bank paid my loan with parents account

[hjcook1]

What is the name of your state? Nebraska
I obtained a car loan a couple of years ago with a bank. Since then we moved to another state and closed our accounts, but left the loan intact. I got behind on some payments and was trying to work out payment arrangements. A loan officer told me that since the loan was now in default, they wanted payment in full. He said he would wait until Friday, April 1, before taking further action (unspecified). On Monday, April 4, the bank deducted the amount to pay off MY loan from MY PARENTS' account. My parents were never involved with this loan, had not co-signed. The bank also sent a letter to my parents advising that the amount was taken from their account to pay off a loan the I had defaulted on. My brother and I were added as authorized users on this account many years ago in the event something happened to both parents. Can the bank legally do this? Are they allowed to disclose info on my loans that my parents are not involved in? I would like to know what recourse I have against the bank.

 

[goaded]

if your parents were not cosigners on this loan - the bank is WRONG - your parents should get a lawyer and sue!

They would have to have a judgement against you to access your bank accounts or any you were au to ...

Get a lawyer!

 

[Ladynred]

Nope, sorry, the bank was within their legal rights to take that money.

It doesn't matter that your parents weren't on the LOAN, YOUR name is on THEIR bank account !! THAT is what gives the bank the right to take that money.

Now, if your parents want to make sure their kids have access to their accounts in case anything happens to them, then they need to draw up a POWER OF ATTORNEY for each of you, NOT put your names on their accounts ! Its easier to do it that way, but the POA would NOT open up their accounts to YOUR debts.

Now its time to fess up with your parents.. and for your parents to take YOUR name(s) off their bank accounts. The bank did no wrong in revealing your money problems to your parents, they are NOT bound by the FDCPA, they are the original creditor and are bound by no such restrictions.

 

[goaded]

I do agree that kids should not be on their parents accounts, but thats besides the point ... its my belief that they cant go after your bank account unless they have a judgement against you!

 

[Ladynred]

OH yes they can !!! The bank has the right of set-off against funds on deposit if you default on any other obligation you owe the bank. They do NOT need a judgment. Its all in the account terms and probably in the loan agreement.

 

[KLAchemist]

Just speaking from experience, what LadynRed said is true. Everytime my husband's car lease is more than 5 days late the bank dips into our joint account and helps themselves to the funds for both the current and next payment. It is in the black and white of the lease contract. Hope this helps.