Jump to content

Safe Deposit Box-denial


energizer
 Share

Recommended Posts

i just found out today that a Texas credit Union Bank where i had opened a Safe Deposit Box Account in conjunction with my Checking/Savings Account at credit Union denied me access to my safe deposit box.

 

I opened my account with this Credit Uniion bank in Feb 2012. 2 months later a safe deposit box account was opened in April 2013.; Three months after account opening i defaulted by withdrawal from an ATM. I owe $425 for bringing the account current, however a safe deposit box account was opened and paid for the full year.

 

Upon renewal for the safe deposit box, an auto debit from my checking account was attempted. That attempt to withdraw failed and they were unable to withdraw money becoz the account was closed for default.

 

I go into the bank today to renew my safe deposit box account. They have told me that i have to pay them $425 first if i want access to my safe deposit box.

 

It is my understanding that safe deposit box account is current upto April 30th, 2013. Now, they are saying if you want to have access to the safe deposit box then i have to bring the $425 collection amount and pay it to get access to my safe deposit box?

 

I have stuff in my safe deposit box i need to get out & be done. I am in Texas.

 

What are the consequences of not paying the $425. Will i have lost my stuff that was in my Safe Deposit Box? can i sue the credit union Bank for this.?????

 

Please help. I dont really wanna loose my stuff in the safe deposit box.

 

Link to comment
Share on other sites

banks right to offset/setoff? i am thinking of filing a complaint with OCC and/or federalreserve!!!!!!!.

 

Its my understanding if they are to do an offset, that you have to be notified of the offset!!!!!!!!. If they have to drill in the safe deposit box they have to notify me!!!!!.

 

I have received no such notice!!!!

Link to comment
Share on other sites

banks right to offset/setoff? i am thinking of filing a complaint with OCC and/or federalreserve!!!!!!!.

 

Its my understanding if they are to do an offset, that you have to be notified of the offset!!!!!!!!. If they have to drill in the safe deposit box they have to notify me!!!!!.

 

I have received no such notice!!!!

 

NO.  Go back and read your account agreement on the checking and safe deposit box.  There is clear language in there that states if ALL your accounts are not in good standing they can restrict access to your SDB.  Until you bring it current they have no obligation to give you access even though it is paid in advance.

 

Go back and read the notices they sent you regarding the over draft it likely has the notices on there as well.

 

If you do not cure the overdraft the bank must send you a certified letter stating you have 30 days from X date to cure the amount and if not done then they will drill into the box on Y date.  If you fail to respond to the certified letter and/or cure the overdraft then on the 31st day they can drill into the box in the presence of two witnesses one of which must be a bank officer.  The contents are removed and they must hold them for one year.  After a year has passed they may sell them according to state law on abandoned property and apply any amount to your overdraft and the rest is turned over to the state's unclaimed funds with the state treasury.

 

Since you said the box is paid through the end of this month they cannot send the certified letter of intent to open until May 1st.  Then 30 days after that on May 31, 2013 is the soonest they could possibly drill into it if you haven't paid or responded.

  • Like 2
Link to comment
Share on other sites

NO.  Go back and read your account agreement on the checking and safe deposit box.  There is clear language in there that states if ALL your accounts are not in good standing they can restrict access to your SDB.  Until you bring it current they have no obligation to give you access even though it is paid in advance.

 

Go back and read the notices they sent you regarding the over draft it likely has the notices on there as well.

 

If you do not cure the overdraft the bank must send you a certified letter stating you have 30 days from X date to cure the amount and if not done then they will drill into the box on Y date.  If you fail to respond to the certified letter and/or cure the overdraft then on the 31st day they can drill into the box in the presence of two witnesses one of which must be a bank officer.  The contents are removed and they must hold them for one year.  After a year has passed they may sell them according to state law on abandoned property and apply any amount to your overdraft and the rest is turned over to the state's unclaimed funds with the state treasury.

 

Since you said the box is paid through the end of this month they cannot send the certified letter of intent to open until May 1st.  Then 30 days after that on May 31, 2013 is the soonest they could possibly drill into it if you haven't paid or responded.

