Ram Man

Folks,ive put this on a while ago,ive put it back on due to the large number of new members,stay safe ram out.


Direct Deposit Warning
Many of you Im sure have a "Direct Deposit is a Condtion of Employment" clause in your contracts. While 9 out of 10 times this is a very convienent way for your family to have access to your money while you are away at work, it can turn into a nightmare.

Recently a coworker gave his 2 week notice to the company. The Company determined that he owed the company money. Without any legal judgement or court ordered garnishment of his wages, against the employee, the company used his direct deposit authorization to "Raid" his bank account for the sum that someone in Payroll dertermined that he owed the company.

Today I contacted my bank to ask if this was in fact possible, the below is my banks response:
"Giving your employer access to your account to directly deposit your payroll check does authorize them to withdraw funds, if needed. This will usually occur if there was a mistake in the amount that was credited to the account."
Bottom line is that to protect yourself and avoid a string of bounced checks that could affect your security clearance, have an account that only serves as a transit point for your paycheck. Transfer the funds out at 00:01 hrs on payday

rupert

Blindingly obvious but not the sort of thing most would be aware of I'm sure. Thanks RM...

FliesNest

Thank you for the heads up, i didnt know they could take out money too? I thought it was just a deposit only account?

Nomad

You could ask for a standing order instead of BACS transfer but I doubt any HR department would want to go down that route.

Personally I prefer used notes with non sequential serial numbers of small denomination. Wise words from Uncle Tom and thank god for visiting days for useful info

But seriously, good info for people. Well done that man

tank

Thanks Ram Man
Good to know that there is people like you. I didn't know they can take money out you account.
Tank

JPStevens

Many thanks for the info Ram. Like so many others, I had no idea that giving them rights to deposit also gave them rights to withdraw. Lets just hope the less than shiney white companies don't know either!

Have fun and be safe.

John

Beck

Good to know. Thanks.

covert munkey

Bloody hell!!

Excellent stuff RM.

I never had a clue about this!

CM

__________________
http://astore.amazon.co.uk/wwwcloseprote-21