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Voluntary Car Repossession

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Dori2000

Junior Member
What is the name of your state (only U.S. law)? PA
My 83 year old mother is medically unable to drive. Her car is being voluntarily repossessed. Can the creditor access her bank account to take out the defaulted amount after auction sale of the car? My name is on her account. I appreciate any help with this concern.
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? PA
My 83 year old mother is medically unable to drive. Her car is being voluntarily repossessed. Can the creditor access her bank account to take out the defaulted amount after auction sale of the car? My name is on her account. I appreciate any help with this concern.
The creditor would have to sue and get a judgment before being able to levy a bank account.
 

FlyingRon

Senior Member
The creditor would have to sue and get a judgment before being able to levy a bank account.
They also might be able to if she's previously authorized the drafts. Anyhow, if mom's a deadbeat you shouldn't put any of your money into that account. You can lose it if there is a judgment.
 

adjusterjack

Senior Member
What is the name of your state (only U.S. law)? PA
My 83 year old mother is medically unable to drive. Her car is being voluntarily repossessed. Can the creditor access her bank account to take out the defaulted amount after auction sale of the car? My name is on her account.
If the loan is in the same bank as the bank account then the bank can take the money out of the bank account under Right of Set Off, a provision that is generally in bank account customer agreements and may even be in the loan contract.

Doesn't matter that your name is also on the account. You are just as bound by the customer account agreement as she is.

If the loan is in the same bank as the bank account then I suggest you close that account ASAP and get her money into a different bank.

And do it fast because you'll have to deal with switching social security direct deposit over to the new bank and that will take some time.
 

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