lender takes payment from your bk account

[ostbob]

Has anyone ever heard of a bank that can take your mortgage payment out of your savings account with out your permission? The local news had a story about a guy who is going into foreclosure and he has a Wells fargo 2nd and also banks at Wells Fargo. The news station said they investigated and the banks can in fact take your money.



can this be true and why haven't we heard of it before now?

[LadyDoveFL]

If the guy going into foreclosure had the savings account linked to his checking account (ala overdraft protection), I can see the bank doing that, especially if the mortgage payment was set up to automatically debit from the checking account.

Moral of the story, keep your loan account(s) and personal account(s) in different banks. Oh, and don't set up automatic payments from your checking account...

[csykes]

Social Security and Retirement funds are exempt by law and cannot be taken out of anyone's checking or savings or CDS. That does not mean the Banks will not.

Bank of America took a 75-year old man's social security out of his account for credit card he owed the bank. The poor man had checks bouncing for lights, gas, phone.

His family got a lawyer and sue Bank of America and the man won his case and got $125,000 out of Bank of America. I thought this story was great.

[underwater people]

I had that happen with a sleazy credit card company that I had the misfortune of trying to help someone disentangle themselves from. I was making the payments for this person on a debt not my own and those jokers created a draft from a check that I had sent to them and drafted the payment for someone else's debt out of my account. How's that for cahones?

I had the last word, though - by calling the banking commissioner cause you just can't do that - very much like stealing.

I have also heard that if you have a banking acct and credit card with the same bank and you file BK, they might well wipe out your bank account and call it an offset.