 

So a wise man would never open more than one account at the bank? I am sure they have that language in their agreement somewhere? It is why they feel so confident in it. Can a settlement for lower than that amount be reached with them?

Link to comment
Share on other sites

So a wise man would never open more than one account at the bank? 

 

Maybe.  Depends on how solid your finances are.  However, I do NOT keep credit cards at the bank where I have my checking/savings so that I do not have to worry about offset.  Same is said about mortgages.  Keep your checking account at a different bank than your lender.

 

 I am sure they have that language in their agreement somewhere?

 

What language?  The right to set off?  That is in EVERY banking agreement.  

 

 It is why they feel so confident in it. Can a settlement for lower than that amount be reached with them?

 

That is up to them.  Given that they have your safe deposit box and can withhold the contents or sue you outright I doubt they will settle but it can't hurt to try.

 

A complaint is filed with the CFPB today. Remains to be seen what happens?

 

I doubt seriously they will get involved since the bank has not broken any laws no matter how wrong you think it is.

  • Like 1
Link to comment
Share on other sites

Maybe.  Depends on how solid your finances are.  However, I do NOT keep credit cards at the bank where I have my checking/savings so that I do not have to worry about offset.  Same is said about mortgages.  Keep your checking account at a different bank than your lender.

 

 

What language?  The right to set off?  That is in EVERY banking agreement.  

 

 

That is up to them.  Given that they have your safe deposit box and can withhold the contents or sue you outright I doubt they will settle but it can't hurt to try.

 

 

I doubt seriously they will get involved since the bank has not broken any laws no matter how wrong you think it is.

They will have to get involved? u c if you c it from a MEDIA PERSPECTIVE, what they r telling you is that anyone who opens a checking account at our bank is under a " all accounts" agreement wherein if you had a checking or CD or a Savings Acct or a safe deposit box, if u defaulted on anyone of those you will be required to come up with the default amount to recover any and all available cash &/or money available in your other accounts at the same bank!!!!! Its in the agreement right? yes it is? If consumer is scared of opening anymore than one account with any bank, there is no way a BANK  can survive. Most retirees today carry atleast 2+ accounts (checking/savings/cd/moneymarket/safedepositbox/investment) accounts with one bank!!!!!!!.Now if we were to think that a NCUA v/s an FDIC bank had different regulations to follow, I think CFPB was created just for that reason!!!!!!!. if you screw the consumer, the consumer loses confidence in the banking division and find themselves insecure in their investments at the bank. there is this ugly sentiment already prevalent in consumers that banks charge more but never pay consumers more than the market interest rate, so a consumer were to open a new checking/saving/CD account there has to be a serious incentive to lure them into opening an account. Once an account is opened no one I know of reads all the fine print ever in the terms and conditions of the agreement. Until one begins a complaint with OCC or CFPB or Federal reserve no consumer is ever protected from the atrocities the bank bestows on consumers. 

I am in the mood of pursuing this matter to the maximum. I do really mean that. It tells consumers, if you ever ever open an account at a bank what in essence you are saying is if you the consumer ever really try to screw with me (the bank) I will leave you with no alternative but to pay me for what I demand or else?????? 

since when exactly did we ever become COMMUNISTS.

I also know that my account was in collections by a third party JDB/CA and I have requested validation? does anyone know if it means anything? I am not sure. I would so much appreciate a lawyers perspective on the legalese of this matter?

 

I also cant wait to hear a response to my complaint filed with CFPB? I think it will be interesting? I guess the worst that can happen is that I end up having to pay $425 due them, or I can pursue a whole different path and c what else I might be able to do legally.  

 

IMHO holding a consumer's access to his fully paid SDB acct for default on his checking account IS JUST absurd. Why would any consumer ever trust a bank to hold their most valuable possessions  in a safe deposit box only to live in this fear that if he would ever default on any of his other accounts (checking/savings/CD/moneymarket/investment). **** happens, people die not knowing what happened? sudden and dangerous situation happens to anyone and everyone!!!!!!. If the bank would not have the capacity to allow access just becoz he is unable to come up with the defaulted amount is IMHO very DANGEROUS PRECEDENT!!!!!!! 

