Q: If your vehicle was repoed do they have the right to seize your bank account? I live in Garrison Texas I have an account
An account at cadence Bank in Garrison Texas they have froze my bank account because of this repoed car is that legal
A:
Generally speaking, a lender on a vehicle loan cannot freeze funds on deposit at a different bank or financial institution without filing a lawsuit and obtaining a pre-suit writ of garnishment.
Banks and financial institutions often ask their own customers to agree that, if the customer owes that bank/financial institution money on a loan or other debt, any amounts deposited into an account with that bank/financial institution can be applied by that bank/financial institution to what is owed by their customer. Most customers agree because, at the time they open their account, they do not anticipate borrowing money or being unable to repay it. Such an agreement does not require that a lawsuit be filed or a writ of garnishment. That is simply a self-exercising right of set-off.
That is one reason it is highly recommended that you never get a car loan or credit card from a bank where you deposit your money.
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