My grandfather was a co-signer on my Aunt's truck. She failed to make the payments and the truck was repo'd. The trucks finance Co. withdrawed $3000.00 from my grandfathers bank account, without notice, and that is all that my grandfathers retierment check is $3000. So he is up S*** creek. So I ask was that legal for them to pull that money out with out notice?
2006-08-11 05:55:29 · 7 answers · asked by northstarhorsepower 1 in Business & Finance ➔ Personal Finance
NOT IF THEY REPOED HER TRUCK, THEY CAN'T TAKE MONEY FROM HIM OR HER NOT THAT THEY REPOED IT.
CALL AN ATTORNEY ASAP
2006-08-11 06:08:50 · answer #1 · answered by littlebettycrocker 4 · 0⤊ 0⤋
First, even if they repo the truck, they are still entitled to recoup losses.
Second, as the cosigner, your grandfather is liable for their losses.
Third, they could only withdraw the money from his account if he authorized them to do so. You grandfather may have authorized such a withdrawal when he cosigned. If he did not authorize the withdrawal, he should talk to his bank right away. Get a lawyer if the bank does not help. Your grandfather will likely qualify for free legal assistance through legal aid. Check the yellow pages or search the web for a local office. If you find a listing for your local Bar Association (every county has one), you can call them, and they will be able to give you a number for legal aid.
However, in the end, the bank is entitled to collect from you grandfather, and they may go to court to do so.
2006-08-11 13:49:43 · answer #2 · answered by mr_law_jersey 3 · 0⤊ 0⤋
Actually, the creditor went to court to get a garnishment on your grandfather's house. The court awarded the garnishment and the bank was obligated to execute the withdrawal.....most banks however, don't release the funds to the creditor for ten days....get gramps to small claims (where the garnishment was issued) and request an emergency hearing....Tell gramps not to deposit anymore funds in the account. While the garnishment was a "one time" event, the creditor can go back and ask the court for more.
Gramps owes the debt legally, but make sure the creditor doesn't fire sell the vehicle (way below market value) and then sue him for the difference. Very sleazy and very common.
2006-08-13 00:51:06 · answer #3 · answered by Paula M 5 · 0⤊ 0⤋
Actually, according to your scenario that isn't legal in ANY state in the union. However, if (when he co-signed) he signed a piece of paper saying if the primary borrower defaulted he would allow that then he's screwed. either way... I'd call the bank and tell them this wasn't an authorized withdrawl... they'll probably give him his money back within a week or two. Then close the account and open a new one so they can't do it again. I went through something similar with an mobile phone bill (I hate Sprint). lol. Good luck.
Slainte,
-D
2006-08-11 12:59:39 · answer #4 · answered by chicagodan1974 4 · 0⤊ 0⤋
Yup...co-signers assume the same risk as the person they sign for. Too bad your aunt messed up and now pops has to foot the bill.
2006-08-11 13:01:51 · answer #5 · answered by Greg 5 · 0⤊ 0⤋
I think so, b/c when he signed the loan, it meant he would pay that $$ if she did not. If the $3,000.00 paid it off though, they should give him the truck back. Also depends on the state you live in and the state it was purchased at. Ask a lawyer.
2006-08-11 12:59:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
when he signed the loan he is just as responsible for making the payment as your aunt, the finance company can come after either one of them, but no they can not just pull money out of his account with out his conscent, it's illegal
2006-08-11 13:01:53 · answer #7 · answered by Anonymous · 0⤊ 0⤋