My granddaughter receives survivor's benefits by direct deposit. Her father's name is on the account as C/F (custodian for?) Her father cashed a personal bogus check for a friend and when it bounced the bank took the funds from my granddaughter's account as he has no personal account there. Is it legal for the bank to do this?
Yes. An account holder cashed or deposited a check against an account. Wether that holder is single, joint, or custodial does not matter. They have full access and rights to that account.