Overdrawn Account and SSI Monthly Check Funds

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Question:

We have a customer who receives an SSI check monthly. They deposited a bogus check which we charged back against the account overdrawing it. Can we leave it overdrawn and collect when the funds come in at the first of the month?

Answer:

Yes. There is no prohibition on doing this. However, whoever monitors the account for overdrafts should be prepared for what will happen if you've left any funds in his account after taking what's owned you when they run out. Consider now how you'll want to handle the possibility of overdrafts when those funds are gone.