Bank took money from checking account without prior notification

[whammy]

In January 2000, we purchased a home with a mortgage from our local bank (Bank A)....it was then transferred to another bank (Bank B). Our April 15 payment was late; loan officer spoke to my wife. My wife explained she had been unable to work for 2 months due to health problems, but she was now back to work. My wife indicated a partial payment would be made the week of April 17, with remainder paid on May 1. The loan officer did NOT indicate that this was unacceptable. On April 18, the loan officer (from Bank B) took money from our checking account (at Bank A)with no prior notification. I called and asked for documentation that she had the right to do this; she said she would send it but did not. I wrote a letter to the manager of the bank explaining what had happened and what we would like to see done about it. He did not call, but the same officer who took our money did. She said the manager supported her actions. I again asked for documentation; she said to the effect of "I don't have documentation that says I can take money from your account. It says I can collect in whatever way she deems necessary." Can they do this???? I've got calls in to the FDIC, but haven't heard back from them yet. Oh, yeah......I'm in Tennessee; where every face has a smile!
(and a few include teeth)

[This message has been edited by whammy (edited April 24, 2000).]

 

[Attorney_Replogle]

You have a very interesting case. I don't know your state's laws as I only practice in CA. However, I do believe you are on the right track. Personally, I don't think this dog flies, to use an expression.

Your lender's "rights" to do an unauthorized withdrawal from your checking account should be stated in the various real estate documents you signed. If you can't find it there, then it is possible that it may be a generally authorized procedure in your state for mortgage lenders. I doubt it, but it is possible.

The admission of lack of documentary authority for the mortgage lender to take your money without your knowledge or permission smells of fraud or theft. There may also be collusion with the bank involved here. Thus, I would defintiely speak with a real estate attorney near you about this.

You can find one at attorneypages.com.

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Mark B. Replogle