Link to comment
Share on other sites

Clydesmom, I so thoroughly understand what you are saying and I so completely believe you may as well be in every word right in your explanation regarding my situation. I may actually have no re-course in this matter, but I am so pissed off at this idea that they can hold me back on an account that is paid in full for the whole year. I am learning a lesson here not to have "ALL EGGS IN ONE BASKET" its just simply DANGEROUS.

I think I know the worst that can happen is I will have to come up with $425 to payoff but before that happens (before May 31st, 2013) I so much feel I want to be able to pursue all avenues possible and available and c what might come from it. Its surrendering to the policy of the bank if I am to give them their $425 right away. its a whole different thing if I work to find who may be able to find legal avenues to not have to succumb to such pressure from banks and see if you can ever ever make them see it your way n get away with having access to the SDB and have your contents removed and then

let them continue collection activities. There has to be a way!!!!

All remains to b seen? wish me LUCK!!!!! I M GOING 2 NEED IT.

Link to comment
Share on other sites

They will have to get involved? u c if you c it from a MEDIA PERSPECTIVE, what they r telling you is that anyone who opens a checking account at our bank is under a " all accounts" agreement

 

Its in the agreement right? yes it is? If consumer is scared of opening anymore than one account with any bank, there is no way a BANK  can survive. Most retirees today carry atleast 2+ accounts (checking/savings/cd/moneymarket/safedepositbox/investment) accounts with one bank!!!!!!!.

 

The CFPB will send an inquiry to the bank.  The bank will inform them that you opened a new account and then over drew it by $425 and they exercised their right to set off on the one account in good standing:  your safe deposit box.  

 

That will be the end of it.  The CFPB will then inform you that the investigation is complete and there is no action for them to take as the bank legally exercised their rights under the account agreement you signed when you opened all accounts.  That will be the extent of their "involvement." 

 

 Once an account is opened no one I know of reads all the fine print ever in the terms and conditions of the agreement. Until one begins a complaint with OCC or CFPB or Federal reserve no consumer is ever protected from the atrocities the bank bestows on consumers. 

 

You just described the big problem and it isn't with the creditors.  >90% of all consumers fail to read what they are agreeing to when they sign it and only when the provisions of the contract bite them in the behind do they bother. 

 

The problem you have is only you believe it is an atrocity.  You are angry because you can't get your way and just now realized what a full account agreement with a bank entails.  

 

I am in the mood of pursuing this matter to the maximum. I do really mean that. It tells consumers, if you ever ever open an account at a bank what in essence you are saying is if you the consumer ever really try to screw with me (the bank) I will leave you with no alternative but to pay me for what I demand or else?????? 

since when exactly did we ever become COMMUNISTS.

 

You can pursue it all you want but the reality is the bank isn't breaking the law which limits your remedies.  

 

You have a problem with creditors stating we agree to loan you money or grant you credit but will pursue you if you default?  Well then you need to live a cash existence because you do not have a right to default on the agreement you made.  When you opened the accounts you agreed to keep them in good standing.  You didn't do that.

 

Communists?  Really?  Then you truly do not understand communism.  

 

I also know that my account was in collections by a third party JDB/CA and I have requested validation? does anyone know if it means anything? I am not sure. I would so much appreciate a lawyers perspective on the legalese of this matter?

 

Nothing prevents the bank from turning the checking account over draft over to a collection agency and exercising their right to off set at the same time.  I don't believe it means a thing.

 

If you want a lawyer's opinion you will need to consult one in your state.

 

I also cant wait to hear a response to my complaint filed with CFPB? I think it will be interesting? I guess the worst that can happen is that I end up having to pay $425 due them, or I can pursue a whole different path and c what else I might be able to do legally.  

 

Me too because I think you will launch into another conspiracy laden diatribe when they tell you that you need to settle this with the bank.

