Default Car Loan

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?

Comments for Default Car Loan

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Feb 10, 2012
 Default Car Loan
by: Debtcollectionanswers

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.

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