Legal Question in Credit and Debt Law in Utah
can a bank take your car if checking account is overdrawn even though car payments are current?' I plan on making payments to the bank on this account, I have put money on a money card as the over draft is just building up with my checking account, I need to catch up on the remaining bills which can be paid off within one month, then I can focus on paying my bank. My car payment is current and never has been in the rear, I lost my job and wrote checks to pay current bills which my bank has covered, although a few were returned, and each time I deposit money in the bank it just becomes a viscous circle that I cannot seem to get on top of. My bank is my lender for my car? thank you
1 Answer from Attorneys
Your bank has a cross collaterization loan agreement. Default in one account triggers default in all accounts. Get the checking problems solved and you should get your car back. However, you must communicate with the bank, because the next step is to sell your car.
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