Bank taking all money from checking without permission?

Question

I have a installment loan (morgage) and checking account at Suntrust Bank. I fell behind in my installment payment due to illness. I was (31) days past due and without notice they took the 799.32 out of my checking account. There was only $715. in there! My checking was never set up for automatic payments to them.
Needless to say it put my account overdrawn with hundreds of dollars in overdraft fees. All this happened during this weekend, I only found out I was overdrawn when I was at the pharmacy trying to pay for my childs medicine.
I called the bank crying when I got home and was told "well its kind of like a garnishment". There's nothing we can do? I said well at least with a garnishment they have to file paperwork and then can only take a percentage. I am literally left with nothing to take care of my children for a week and won't have anything next week after paying for bank fees.
Anyone have any insight about this situation or topic?
Please Help,
Kimber Leigh

Answer 1

Actually read your promissary note, in it you will see a clause called Right Of Offset. While they have the right to offset this monthly obligation with any other asset you have within the bank. They don't have the right to overdraft an account to execute this right causing you to incurr additional nsf fee's and possibly daily overdraft fee's. If this transaction is the transaction took you into a negative balance you can actually file a complaint with States Attorney General's Office and even possibly your local Office of Thrift Supervision. If however, other transactions came through the account that day they will argue that you overdrew your account with those other transactions.

At best you will get your fee's reversed but the payment is what they are legally entitled to.

Best of luck and yes it's time to close your checking account and open it at another bank. It will eat them up inside to know they can never exercise that right again. Also do it now, because if you can not bring this account back into the positive balance quickly the will close it for you and report you to a company called Chex Systems. If they do this you will not be able to open an account at any bank in the US until that reporting is cleared up.

Answer 2

Hate to say it, but yes the bank can take money without your permission. With this particular case, you have an account that is JOINT but money is owed. When there are other accounts that has money in it and your who ever name is on that account , the bank is going to satsify they negative to either bring it back to a positive state or to close it. I would suggest that if you two are still on talking terms ask him to sign papers so that your name can be removed. That way you will no longer be responsible for anything else. Now if he doesnt agrea to do this, the only option you have is to get the account back to a zero balance and close immeaditely. Whoever told you that you cant close the account without a divorce is telling a tale. I work for a bank. It's whoever gets to the money first. Sorry, I hope things work out for you.

Answer 3

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RE Bank taking all money from checking without permission?

I have a installment loan (morgage) and checking account at Suntrust Bank. I fell behind in my installment payment due to illness. I was (31) days past due and without notice they took the 799.32 out of my checking account. There was only $715. in there! My checking was never set up for automatic payments to them.
Needless to say it put my account overdrawn with hundreds of dollars in overdraft fees. All this happened during this weekend, I only found out I was overdrawn when I was at the pharmacy trying to pay for my childs medicine.
I called the bank crying when I got home and was told "well its kind of like a garnishment". There's nothing we can do? I said well at least with a garnishment they have to file paperwork and then can only take a percentage. I am literally left with nothing to take care of my children for a week and won't have anything next week after paying for bank fees.
Anyone have any insight about this situation or topic?
Please Help,
Kimber Leigh

Answer 4

It depends on what your loan agreement says. It's probably there someplace that they can do it. You might be able to talk them into refunding some of the overdraft fees, but they don't have to. In the meantime, you're stuck.

I'd consider opening an account at another bank, and putting whatever income you have into the new account, so at least it won't happen again, and you can pay off the overdraft fees gradually.

Good luck.

Answer 5

If you don't have food or medicine, go to your church and tell the Pastor. Most churches have a "discretionary fund" to help people in serious need. You will have to pay it back, but you can eat for a couple weeks. If you don't attend a church, go to the Salvation Army for help. Also, you can't do much about your mortgage, but I'd change my checking and savings accounts to another bank as soon as you can. That way, this can't happen again.

Answer 6

You were 31 days past due. What precisely did you think was going to happen? The bank doesn't need to 'file paperwork'. Read your loan contract. It's all in there. I'll bet you didn't even contact them when you started to have problems.

Go to your local United Way....they can at least keep you and your kids fed. They will insist that you get your financial house in order though

Answer 7

It's called right of offset. It has to be in the loan documents to be valid. However, you might be able to argue your way out of the NSF fees in you fight hard enough since the bank's actions caused the nsfs. Be ready to fight to the manager level since most bank employees no longer are allowed to reverse fees. And consider joining a credit union...

Answer 8

I am also voting that you signed something, somewhere, probably in the loan process for them to do this. I am sure they wouldn't be doing it, if they legally couldn't be. Sadly, I guess this is a lesson learned for you not to get behind on payments. Good luck.

Answer 9

That's too bad. But I bet that if you read your loan agreement that you did sign, somewhere in all that fine print, it will say that they can do that when you get that far behind.

Answer 10

Unfortunately you had your account in the same bank as your loan.......(hint)