I got three months behind on an equity loan, due to having a triple by-pass, and no work. I put a loan from my brother in the bank to pay bills and back interest. The same day they took these funds, and put hold status on $3254.00 of my money. The principal is first time. I intend to pay my balance; one payment is not due till the 15th. Can they do this without my permission and take my money, also adding principal? My loan is interest for ten years. I am waiting to sell my house to make a profit.
The bank has the right to setoff funds they owe you (the deposit) against funds you owe them (the loan). You will need to ask they for justification on the amounts they debited. If your loan has been accelerated or a default clause otherwise allows them to require a principal payment, that may explain why they took what they did.
Make acceptable payment arrangements with a lender for past due payments. Then they will have a plan and won't be looking for your deposits.
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The bank has the right to setoff funds they owe you (the 