Bank debited my account for a charge off w/o permission

[Wyldrush]

What is the name of your state (only U.S. law)? Fl

Last year one of my condo's foreclosed. I tried to short sale but Bank of America holding the 2nd at the time would not settle with 2 different buyers and the condo foreclosed instead of short sale.

Now since BoA held the 2nd, and they never tired to foreclose, the note is listed as a charge off. I been banking with them for long time.

Last week, they decided without notifying me to take $10,000 out of one of my accounts that had about $15,000 in it. I noticed it next day when online the account was debited but did not know why till I called them. I got the letter in mail about 1 week later stating "We have exercised our right to setoff a debt owed the bank against your referenced depository account. Today, the amount of $10,000 was debited from your depository account. After the setoff, the balancing remained in the depository account was $4,892."

I called bank and they said the can do this since they originated the loan and the debt is owed and in the loan documents it states they can as well as the signature card with the bank I signed when opening acccount.

Well BoA did not originate the loan, it was another bank and the BoA bought the loan/servicing. I reviewed the loan docs on defaults and not mentioned. The bank refuses to provide a copy of signature card to show proof and simple told me, they will not give money back and want to only talk to setting up payment plan for rest of money.

Talked to few lawyers locally, and all told me the signature card can give them some rights, and it is a tough call without viewing docs but that sueing will cost to much and not worth it. One lawyer not dealing in this area, said they violated at least 4 laws.

ADVICE?? I am in SoFl.

 

[Mass_Shyster]

What is the name of your state (only U.S. law)? Fl

Last year one of my condo's foreclosed. I tried to short sale but Bank of America holding the 2nd at the time would not settle with 2 different buyers and the condo foreclosed instead of short sale.

Now since BoA held the 2nd, and they never tired to foreclose, the note is listed as a charge off. I been banking with them for long time.

Last week, they decided without notifying me to take $10,000 out of one of my accounts that had about $15,000 in it. I noticed it next day when online the account was debited but did not know why till I called them. I got the letter in mail about 1 week later stating "We have exercised our right to setoff a debt owed the bank against your referenced depository account. Today, the amount of $10,000 was debited from your depository account. After the setoff, the balancing remained in the depository account was $4,892."

I called bank and they said the can do this since they originated the loan and the debt is owed and in the loan documents it states they can as well as the signature card with the bank I signed when opening acccount.

Well BoA did not originate the loan, it was another bank and the BoA bought the loan/servicing. I reviewed the loan docs on defaults and not mentioned. The bank refuses to provide a copy of signature card to show proof and simple told me, they will not give money back and want to only talk to setting up payment plan for rest of money.

Talked to few lawyers locally, and all told me the signature card can give them some rights, and it is a tough call without viewing docs but that sueing will cost to much and not worth it. One lawyer not dealing in this area, said they violated at least 4 laws.

ADVICE?? I am in SoFl.

You can sue them for the $10,000. If you do, you should expect a counter-claim for the full amount that you owe them. You will each get a judgment for the amounts owed. Since you owe them more that they owe you, you probably won't get back the $10,000.

Since they violated at least 4 laws, they may get fined by whoever oversees banks in your state. You won't get anything from the fine.

I would close the account.

 

[Wyldrush]

Thanks. No lawyer mentioned bank would do counter suit, they all just told me to save my money. However as a consumer I like to fight back. I could understand the bank taking me to court to seek a judgement, but the fact they can take money without judgement.

Is it possible for me to file a suit without using a lawyer? I know small claims is $5000. In small claims it is not always about right or wrong but who can afford it. Yes they can countersue and it can cost me more, but then I can always file Chapter 7 to have it wiped.

What amazes me is a bank to get 20% on a 2nd should be happy but they are not, and never were when negotiating the payoff.

Also, what is the name of the state banking office that all banks have to report too. I remember it has the work Currency in it just do not remember. Would filing complaints help.

I actually emailed my house of rep for my area and his reply was rather generic and stated he can not get involved since it is a legal matter.

I think awareness needs to be brought out as well.

 

[VeronicaLodge]

You can sue them for the $10,000. If you do, you should expect a counter-claim for the full amount that you owe them. You will each get a judgment for the amounts owed. Since you owe them more that they owe you, you probably won't get back the $10,000.

Since they violated at least 4 laws, they may get fined by whoever oversees banks in your state. You won't get anything from the fine.

I would close the account.

I'm curious as to what laws you think they violated?

 

[Mass_Shyster]

I'm curious as to what laws you think they violated?

I was simply responding to the original post that included this:

"One lawyer not dealing in this area, said they violated at least 4 laws."

 

[Zigner]

I'm curious as to what laws you think they violated?

I think a point was being made that, even if the bank is fined for violating laws, the OP won't see any of that money.

