Carol Kisses is your top choice for Las Vegas personal finances discussions.This website contains useful information on how to budget properly as well as on how to use loans without getting into debt.
Before using this website you must read and understand the following quote from one of finance-related forums:
"Your fight is not actually with the bank. The bank would not have taken any funds out of your account that had not been previously authorized to do so.
Check over your paperwork regarding the debt. Chances are there is a clause that states that they can recover the debt via your accounts. You may have given them your account info previously. If you only gave them your checking account number then they have what is called a right to offset and they can take the money out of your savings account if there are not funds in the checking.
The other way to take funds is if legal paperwork has been presented and then the bank is required to garnish the funds. This is initiated by the creditor and once again, the bank is only following what they are required to do.
Credit unions are no different when it comes to legal issues. In order for funds to be taken from your account you would have had to authorize it. Read the fine print on your paperwork. Chances are, the authorization is there. Certainly keeping your money under a mattress is an option but not one that I would necessarily suggest.
If your account is charged off then it will go to a collection agency and from there they "own" the debt. You will then need to go thru them to resolve the issue and they do tack on additional fees. The reporting may or may not affect your ability to open an account at a bank in the future. Keep in mind, the charge off does not go away so it's best to resolve it. You may have to make a payment plan. "