i owe a bank 800 for overdrafting and now they want to take me to court?
Not directly. The bank would have to get a judgment first and then a writ to attach your money.
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Taking a refund before you receive it can only be done by a governmental agency like a child support office or the IRS. Otherwise, the bank would need a judgment. If you have an overdraft protection account and have the funds deposited into another account at that institution, however, the bank may be able to take the funds without a judgment if they have a cross-collateralization clause in their account paperwork. Of course, that is the law in Arizona. I am not admitted in MI, so I would confirm my suspicions with an attorney in MI.
They would have to sue you and win a judgment before they can collect. However, if your bank account has a negative balance and you have your tax refund direct deposited into that account, you can consider that money gone.
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