 

[TigerD]

Thanks. No lawyer mentioned bank would do counter suit, they all just told me to save my money. However as a consumer I like to fight back.

Why? They are the aggrieved party. You are the one that has taken their money from them. You aren't fighting back.

You screwed up. It happens. They have a right to expect to get the money you owe them. When you say you had more than $10k in the bank and were not paying them, I lost all concern for you.

Also, what is the name of the state banking office that all banks have to report too. I remember it has the work Currency in it just do not remember. Would filing complaints help.

That would be the Florida Office of Financial Regulation. And, to be honest, no filing a complaint won't help; but it might make you feel better ... until a banker, who is upset about having to deal with responding to the FOFR questions, unloads a 747 full of attorneys on you for the debt.

I think awareness needs to be brought out as well.

It worked. We are all aware that you fail to pay your bills.

DC

 

[Antigone*]

You can sue them for the $10,000. If you do, you should expect a counter-claim for the full amount that you owe them. You will each get a judgment for the amounts owed. Since you owe them more that they owe you, you probably won't get back the $10,000.

Since they violated at least 4 laws, they may get fined by whoever oversees banks in your state. You won't get anything from the fine.

I would close the account.

You have to learn how to show sarcasm in your "tone" Steve. I almost bought what you said too. This one usually works well

OP ~ The bank was correct and well within their rights to exercise their right of setoff. You agreed to it when you opened your account.

 

[Mass_Shyster]

You have to learn how to show sarcasm in your "tone" Steve. I almost bought what you said too. This one usually works well

Noted.

Thanks.

 

[Wyldrush]

Why? They are the aggrieved party. You are the one that has taken their money from them. You aren't fighting back.

You screwed up. It happens. They have a right to expect to get the money you owe them. When you say you had more than $10k in the bank and were not paying them, I lost all concern for you.


DC

I actually tired about 10 times to make payment arraignments including when I was trying to complete the short sale that had cash offer on table. Even 1st lien holder could not believe BoA behavior and demands at the time. I asked BoA if they discount note to 75% of value, take the 155 of original note being offered and create new loan with a 7% interest rate over a 20 year period and they said "NO" we want 50-60% of the note NOW.

They will never get rest unless they goto court now and then I can simply file Chapter 7 and wipe out debt. I made many efforts to remedy the matter, they way they just went about it was awful in my opinion. I never disputed debt. And then on phone when I called them, they told me they do not want to settle for less.

 

[Zigner]

I actually tired about 10 times to make payment arraignments including when I was trying to complete the short sale that had cash offer on table. Even 1st lien holder could not believe BoA behavior and demands at the time. I asked BoA if they discount note to 75% of value, take the 155 of original note being offered and create new loan with a 7% interest rate over a 20 year period and they said "NO" we want 50-60% of the note NOW.

They will never get rest unless they goto court now and then I can simply file Chapter 7 and wipe out debt. I made many efforts to remedy the matter, they way they just went about it was awful in my opinion. I never disputed debt. And then on phone when I called them, they told me they do not want to settle for less.

Terrible - just terrible! How DARE they expect you to fulfill the terms of the agreement you freely and willingly entered in to with them? Despicable!

 

[Wyldrush]

Well we knows millions have defaults and being in SoFl we got crushed big time. In fact the location in question, I bought in middle of boom for 250K, 3 months later they were sold out at 370K, 1 yr later they were selling for 150K, now my unit is going for about 80K if clean.

hey I tried to keep it good, it is my credit after all. I care about it, plus I still have several other rental properties, but most are bought under corp credit or HML and flipped.

 

[eli4625]

Don't accept it

Don't allow the bank to screw you over. First get all of your monies out of that bank. Second, file a lawsuit. It is time people start standing up to these crooks. These bankers who begged for help from the federal gov't to "save them" from their own greed. Until we stand up and stop banks from screwing the american public they will continue to do so.

 

[Antigone*]

Don't allow the bank to screw you over. First get all of your monies out of that bank. Second, file a lawsuit. It is time people start standing up to these crooks. These bankers who begged for help from the federal gov't to "save them" from their own greed. Until we stand up and stop banks from screwing the american public they will continue to do so.

I guess you're not up on your financial news eli. Those crooked bankers just paid an 813 million dollar interest payment on the loan they took from the feds. Gee...your tax dollars at work are generating revenue for the treasury...how about that

Isn't it ironic how "these crooks" pay their debts as agreed but when others can't pay their debts as agreed, they are not crooks. Sorry Wyld...this is not a slap at you.

FYI ~ the interest rate BOFA is paying on the loan is 8%. The 5-year treasury is no higher than 3.5%. Gee, the Feds are making a nice rate of return on their money.