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Can your employer take money out of your account if you set up a direct deposit?
Career / 5:57 PM - Saturday January 05, 2013

Can your employer take money out of your account if you set up a direct deposit?

I know it sounds like a silly question; however, is it possible that this can happen? Can I go to my bank and ask them to only accept deposits from a certain company? How do you protect yourself when it's a overseas home based job? How can I determine if this would be a SCAM or not?

- Asked by Female, 29-35

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I'm sure they could if they could forge your signature or knew enough personal information to con someone over the phone, but I've never heard of it happening.

- Response by diznykd, A Thinker, Female, 46-55, Lawyer

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the direct deposit papers you filled out allow deposits

they arent a check or withrawl slip

if in douby take a copy of the direct deposit appers your company gave you to the bank and have them look at them

- Response by galdeen, A Creative, Female, 36-45, Administrative

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if they can take money out of your account without your permission then is a fraud.

- Response by concorbp, An Intellectual Guy, Male, 56-65, Self-Employed

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They can't take money out once it is deposited. They take all deductions before it goes into your account. They have to provide you with a pay stub that has all deductions that were made. If it is anything other than the usual deductions, it has to be authorized and signed by you. If you wages are being garnished for some reason, the place garnishing them has to notify you in writing before that takes place. The terms of the garnishment is also in writing.

- Response by iamboo2, A Thinker, Female, 46-55, Charlotte, Therapist

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Technically "yes," but legally "no."

There are provisions in interbank transfer agreements that allow the depositing bank to make "corrections" that could result in the withdrawal of funds from your account. Your bank will notify you of this, but it is an unusual and uncommon occurrence in a very convoluted area of law.

HOWEVER, your employer is required by another set of laws to segregate payroll into separate accounts that are not credit based. Payroll checks and direct deposits (unless you are the federal government) have to be made from accounts into which your employer first deposited funds sufficient to cover ALL checks and deposits made for as long as they are outstanding.

So, you can see that if your employer is following the law, then there is little cause for concern that they (their bank really) would ever reverse any deposits or have cause to do so.

- Response by A Career Man, Male, 36-45

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