Does the bank have the right to remove funds from a personal account without authorization or notification in order to bring a loan current?
This is known as the right of setoff. If you have a personal account and a loan or another deposit account at the same financial institution, and you are delinquent in your loan payments or the account is overdrawn, the bank generally has a right to access your personal account without notification to you to bring the note current or the account positive. This is usually addressed in the loan agreement and/or depository contract.
Related Questions
- Does a financial institution have the right to remove funds from a personal account without authorization or notification in order to bring a loan current?
- Does the bank have a right to set-off, i.e. to remove funds from a personal account without authorization or notification in order to bring a loan current?
- Does the bank have the right to remove funds from a personal account without authorization or notification in order to bring a loan current?
