Clifton, NJ asked in Banking and Consumer Law for New Jersey

Q: Can a bank debit your personal account for past due balance on your auto loan with them?

I have an auto loan with a bank and its due date is every 20th. It's paid through post dated checks given to the bank at the start of the loan. End of August my husband was hospitalized and we have used up our money for the due on September, thus we were not able to pay for it. Since the due is charged through the PDC we have given the bank, we continued to deposit the amount due for October 20 and there was no issue. We are fully aware that there's a monthly interest charge for the due amount for September. We wanted to pay the interest charge (not including the amount) on the November 20th due date. So we went to the bank on the Nov 17 to ask how much is the interest charge from September. They gave me a different deposit slip and have written an amount worth for 2 months. I asked if i can pay for the interest amount only, they said no i have to pay for the amount due for Sept and for Nov as well. I did not push through with it since the money we have was intended for Nov and Dec. So

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1 Lawyer Answer
Leonard R. Boyer
Leonard R. Boyer
Answered
  • Business Law Lawyer
  • Clifton, NJ
  • Licensed in New Jersey

A: Yes, the can and obviously they did. I'm sorry that your husband was hospitalized and that caused financial problems. But in the future, keep any money that you need for a checking or savings account in a separate bank. Depending on your overall financial situation, Bankruptcy may be right for you. An experienced Bankruptcy attorney will be able to determine which type of Bankruptcy is the correct one for you.

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