 

IMHO holding a consumer's access to his fully paid SDB acct for default on his checking account IS JUST absurd. 

 

Why would any consumer ever trust a bank to hold their most valuable possessions  in a safe deposit box only to live in this fear that if he would ever default on any of his other accounts (checking/savings/CD/moneymarket/investment). 

 

You can believe it is absurd all you want the problem you really  have is is is LEGAL for the bank to do this.

 

The majority of consumers have a perfectly sound relationship with their banking institutions because they do not over draw or default on their accounts.  Even those that do hit a rough spot know that they have an obligation to pay the money and typically make reasonable attempts to do so.  If the bank uses the right to set off in denying access they pay what they owe and the problem is solved.  It isn't complicated.

 

 people die not knowing what happened? sudden and dangerous situation happens to anyone and everyone!!!!!!. If the bank would not have the capacity to allow access just becoz he is unable to come up with the defaulted amount is IMHO very DANGEROUS PRECEDENT!!!!!!! 

 

It is a precedent that is well defined in contract law in standard banking agreements.  it isn't new and just because you didn't know about until right now and have become subject to it doesn't make it dangerous.

 

There are laws in place on how to access the box if the account holder dies or is incapacitated.  It isn't rocket science.

 

 I am so pissed off at this idea that they can hold me back on an account that is paid in full for the whole year.

I so much feel I want to be able to pursue all avenues possible and available and c what might come from it. Its surrendering to the policy of the bank if I am to give them their $425 right away. its a whole different thing if I work to find who may be able to find legal avenues to not have to succumb to such pressure from banks and see if you can ever ever make them see it your way n get away with having access to the SDB and have your contents removed and them let them continue collection activities. There has to be a way!!!!

 

The bolded statement is your biggest problem.  By all means keep searching for legal avenues that might help but based on my banking knowledge I do not see any.

 

The bank has ABSOLUTELY NO INCENTIVE to give you the contents then to try and collect.  You haven't paid so far why would you after getting your valuables?  A lien (set off) against the contents gives them the leverage they need to enforce the terms of their contract with you and is HIGHLY effective.

 

I suggest that you put the drama llama back in the paddock.  All this phony outrage, conspiracy theories, and communist insinuations only paint you as a nut case and if you approach the bank this way I guarantee all they will do is dig in for the long haul.

Link to comment
Share on other sites

 I may actually have no re-course in this matter, but I am so pissed off at this idea that they can hold me back on an account that is paid in full for the whole year.

 

I did some quick research and Texas law allows banking institutions to exercise the right of set off on safe deposit boxes for other accounts:  checking, savings etc. that are over drawn at the same institution.  

 

They also allow the bank to bill you for the expense of drilling, opening, and changing the locks on the box.  If you do not pay the money owed and they end up drilling this is going to cost you WAY more than $425.  Then you are REALLY going to be angry when that cost goes up.

 

What you have glossed over is that this is a CREDIT UNION.  Member owned.  By overdrawing your account and not paying you are cheating the other owner/members out of what they are legally owed.  Would you be happy if they said they would not pay you interest because another member was overdrawn and refused to settle the account?  No.

 

You said the account was overdrawn July of 2012.  You have had 9 months to settle this and done nothing.  NOW you want to be outraged because they are exercising their rights?  Doesn't make sense.

Link to comment
Share on other sites

I am not certain that "setoff" would apply in this instance unless the agreement the bank is relying upon creates a security interest in the contents of the box. In any event, by refusing to allow you access to the bank, the bank is in fact implying that they have a right to possession of the box contents in order to satisfy a debt. 

 

Once your box rental expires, this will become even more interesting. At that point, the bank will be able to drill into the box and remove the contents. Once they do that, under Texas law, they will become a bailee of the contents of the box. See, Mitchell v. Bank of America, 2002 WL 31139375 (Tex. Ct. App. 2002). The contract (agreement) terms will no longer apply to the contents. Arguably, even if a right to set-off did exist, it may be terminated by the creation of the bailment.

 

This is very interesting.

