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like if you finance a car and you can’t pay it off and you return it and it gets auctioned off….and if you still can’t afford to pay the remaing balance off..can they take the money out of your account?

6 Thoughts on can debt collectors take money straight out of your bank account?
  1. Reply
    CatherineNickName
    November 25, 2011 at 12:34 pm

    No. Nobody can ever take money out of your bank account.

    If you returned the car, then you won’t owe anything because it was reposessed voluntarily. The same with house foreclosures. When you give back the house to the bank, you don’t owe anymore. They’ve got the house. Thats all they will want – the car. It won’t be even given to a collection agency at that point.

    When you give the car back then won’t bug you.

  2. Reply
    Samantha W
    November 25, 2011 at 12:49 pm

    Generally speaking, no. However, I would be very aware of situations where you have a checking/savings account at the same bank where the car note is/was. Banks are not to be trusted. I would not be surprised if there is some fine print in your loan contract that gives them the right to draft funds from other bank accounts at that bank if you should become delinquent.

    But in the usual circumstance, the creditor needs a judgment order from a court to snatch money from your accounts.

    Good luck…..

    Samantha

  3. Reply
    bdancer222
    November 25, 2011 at 1:09 pm

    If they sue and win a judgment, they can attach your bank account, garnish wages, and lien your property.

    Also, if your car loan was at the same bank or credit union where your bank account is, your loan contract probably included cross collateral and they can indeed take your funds.

  4. Reply
    Buy N Sell Everything
    November 25, 2011 at 2:04 pm

    Depends and changes by state. They could sue you in court possible getting a garnishment of wages for the unpaid balance. But that all depends on state and local laws.

  5. Reply
    Roger M
    November 25, 2011 at 2:40 pm

    if they have a judgement, they can take your cash from anyplace they find it. bank accouts are easy targets

  6. Reply
    Ivy G
    November 25, 2011 at 2:56 pm

    There are instances where debt collectors can take money straight out of your bank account, but a judge must authorize it. This means they have to take you to court first.

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