QUESTION
Can a bank freeze all of my accounts because I am late on my mortgage, causing my checks to bounce, and putting me in greater financial stress?
Asked on Jan 12th, 2012 on Business Law - Georgia
More details to this question:
I have my mortgage with the credit union. This is the first time I have been late in 10 years. Because I was 30th days late the bank froze my checking, savings account. Therefore the checks I wrote bounced. Then the bank proceeded to withdraw a NSF fee for every check that bounced thereby putting me in more financial stress. I have to pay my mortgage, which I borrowed money to do. But now I have all these bounce checks so I am under more stress.
1 ANSWER
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It depends on the terms of the agreements you signed. Banks frequently obtain signed agreements from their customers under the terms of which the bank has the right, following a default, to offset deposits it is holding against the customer's defaulted debt.
Answered on Jan 12th, 2012 at 10:47 PM