Can a bank apply a past due amount to a refinanced car loan to your Savings account?
I am a member with Navy Federal Credit Union. I had my car refinanced and havent been able to keep up with payments for various reasons. I was behind 93 days. Today, I signed into my old account just to check it. I had a previous balance of -57.93 I paid it brung my account current. Like I said today I signed into my Navy Federal Account and noticed my savings account was -$397.00! I am sure this is the past due amount for my car loan which is now a refinanced loan with collateral collections. I really dont have no money to pay so I had to let the car get repossed. Can a bank do this to people? Also, what happens if I can not pay the bank the whole 6,316$ amount? I've had alot of difficulties with this bank and now this is the straw that breaks the camel's back. Navy Federal is a horrible bank. All my opinion I know!
The vehicle is gone already.
Interesting! NFCU is a military bank. Most of the loans are processed over the phone or internet they send you a few pieces of paper to sign and you send it back. I am sure all the clauses are not attached to these documents. Most banks will not even consider giving you a loan unless you have an account open with them; well sometimes in life we learn the hard way and thats what i did. I am not gonna make excuses I will pay the loan back but its crazy. I never want credit again. It does more then just destroy your chances of never getting a loan it also destroys your chances of not getting hired too. From now on my mentality is if I cant pay cash then I dont need it. STR8 UP!!!
I knew some1 like bill would come on here with his stupid answer. Bill when you find yourself in a tough spot, then comes a point in your life where you HAVE TO choose between bills or family. Obvious choice there! right simpleton?
- JLv 41 decade agoFavorite Answer
- kyleLv 41 decade ago
When you have your savings or checking account with the same financial institution that you also have credit cards or other loans like auto, they usually have a "dragnet" clause in the loans to tie them to your checking or savings account. This isn't nice but many do it. Make sure to contact the bank on the loan right away and try to sell the vehicle yourself. If you owe more than the vehicle will sell for the bank will come back to you for whatever is left. Good luck
- estielmoLv 71 decade ago
That's why it's not always a good idea to have a loan and savings account in the same bank. If you closely examine your paperwork you allow them to tap your savings if you fall behind.
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- BillLv 71 decade ago
You are saying how horrible they are. What about you being a"horrible client" who can't pay for their loans. Only "you" are responsible for your poor financial condition not the bank.
- SlickterpLv 71 decade ago
- Anonymous1 decade ago
Yes - you agreed to that (whether you knew it or not) when you got the loan.