Legal Question in Credit and Debt Law in Virginia
debit bank account without prior knowledge
i had my car repossed recently and notified of it being sold at an auction. i received a letter from my banking institution in the mail of my car being sold and amount i was to repay the institution after being sold. i recieved another letter the a few days later of payment being paid towards my car loan. the next day i recieved a debit notice from my banking institution of almost 700 dollars, for the car loan. the debit notice was received days after the actual debit being taken out of my account. is it legal for a banking institution to take the money out of my checking account without my agreement or prior notice?
1 Answer from Attorneys
Re: debit bank account without prior knowledge
If as part of your contract to purchase the vehicle you agreed to "confess judgment" upon your default on the loan, then yes, once the vehicle was sold at auction, the shortfall arising from the sale automatically became a deficiency judgment due and owing on your part and subject to immediate collection from whatever source of your assets was most readily available to the holder of the note.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
