Can a bank that holds your car loan, take money from your checking account without authorization, because the checking account is at the same institution?
Although there are exceptions, if you fall behind on a debt that you owe to a bank -- like a car loan -- and you have an account at that same bank, it has what is called a "right of off-set." In other words, it's legally entitled to take money from the account to pay the past due loan. For more information about this right, go here: https://www.debtcollectionanswers.com/behind-on-loan-can-bank-take-my-money.html.
Feb 18, 2015
Can they do that by: Anonymous
I have a loan thru rcb bank my car was used for collateral... I had a savings acct which I closed thru the same bank. My tax return went to this bank. My acct is closed. The bank kept my return can they do that?
Reply from DebtCollectionAnswers.com:
It is possible. In some cases, the contract you sign may give the lender the right of offset which allows them to take any funds on deposit with them to pay a defaulted loan. If you think their actions may be illegal you may want to consult a consumer law attorney or file a complaint with the CFPB.
Learn how debt collection laws can help you! This website does not provide legal advice. All information is for educational purposes only. Copyright 2007 - 2018 by Mary Reed and Gerri Detweiler. All rights reserved. Read our Privacy Policy here