Link to comment
Share on other sites

I did some quick research and Texas law allows banking institutions to exercise the right of set off on safe deposit boxes for other accounts:  checking, savings etc. that are over drawn at the same institution.  

 

They also allow the bank to bill you for the expense of drilling, opening, and changing the locks on the box.  If you do not pay the money owed and they end up drilling this is going to cost you WAY more than $425.  Then you are REALLY going to be angry when that cost goes up.

 

Can you post your supporting authority on this, please? I think we could all benefit from your research on this.

Link to comment
Share on other sites

I am not certain that "setoff" would apply in this instance unless the agreement the bank is relying upon creates a security interest in the contents of the box. In any event, by refusing to allow you access to the bank, the bank is in fact implying that they have a right to possession of the box contents in order to satisfy a debt. 

 

Once your box rental expires, this will become even more interesting. At that point, the bank will be able to drill into the box and remove the contents. Once they do that, under Texas law, they will become a bailee of the contents of the box. See, Mitchell v. Bank of America, 2002 WL 31139375 (Tex. Ct. App. 2002). The contract (agreement) terms will no longer apply to the contents. Arguably, even if a right to set-off did exist, it would be terminated by the creation of the bailment.

 

This is very interesting.

 

Without reading the account agreement we don't know that the contract terms end with drilling the box.  The bank may have a contract written that states otherwise.

 

Texas law requires that the bank hold items removed from a safe deposit box for one year then they may be disposed of according to abandoned property law.

 

 

 

Can you post your supporting authority on this, please? I think we could all benefit from your research on this.

 

http://www.statutes.legis.state.tx.us/Docs/FI/htm/FI.34.htm#34.307

 

 

Sec. 34.307.  RIGHT OF SET-OFF. (a) Except as otherwise provided by the Truth in Lending Act (15 U.S.C. Section 1601 et seq.) or other federal law, a bank has a right of set-off, without further agreement or action, against all accounts owned by a depositor to whom or on whose behalf the bank has made an advance of money by loan, overdraft, or otherwise if the bank has previously disclosed this right to the depositor. If the depositor defaults in the repayment or satisfaction of the obligation, the bank, without notice to or consent of the depositor, may set off or cancel on its books all or part of the accounts owned by the depositor and apply the value of the accounts in payment of and to the extent of the obligation.

 For purposes of this section, a default occurs when an obligor has failed to make a payment as provided by the terms of the loan or other credit obligation and a grace period provided for by the agreement or law has expired. An obligation is not required to be accelerated or matured for a default to authorize set-off of the depositor's obligation against the defaulted payment.

©  A bank may not exercise its right of set-off under this section against an account unless the account is due the depositor in the same capacity as the defaulted credit obligation. A trust account for which a depositor is trustee, including a trustee under a certificate of trust delivered under Section 34.306(, is not subject to the right of set-off under this section unless the trust relationship is solely evidenced by the account card as provided by Chapter XI, Probate Code.

(d)  This section does not limit the exercise of another right of set-off, including a right under contract or common law.

 

(Emphasis mine)

Link to comment
Share on other sites

Here is a typical Right of SetOff clause from an account holder agreement:

 

RIGHT OF SETOFF. Subject to applicable law, we may exercise our right of setoff against any and all of your Accounts without notice, for any liability or debt of any of you, whether joint or individual, whether direct or contingent, whether now or hereafter existing, and whether arising from overdrafts, endorsements, guarantees, loans, account service charges, overdraft charges or other obligations. Our right of setoff applies to any and all items presented for payment or funds deposited deposited into your Account including, without limitation, automatic preauthorized electronic direct deposits from any source including government benefit funds of any kind. Each joint account holder authorizes us to exercise our right of setoff against any and all Accounts of each account holder.

Link to comment
Share on other sites

 If the depositor defaults in the repayment or satisfaction of the obligation, the bank, without notice to or consent of the depositor, may set off or cancel on its books all or part of the accounts owned by the depositor and apply the value of the accounts in payment of and to the extent of the obligation.

