Bank Withheld Funds Of Check Special Endorsed To Me For Others Debt ?????

I hold an account with Woodforest National Bank. (Clayton)

A payroll check Made out to (Connie) was Special Endorsed "Pay to the Order of Clayton) and upon attempt to Deposit the check into my bank account (Clayton's Account) at Woodforest National Bank ... the bank took the check in its entire amount and instead of depositing it into my account they applied it to a balance on a charged off account they say Connie owed to them.

My question is .... if a check is special endorsed "Pay to the order of and signed by the person that the check was originally made out to, at what point does the person it was special endorsed to have any say so or claim to that money. Was It my money at the time that they took it for her debt since it was endorsed over to me?????

I dont know if this is helpful but, we are not married, nor do we share an account.

Please help with some advise. Your knowledge is greatly appreciated!

You raise a good question and I'm afraid I don't know the answer to it off hand. You can ask a lawyer about it. They can read the find print in the bank's regulations and try to give you an clearer answer. However, I think such an answer will only satisfy your intellectual curiosity, not your practical needs.

Banks, like other major institutions, can usually dictate the terms of how they operate with their account holders (subject, of course, to general federal guidelines designed to prevent fraud or abuse). You can complain to the bank, and maybe you can get them to give you the money. Maybe you can't. (Banks can be very difficult. See the previous discussion on this forum about complaints about Wells Fargo Bank.) If you can't, you can sue the bank if you think you are right, but it probably will not be worth it. (You'll definitely need to pay for a good litigation attorney to fight something like this.)

So the short answer is: complain to the bank, live with the consequences unless the amount in question is so large that it is worth engaging a litigation attorney to fight your your rights.

Good luck!