My vehicle payment was due on the first of the month. My bank carries the loan. Out of the blue they decided to take out the payment with my consent. Is that legal?
Assuming the payment was taken without your consent, yes, the bank can do that. In both your loan contract and your deposit agreement there should be a clause that addresses setoff. It means that if you owe the bank money, a car payment that is past due as an example, and they owe you money, funds in a deposit account, one may be taken to setoff the other. Unless your state law requires it, no pre-setoff notification is required. Any time a borrower expects to make a payment late, he should communicate that to the lender and tell them when to expect the payment.
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Assuming the payment was taken without your consent, yes, the bank can do that. In both your loan contract and your 