|
 |
Home >> Lending >> Vehicle Loans
Bank Offsets Account for Auto Loan
I had a vehicle repossessed in January, 2009. The bank sent me a letter asking me to communicate with them about "paying off the loan." I tried for a week straight, to no avail, so I continued using my bank card, etc. I always had money in my account, even when the vehicle was repossessed, and they never touched it. Last week I was using my bank card, writing checks, etc., and found out that they just decided to do it on their own without notifying me, which in turn led my account to be overdrawn. Are they allowed to do that? What do I have to do now?
|
|
 Yes they can. This is a process called setoff, where you have money on deposit and owe them a past due debt. They take the deposit and apply it against funds you owe them.
If you owed them more than they have taken so far; the next deposit you make may also be taken by them. Call them to ask what the debt amount was, what the car was sold for and how (i.e., a public auction, private sale, etc.) and what the current debt amount is. It may be they will settle with you or they may want payment arrangements for the amount still owing.
Published on BankingQuestions.com 3/09/10
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
