Legal Question in Banking Law in Iowa

bank took money from checking account

We have a loan at the bank, (roughly $40,000.oo. We also have our checking account there. the loan is for property. We were behind in our payments, but making a weekly partial payment. The bank took $7,000. out of our checking account without telling us. Therefore bouncing $7,000. in checks. A week later they sent us a letter saying they decided to take the money out of our account. The account was not part of the loan. Is this right. I have been told it is not legal to take money without permission. It was our federal tax return. We never have more then $100 in account. There were no leans on the account. Please let me know. Them taking the money crippled our family. We don't have extra money but is this something I should take action against the bank for?


Asked on 5/21/07, 12:56 am

1 Answer from Attorneys
Regina Mullen Legal Data Services, PLC

Re: bank took money from checking account

It depends upon the terms of your loan. Chances are they DID have the right to take some if not all of the money, so read that first.

You can definitely talk to them about this, though, because they are not in the business of hurting customers this way and it sounds like it was an executive decision. Still, they might also have decided that if you had that much money in the bank, why should they have to accept partial payments...

Talk to them and find out what happened and how you can prevent this in the future. They might be willing to write you a letter for the other creditors and/or refund the overdraft charges.

Read more
Answered on 5/24/07, 2:26 pm


Related Questions & Answers

More Banking Law questions and answers in Iowa