Can a bank keep an entire social security disability check for a negative balance?

Asked over 2 years ago - Frankston, TX

a check was deposited into my account the one who made the deposit changed her mind and cancelled the transaction after i had withdrawn the funds. now the bank is keeping my entire check and will not release any money. this is keeping me from getting medication including insulin that i need to live. I would be willing to allow them to keep a little but i need to live.

Attorney answers (2)

  1. Dorothy G Bunce

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . When a check deposited into a bank account is "dishonored," the bank gets nothing and must offset the amount of the check from the account. This is a standard term of you having a bank account, and since this term is contractual, the fact that other money in the account was from social security may not matter.

    The bank is not keeping anything - they are simply offsetting from your account for a deposit that never really existed.

    Hope this perspective helps!

  2. Clifford Michael Farrell

    Contributor Level 19

    2

    Lawyers agree

    1

    Answered . It is important to keep Social Security money separate from other money, even if it means opening another account. Once you put different money from different sources in one account, the money loses any protected status because the money is all commingled and the courts say that means you cannot tell which money is from what source.

    If you keep the money separate, it is a hassle, but it means the social security benefits are more protected.

    Good luck to you.

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