(Emphasis mine)

 

Are you saying the "value of the accounts" includes the personal property inside a safe deposit box? I don't think that is the case. Nothing you've posted suggests a "set-off" creates a security interest in personal property.

Link to comment
Share on other sites

Are you saying the "value of the accounts" includes the personal property inside a safe deposit box? I don't think that is the case.

 

Since Texas law requires that the contents be held for one year prior to disposal the account holder would have an entire year from the point the box is drilled to settle the overdrawn account and reclaim their property.  Once the property is deemed abandoned then if anything is of true value it can be sold to off set the amount of money owed to the bank and the rest of the funds turned over to the state treasury unclaimed funds account.

 

I see nothing in the banking law that prohibits them from placing a lien on the contents until paid.  

 

I found this relative to Texas and Credit Unions:

 

§ 125.404. LIENS AND SETOFFS. (a) To the extent of a member's direct or indirect indebtedness to a credit union, the credit union has: (1) a lien, enforceable with or without judicial process, on the member's shares and deposits, accumulated dividends, and interest; and (2) a right to set off against the member's shares, deposits, accumulated dividends, and interest. (B) A credit union may allow a withdrawal to be made without affecting the credit union's right to a setoff or lien. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.

 

§ 125.511. AUCTION OF CONTENTS. (a) If the rental, cost, and damages determined under Section 125.510(d) are not paid before the second anniversary of the date on which the box is opened, the credit union may: (1) sell all or part of the contents at a public auction in the manner and on the notice prescribed for the sale of real property under deed of trust under Section 51.002, Property Code; and (2) apply the sale proceeds to the rental, cost, and damages. (B) The credit union shall send to the comptroller as provided by Chapter 74, Property Code: (1) the unauctioned contents of a box; and (2) any excess proceeds from the auction. Acts 1997, 75th Leg., ch. 1008, § 1, eff. Sept. 1, 1997.

 

I think the OP has two problems:  (1) their checking account is overdrawn and closed and (2) the safe deposit box is legally being set off at the moment.  When the rental period expires and they do not renew then Texas law 125.511 takes over and they can drill and auction.  

Link to comment
Share on other sites

 

I see nothing in the banking law that prohibits them from placing a lien on the contents until paid.  

 

That seems to be the issue. You appear to viewing this in the reverse. You do realize that absent a provision in the law allowing "a lien on the contents" of the box, the bank has no right to do so? Otherwise the bank is simply committing common law trespass to chattel by interfering with the rightful owner's possession of his property. 

 

What statute are you citing below? 

 

Since Texas law requires that the contents be held for one year prior to disposal the account holder would have an entire year from the point the box is drilled to settle the overdrawn account and reclaim their property.  Once the property is deemed abandoned then if anything is of true value it can be sold to off set the amount of money owed to the bank and the rest of the funds turned over to the state treasury unclaimed funds account.

 

 

Are you saying that if the bank deems the contents to be of no resale value (such as a will, a deed) it can simply be disposed of?

Link to comment
Share on other sites

I found this, from Georgia. It's not Texas, but if the terms are similar (and I suspect they are), it appears the bank's set-off rights to the contents of the box apply only in the event of non payment or termination of the box agreement itself, and not to debts owed outside the scope of the agreement. 

 

 



 

From the Platinum Federal Credit Union Safe Deposit Box Agreement
 
Our Rights Upon Termination: If you do not pay the rent or this Agreement is terminated for any reason and you do not surrender the Box
and keys and any other security device used to access the Box and if the property in the Box is not considered unclaimed or abandoned
property as defined by applicable state law, we may take any action to the extent permitted by law including: (1) opening the Box
forcibly, (2) removing the contents and holding the same on special deposit and as security for the payment of all amounts owing to us,
(3) applying any security deposit to offset amounts you owe us, (4) returning any contents or proceeds of contents to you upon your
written request except to the extent that we have a right to set-off unpaid rent and all our expenses incurred as a result of your default,
(5) reporting your default to consumer reporting agencies, or (6) to do any combination of the preceding acts. All contents removed from
the Box shall be retained by us for a specified period of time established by statutory authority after which time any unclaimed or
abandoned contents shall be delivered to the appropriate state offices as provided by law.

