QUESTION
Can bank or credit union take money out of an account after they repossessed car?
Asked on Jun 10th, 2013 on Bankruptcy - New Jersey
More details to this question:
I had a car repossessed by URW credit union and when I went to withdraw money from my savings account, I was told that they had taken it. I was also told it was in the loan agreement but I have not been taken to court and nothing has been done with the car yet. Is this legal?
6 ANSWERS
When you have an account with a credit union, you usually have to pledge all the money you have in any accounts with them as collateral for any loans you take out with the credit union. Therefore, if they repossess your vehicle and sell it and there is a balance left on the loan, they can apply the money in your accounts to that balance.
Answered on Jun 11th, 2013 at 4:01 AM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Most likely you signed a cross-collateralized agreement. Meaning that you tied all your debts and deposit accounts together.
Answered on Jun 10th, 2013 at 11:59 AM
Bankruptcy Attorney serving Henderson, NV
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Jeffrey A. Cogan Chartered, a PLLC
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Presuming that the savings account that they took the money was also URW credit union, yes they can do that. It is called "set off". You might be able to get the money back if you file for bankruptcy but I need to know more about the timeline.
Answered on Jun 10th, 2013 at 11:59 AM
Read your loan and your bank agreement.
Answered on Jun 10th, 2013 at 11:59 AM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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Yes, a bank (or credit union) has a right of "setoff" allowing it to apply funds in a deposit account to any debt that you owe.
Answered on Jun 10th, 2013 at 11:58 AM
Bankruptcy Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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It really depends on whether this was a Bank or A Credit Union as they are different and have different powers. .
Answered on Jun 10th, 2013 at 11:58 AM