I have a checking account and auto loan with a credit union. My car payment was late and they automatically took the money from my checking account without notifying me they were going to do this. Do they have a legal right to help themselves to my checking account funds?
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It's possible that there is a provision in the car loan agreement that allows the credit union to take funds from your checking or share draft account if you go past due on the loan. Take a look at the paperwork for the loan if you kept it, and see if there is language about default or set-off (sometimes called offset). Many states permit a lender to use set-off rights once a loan has gone into default. Default is usually defined in the loan agreement. If you challenge the credit union and it is unable to show you documentation justifying its actions, you should ask for a refund of any overdraftfees you may have incurred because of the charge to your account.
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It's possible that there is a provision in the car loan agreement that allows the credit union to take funds from your checking or share draft 