Customer Says Bank of America Took Money From His Account to Cover Daughter's Overdraft

If you have someone named on your bank account to help you in times of need you'll want to hear this. 7 On Your Side met a man who says his savings account was wiped out when his daughter's checking account was overdrawn.

By: Dianne Derby | WSPA-TV
Published: July 06, 2009

Tony Buckmaster loves taking rides on his dune buggy but he says his bank is taking him on the ride of his life.

"I realized my savings account had nothing in it," he said.

Buckmaster said Bank of America took more than $370 from his savings account to pay for his daughter's overdraft protection on an account she has with her husband.

"That's not right," said Buckmaster. "I can't control that account nor did I know that they were overdrafted to begin with."

Bank of America wouldn't comment about this specific complaint but they did say right of offset is common in the banking industry and is part of the deposit agreement. They said they can use it in the collections process.

"When you add someone to your account what you are doing in reality is saying they have as much right to my account as I do," said Better Business Bureau's Kathy Barrett.

Barrett said Buckmaster's complaint is common and tough to resolve. She said the real key is to educate yourself about the terms and conditions before adding someone to your account.

"If you are reading a contract you don't understand don't be forced into it quickly, ask for a copy of it, go to someone that can help you interpret what it means and find out what it means before you sign it," Barrett said.

Barrett said one way to be safe is to add someone as a "POD" (payable on death). That way nothing can happen to the account unless a death occurs.

"Now I realize that you really gotta be careful of who you put on there," said Buckmaster. "It could wipe your savings, your checking, it could just wipe it clean out."

It's a tough lesson for Buckmaster who only hopes others don't choose to travel the same bumpy road he has.

The Better Business Bureau also wants you to know that "right of offset", withdrawing funds to cover a debt owed to the bank, is limited by federal law. It won't allow a bank to take money from your deposit account to pay off your credit card accounts.

If you have a complaint about your bank you can call the Office of the Comptroller of the Currency at 1-800-613-6743 or click here for a link to the complaint form.