Does Usairways Direct Deposit Your Check?

[skygirl]

I was told that with my authorization to direct deposit my pay into my account I was also authorizing USAirways withdraw it back out. This has happened in other similar situations when the bankruptcy turns into a liquidation. I verified this information with my bank, as you can with yours. I'm going to move my money after each pay check as quickly as possible. I'm sure I'm being overly paranoid but I wanted everyone to at least be aware that this is a possibility.

 

[us0004us]

you may want to check again.. its just a one way street for direct deposit...

not two way....

 

[AnalyzeThis]

Actually, it happened to me, deposited, filed and by morning it was out. The bank indicated the company had reversed the deposit. So.........

 

[jimntx]

The original post is correct. Most organizations which provide direct deposit whether for paycheck or otherwise also require the ability to withdraw funds from your account "in case they accidentally over pay you or pay you in error." It's usually in the VERY fine print in the direct deposit agreement.

 

[nycbusdriver]

I was told that with my authorization to direct deposit my pay into my account I was also authorizing USAirways withdraw it back out. This has happened in other similar situations when the bankruptcy turns into a liquidation. I verified this information with my bank, as you can with yours. I'm going to move my money after each pay check as quickly as possible. I'm sure I'm being overly paranoid but I wanted everyone to at least be aware that this is a possibility.

[post="180525"][/post]​

You are correct. And if you try to get your bank to change it into a one-way proposition, they will not.

However, as someone else pointed out, the reason for this policy is to correct errors that may occur. It would be interesting to see a company try to take back money that was actually earned. Somehow I think the bank might be held liable, in additon to the company, because that would be embezzlement and the bank would be an accomplice.

I think your direct deposit money is safe. On the other hand, the USAirways management are theives anyway, so it may very well be wise to withdraw your money and stuff it in your mattress!

 

[USFlyer]

Reversing a direct deposit for any reason other than an "error" is a felony, as far as I've been told.

 

[wench]

Stuff the monies in the mattress?

On X_PRESS WAGES????
HHHHHHHHHHHHHHHAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAA :down:

 

[toddtravels]

Once an organization has your routing/ABA number and account number, they can do as they please with the funds in your account. The fact that they have this information is your authorization for them to deposit or withdraw from your account. I worked for a bank immediately following furlough from US Airways. Let this be a lesson to everyone. Never EVER pay bills by automatic withdrawal from your checking/savings account(s). Always give your credit/debit card number. There are ways to get your cash back after an ACH withdrawal (Automated Clearing House), but it's a HUGE hassle and may not work in cases of a Chapter 7 filing.

 

[wench]

To validate this, I spoke with FCU this morning,and yes the company(within 5 days
can Takeback your deposit)..It WAS NOT LIKELY THIS COULD OCCUR>
So, my next conversation went like this, the day the check BOUNCES< come hell or high water, I walk straight out the front door..

They can have their t/c and gates...I WILL NOT BE ABOUSED AND MADE A FOOL OF>

Buy bye!

WILL NOT WORK FOR FREE!!!

 

[phillyguy]

In BK proceedings a judge will review all payments to vendors in the prior 90 days to see if there were any preferential payments to some suppliers versus others.

The court can order vendors who were paid in the prior 90 days to return some or all of that money.

So I wonder if that may apply to employees also - don't know but it may be the same type of situation

 

[ClueByFour]

Just as a note, ABA number or not, this is dependant upon your financial institution. While I don't work for US, my employer direct deposits my paycheck.

Without my authorization or a court order, they cannot get it back. This is by design, although I keep an account with an institituion that permits this specifically for reasons like the one that opened this thread.

 

[nycbusdriver]

In BK proceedings a judge will review all payments to vendors in the prior 90 days to see if there were any preferential payments to some suppliers versus others.

The court can order vendors who were paid in the prior 90 days to return some or all of that money.

So I wonder if that may apply to employees also - don't know but it may be the same type of situation

[post="181146"][/post]​

I think you answered your own question in the first sentence.

Employees are NOT considered vendors.
Wages are NOT considered payments, preferential or otherwise.

 

[jimntx]

The talk of withdrawing earned paycheck as a felony might be technically true unless the company could say they were ordered to do so by the BK court. If UAIR's financial condition took a sudden turn for the worse and they shut down--i.e. Ch. 7--and say it happened on payday where the EFTs had already been sent out. An argument could be made in law that the paycheck payments were illegal because in Ch. 7, employees are not only unsecured creditors, they rank above only the stockholders in getting proceeds from a liquidation.

 

[wings396]

So to be safe, run to the Bank or ATM each Payday and withdrawl your pay before they get a chance to do this.

 

[mweiss]

Once an organization has your routing/ABA number and account number, they can do as they please with the funds in your account.

[post="180680"][/post]​

Only in a technical sense. Yes, once the fund transfer request hits the ACH, the money will move. However, there are significant legal issues surrounding such actions. Doing so without the account owner's permission is a felony (provided that you can prove malice).

Having said that, this nation has pretty weak consumer protections when it comes to ACH. Those of you with a bit of grey may recall that it used to be that way with credit cards as well. It wasn't until a couple of decades ago that the consumer protections associated with credit cards were put in place.

Europe is much nicer about the whole thing. If someone takes money from your account, you can call the bank and have the transaction reversed immediately. In the United States, you must resolve the issue with the party who took the money out of the account (through a civil suit, though you can also file criminal charges if there is evidence of malice).

Bottom line, it is technically possible for US Airways to deplete all employees' accounts. However, anyone involved with such a scheme absolutely would find themselves in prison. As a result, such an outcome is extraordinarily unlikely.