QUESTION
can a bank hold funds in your account for FUTURE payments on a loan? without my permission?
Asked on Apr 04th, 2012 on Business Law - Washington
More details to this question:
I am going thru a divorce.... so we closed an account 30 days ago at my credit union, we filed our taxes prior to closing this account and so my taxes were sent to this account. I was told that it would be returned to the government and then resent in a check, WELL the credit union went ahead and accepted this deposit ON A CLOSED account that has been closed for over 30 days. I have three loans with this credit union, my house, a personal loan and a credit card. The credit card was not secured but the other two are. I was behind on the credit card as that is my ex wifes and she hasnt been paying on it, so they tool 1074 out of my taxes and put it on that credit card. I was going to take the rest and pay off my personal loan of 597.00 which was secured by my motorcylce and they informed me today that they are HOLDING my title to my bike because they have NOW made my bike collateral on my VISA loan and they ALSO tool the rest of my tax money to HOLD for any future payments on my VISA??
1 ANSWER
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It is difficult to answer your questions from the limited information provided. As a general matter, a creditor is entlted to be "cross-collateralized" if it engages in multiple extensions of credit to the same borrower. The right to do so will depend on the paperwork that relates to the transactions. An attorney would need to review those documents to respond to your questions.
Answered on Apr 06th, 2012 at 7:43 PM