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bankemployeehelp · Nov 18, 2006, 01:25 PM

OK so my friend works at a bank ( so do I , not hers luckly) and she quit. She gave notice, but then decided to quit a little sooner. The day she didn't go in they sent her a letter saying since she has a bal of 500$ on her od line of credit they were withdrawing ALL of her $ out of her checking account. Mind you the od line of credit was not late, and she only agreed to pay like 17$ a month, the payment wasn't even due for like 5 days. They just took ALL her $. Now she's going to get nsf charges and she's a single mom w no money now. Somehow I think this is iligal, I'm hoping one of you will know for sure. Also should she file a police report. And if you know this is illigal can you tell me what the law is that makes it illigal so she can state it to them. Thanks a bunch

Oh he wrote her a letter saying being that you quit , were removing your right to have the od line of credit ( since they called it an employee perk) but in the line of credit agreement it says if she has a bal if they terminate her right to have it, it would go to collections. And it doesn't even fall into any of the reasons for them to terminate it, she didn't break any rules. Its seems like a rash repercustion. Sorry I'm a bad speller. Help, thanks

walt17 · Nov 18, 2006, 01:51 PM

I suspect that when your friend quit, she terminated the line of credit agreement. Which means the rules are probably different than what you think. She needs to have a face to face discussion with a bank manager and ask them to explain the reasons for their actions. She can go to another branch if the she isn't on good terms where she worked.

bankemployeehelp · Nov 18, 2006, 02:11 PM

She didn't terminate her Line of credit. The bank did, because she quit. Then they took it upon themselves to take all her money. See what I am saying? She's def not on good terms if they would do something like that to her. She knows other employees who have quit who still have a line of credit open

Fr_Chuck · Nov 18, 2006, 03:20 PM

She needs to read all the paper work she signed, many items where you resign become due and payable, and if they have authority though a auto withdraw from her account, yes it could be.

But unless they had written authority to do so, no they can not.

She can demand to see the paper work that gave them that authority.

If they can't produce them, she should sue in small claims court for that amount and the amount of other damages it caused.

bankemployeehelp · Nov 18, 2006, 03:38 PM

Originally Posted by Fr_Chuck

She needs to read all the paper work she signed, many items where you resign become due and payable, and if they have authority though a auto withdraw from her account, yes it could be.

But unless they had written authority to do so, no they can not.

She can demand to see the paper work that gave them that authority.

If they can't produce them, she should sue in small claims court for that amount and the amount of other damages it caused.

Thanks so much! Yeah she didn't sign anything saying they could, in fact the form she has said that they would send it to collections if it was terminated, nothing allowing them to charge her account. They are just being mean because she left for better benefits at the bank I work for. I will go w her and we can ask them for where she agreed to it

walt17 · Nov 19, 2006, 09:17 AM

I agree with Fr_Chuck your friend needs to read and re-read everything.
However, in your original post you stated that the bank classed the line of credit as an employee perk. If that is the case when she quit she gave up the rights to the employee perk. Under those conditions what she signed or didn't sign doesn't matter. When she quit the line of credit went away. The rules governing employee perks may not have been spelled out in anything she signed, but they would still apply. Legal action may be appropriate. But she needs to clarify the perk issue first.

Curious13 · Jan 14, 2007, 11:28 AM

Walt is right. Employee discounts/perks are changed immediately after the employee leaves. At many places you can get a discount rate for loans, they day you leave, the loan rate goes up. I would imagine that this LOC works the same way. If the information she's looking for isn't in the terms of her agreement, try the employee manual. ALso, keep in mind, the bank is probably not going to do something illegal just to be mean, they are in the business of making money. NSF fees and terminating (possibly) unsecured LOC may be in their best interest.

Fr_Chuck · Jan 14, 2007, 11:36 AM

Also there is a fine line between oweing them the money and having it taken out of your last paycheck, than taking money out of a bank account, even in their own bank, the only way they can do it, is by having a signed document to allow automatic deductions and an agreement that upon termination this account becomes payable in full.

I would guess, that in some of the fine print it says they can do it.
But they have a legal obligation to show you those papers.

As you know banks are very heavy regulated as to banking laws,