Answers about the Right of Offset

My Social Security check was deposited into my bank account. Before my check was deposited I wrote a check for an amount larger than what I had in my account, and the bank used some of the money from my Social Security check to pay the extra amount of the check that was not in my account plus the fee I was charged for making this mistake. May the bank do this?

Under current law, a bank may administer a consumer’s deposit account by making additions to (credits) and subtractions from (debits) the account, and may charge fees for these services.  This is true even when the money in the account is from a Social Security benefits check.