Can a checking/savings account be depleted due to a past due student loan?
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Can a checking/savings account be depleted due to a past due student loan?
I had a student loan with a bank. They sent it to collections. Years later, I opened checking/savings account with same bank. Loan is still delinquent. Can they take funds from my current account to pay loan off?
Asked on September 11, 2012 under Bankruptcy Law, Oregon
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It depends on the agreement(s) between you and the bank, such as any agreement(s) governing your account with the bank; it is not uncommon for banking agreements to allow the bank to take money out of your account for any debts owed the bank. You should review these agreements, though it may also be a good idea to not bank at a bank which you owe money.
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