursued by the former bank legally and most likely a warrant issued for you arrest, hey check your credit report most likely trashed by now. They will most likely take you to court for the fees and unlike other items a judgment will remain on your credit report for 10 years instead of 7 and yes your wages, and tax returns can be garnished.. Not to mention if they did take back payments what the other companies will do or file. Should of just talked in person with the bank and worked things out, now you are basically SOL. Hang on this roller coaster is just starting its decline.