Tuesday, February 10, 2015

Can a bank withdraw payment from your checking account without your permission to satisfy an overdue loan payment?

Question

Can a bank withdraw payment from your checking account without your permission to satisfy an overdue loan payment?



Answer

The answer is probably. If you look at your loan papers and your agreement with the bank, the loan is cross collateralized. That means if you fall behind they can take the money from your account.



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