 

 

I also think @Clydesmom's argument could easily be the correct one. The entire issue still appears to turn on whether the banking agreement (for the defaulted account) includes a set-off provision which could be construed to create a security interest in personal property in the safe-deposit box, not simply a right to money held in other accounts with the bank. 

Link to comment
Share on other sites

From a Harris Bank deposit account agreement

 

 

 

Prior to exercising our setoff right, we will provide you with notice to the extent required by Applicable 
Law. If you fail to satisfy a claim, you hereby authorize us or any one of our affiliates to pay all or a 
portion of the amount of the claim by a debit to or withdrawal from the Account, without obtaining 
your consent.

 

 

The next question is necessarily, how do you make a "debit to or withdrawal from" the contents of a safe-deposit box?

Link to comment
Share on other sites

That seems to be the issue. You appear to viewing this in the reverse. You do realize that absent a provision in the law allowing "a lien on the contents" of the box, the bank has no right to do so? Otherwise the bank is simply committing common law trespass to chattel by interfering with the rightful owner's possession of his property.

What statute are you citing below?

Are you saying that if the bank deems the contents to be of no resale value (such as a will, a deed) it can simply be disposed of?

Actually I think you may be looking at this in the reverse.  You are stating that because the law doesn't say they CAN do it that they are prohibited.  That isn't the case.  Absent a law prohibiting the credit union from doing this it is legal.  I find nothing in Texas law that prohibits it either in fact the statute could be interpreted that it is allowed.

 

The statutes I quoted specifically gives financial institutions the right to a lien against assets (and the contents of a safe deposit box are assets) without having to go to court when the account holder owes the bank money under the right of set off.  It also specifically states that if it is addressed in the account agreement it is legal under Texas law.  

 

Statute 125.511 deals specifically with Credit Unions, safe deposit boxes, and Texas law. It also quotes the Texas code when contents are disposed of and what the statute code is. The bank has no obligation to keep the documents found in the box. I imagine anything of a paper nature is shredded other than money, bonds, securities etc.

Quoting Georgia law isn't relevant because "similar" in another state doesn't apply.  Texas has NO obligation to consider account agreements or banking law from other states.

As I said before, right NOW the Credit Union is exercising their right of set off because the rent is current. The renewal fee did not go through because the account is overdrawn/closed. Until the rental period expires the credit union can do this. Once the rental period expires then no payment of rental fees applies because the renewal fee was not paid. Access can still be denied for the nonpayment of the rental.

The OP has a catch 22: he can not get in because the CU can restrict access now under set off and he can not get in after the rental period expires for nonpayment of the renewal fee.

Keep in mind that because credit unions are member owned slightly different banking laws apply.

Link to comment
Share on other sites

 The next question is necessarily, how do you make a "debit to or withdrawal from" the contents of a safe-deposit box?

I suspect what the CU is doing is relying on the portion of the law and their account agreement that states if one account is overdrawn the can restrict access to ALL accounts until the matter is settled.

Since the second account is a SDB, the the contents are deposited, they just are not a direct asset until the CU is forced to creafe the bailment or lien for failure to pay.  

 

You make a "withdrawal" by complying with the law and drilling into the box, inventory the contents, hold them for the required period and then dispose of them under Texas law.  

Link to comment
Share on other sites

Safe deposit agreement is lease agreement, independent from other agreements. It is not an "account" in the context of a deposit account. The lessee is considered for all purposes to be in possession of the box and its contents. Tex. Fin. Code Ann. 59-103. See also, Eller v. NationsBank of Texas, NA, 975 SW 2d 803 (Tex. Ct. App. 1998).

 

The holding in Eller suggests that @energizer may have a claim against his credit union for deceptive trade practices. The time has come to recommend to @energizer that he consult with a Texas attorney regarding the matter. Clearly the credit union has no intention of doing anything other than what it damn well wants to, regardless whether they're allowed to or not.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.