Legal Question in Credit and Debt Law in California
Bank Loans
If a bank holds checking accounts AND a bank loan for a business and the bank loan is late, does the loan department have the right to place holds on monies in or take monies from any or all of the checking accounts, both business and personal?
3 Answers from Attorneys
Re: Bank Loans
The answer to this question can be found in the small print of your account and loan agreements that you probably didn't read.
Re: Bank Loans
It is impossible to answer your question without reading the loan documents you signed and the agreements that govern your accounts. I can tell you that this type of language is very common in credit union accounts.
Re: Bank Loans
The answer to the question depends upon the contractural arrangments you have with the bank. Ask the bank to show you where in any of the paperwork you signed you have given them this right. It is not automatic. If they can't show you, they can't do it. If they do it anyway, report them to the State or Federal Agency with regulatory jurisdiction over the bank.
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