Can a bank legally keep me from withdrawing the money in my savings because of money that I owe for a repossession?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a bank legally keep me from withdrawing the money in my savings because of money that I owe for a repossession?
About 6 years ago I got a loan to buy a 5 wheeler that my wife and I lived in for a while. Then 3 years ago we moved and my parent’s friend took it and was making the payments on. However, about 6 months ago he stopped paying and it was repossessed. Now because of the money owed, the bank will not let me take out the money that is still in my savings account. Is that something they can legally do?
Asked on June 12, 2012 under Bankruptcy Law, Montana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
While the parent's friend was making the payment on the vehicle, the loan was still in your name, correct? If so, then you are legally responsible for it.
Whether the bank can prevent you from withdrawing money while in default on the loan depends on the loan agreement and the other agreements between you and the bank (for example, any agreements you signed in opening the account). If one or more of those agreements gives the bank the authority to do this, then it is legal--otherwise, they would not seem to be able to do this. The first thing, then, is to review all such agreements carefully; you can also ask the bank to explain their grounds for not letting you withdraw your own money, and to point to any terms in any agreemens given them this authority.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.